What are promotional codes (promo code)?
Promotional codes are alphanumeric strings offered by online stores to encourage purchases on their website and are usually associated with an overall promotional marketing strategy. The discount associated with the promotional code can be applied to individual products or to the entire order.
How promotional codes work
The discount can be a percentage or a fixed dollar amount. Promo codes also provide customers with free shipping or gift wrapping. This marketing strategy essentially gives customers another reason to buy your products.
According to Microsoft, a promotional code, sometimes known as a coupon code or discount code, consists of a combination of numbers and letters. It is used for specific purposes, such as a holiday marketing campaign.
Why do promotional codes work?
When a store issues promotional codes, it gives customers an incentive to buy, which benefits both the customer and the business. Customers get the products they want at a lower price, and the eCommerce store generates revenue. One of the most useful things about promotional codes is that they work well with new and old customers alike. Even these incentives have a direct impact on the overall shopping experience, according to research from the Center for Neuroeconomics Studies at Claremont Graduate University.
“Getting a coupon, as difficult as it is, physically sounds more fun than receiving a gift,” said Paul C. Zak, director of the Center for the Study of Neuroeconomics at Claremont Graduate University.
The study showed that people who received promotional codes had elevated levels of oxytocin, a hormone that generates feelings of happiness. With this very physical interaction on your potential customers' minds, it's a good idea to try to incorporate promo codes into your blog business plan no matter how you monetize your website.
Track your promotional code marketing efforts
Promo codes are an effective way to track your marketing efforts to see which platforms drive the most traffic or drive conversions, according to Inc. Different codes can lead to the same discount, so you don't need to create a different discount for each ad. You just need a new promo code. For example, you can create slightly different codes (SaleFB, SaleTW, SalePT) so that any ad or marketing effort on Facebook, Twitter, and Pinterest will have unique platform-specific promotional codes, according to Inc.
Assigning specific numbers and letters to a specific ad is especially helpful if a customer sees the advertised promotion in an email or on social media, but doesn't immediately click through to continue with the promotion. You will still be able to capture and analyze the ROI of advertising on this platform because by entering the custom promo code, the customer also tells you where they saw the advertised sale.
How to use promotional codes
When a customer enters a promotional code during checkout, the store confirms that all conditions of the promotion have been met prior to validation. If a promo code offers a 20 percent discount on shopping carts of $200 or more, for example, the code won't work if the minimum threshold isn't reached. You can also customize the requirements to exclude certain brands or products.
use multiple codes
Depending on your location, you may be able to allow customers to enter multiple promotional codes or limit customers to just one. While it is up to you to decide how many tokens the client can use, it is important to ensure that the transaction remains profitable for you, regardless of the combination of tokens used.
What are the different types of promotional codes?
There are three different types of promotional codes that store owners can choose from.
1. Generic (generic) icons
Anyone can view or use a generic promo code. These are useful for attracting new customers and encouraging previous buyers to come back for more.
2. Special (private) icons
Stores use special codes to target a specific group of people. Loyal customers often receive special codes for special buying opportunities, such as first-time buyers, which is a great way to attract new customers.
restricted symbols
The restricted code is for one user and can only be used once. For example, you can send a customer a verification code as an apology for the late shipment or as a thank you for their purchase.