Promo Codes – How to Use Them to Increase Sales and Customer Retention
Promo Codes
A promo code (or discount code) is an alphanumeric string of characters that can be used by your eCommerce site’s customers to redeem discounts on their purchases. These codes can be a great way to increase sales and customer retention, especially when deployed strategically across multiple channels of your business’s marketing mix.
While offering coupons and promotions to customers is a no-brainer, how you use them will depend on your brand’s goals and the type of audience you’re targeting. For example, while promo codes are a common feature on many B2C sites, they’re less likely to be seen on an industry site such as a B2B machinery manufacturer.
When a company offers a promo codes, the code can be shared via social media, email or even within an online ad on search engine results pages. They’re also commonly included in loyalty programs, customer referrals and as rewards for signing up for a newsletter. Some companies also share them at special events like livestreams or webinars.
Promo Codes – How to Use Them to Increase Sales and Customer Retention
The more a promotional code is promoted, the higher the chance it’ll be used to make a purchase. The key is to not overdo it with these kinds of offers — too many promotions can hurt your credibility with your customers and discourage them from buying from your store again.
Regardless of the channel you use to promote your code, there are a few things to keep in mind to ensure its success. First and foremost, you’ll want to set your promo code thresholds. These are the minimum order amounts a customer must meet in order to receive their percentage off, free shipping or gift. This helps prevent a discount from being used on a low-value product, which can hurt your revenue.
Next, you’ll want to decide whether or not to allow your customers to stack or combine codes. While this isn’t a bad thing, it’s important to note that many shoppers are savvy enough to notice and avoid this practice. In order to avoid this, you should only offer multiple codes as an incentive for specific actions such as referring friends and family or buying your products on a birthday or holiday.
Another way to leverage your promo code strategy is by sharing them in a more traditional manner, such as through offline promotions. You can include them in fliers, posters or direct mailers that are delivered to customers’ homes. You can also use promo codes in your social media posts or on a blog to drive more traffic to your site.
No matter what industry you’re in, a strategic promotion using a promo code can help your online store thrive. The best approach is to test out a variety of channels to find the one that works best for your brand. Once you’ve settled on a strategy, you can then start planning how to deploy your promo codes. For more information on how to do this, check out our comprehensive guide to creating a coupon and promotion strategy for your ecommerce business.