Coupons and promotional codes are synonyms. They have one goal: to attract a user and convert them into a sale. The only difference is that the coupon comes in the form of a certificate redeemable for a discount or a free product. A promo code is a combination of letters, symbols or numbers that you must enter to get a discount or a free product.
Most often, the coupon is:
- a promotional code that can be purchased on special coupon sites.
- physical leaflets at a reduced price that you can apply in an offline store.
The type of coupon and promo code depends on how they are distributed: through radio or TV advertising, offline, or through blog integrations. A promo code can be a secret word on the radio, and a coupon can be a discounted advertisement cut from a newspaper in a supermarket. And what about the famous “brewdog discount codeâBeer campaign, when there was a free bottle of beer under every other cork? It is also a coupon that the buyer receives with the product.
Who will benefit from coupons and promotional codes?
Promo codes should be used when you have flexible prices and are technically feasible. Because the discounts have lost profits which we use as a marketing tool to attract customers.
Promotional codes can also be useful for marketplaces. They are definitely better than general discounts. After all, the market contains goods from different stores, each with their own system of accounting, deliveries and shipments of goods. It won’t always be possible to automatically give a discount on a product, and if it does, it will take much longer than giving out a promo code for a specific product listing.
Alternatively, promo codes are useful for a business with sales coming from multiple channels. We had such a client, a chain of restaurants. They had three points of sale: an app, a website, and a chatbot. Here the fun began. For example, someone received a letter and ordered lunch for them through the app. There were a lot of options for such links. Therefore, we have tracked the effectiveness of the channels through promotional codes. Each channel has its own promo code. They took sales figures, looked at the number of promo codes used, and based on that, figured out which sales channels were the most effective.
Why do you need coupons and promo codes
With coupons and promotional codes, you can:
- Monitor the effectiveness of the different acquisition channels. Suitable if conversion to sales is difficult to track using traditional analytics. For example, a restaurant sends out a newsletter announcing a new menu, but to order, you need to go to the restaurant’s app.
- Increase customer loyalty. For example, if a customer is late with an order at McDonald’s, you can give them a card (coupon) to exchange for an ice cream cone.
- Increase the number of duplicate checks. Suitable if you need to stimulate purchases – for a specific group of customers or a group of products.
Coupons and promotional codes can help you:
- attract the attention of new customers to the product.
- retain existing customers.
It is important not to overdo it with these tools, so as not to destroy the value of the product with constant discounts and giveaways. Because if you are constantly giving out coupons or promo codes, the user might be thinking, âThere is something wrong with these guys because they are giving everything away for free. “
Therefore, all loyalty programs and promotions are complex mechanisms, the risks and rewards of which you must consider.
When a promotion starts, it lasts for a while. And here we have to give a message: âIt all started, let’s start! Or “It will be over soon, we are running faster.” This is where the promotional code comes in, which can play the role of:
- promotion access key: “We will give you a promotional code, without it, you will not be able to participate in the promotion.” “
- the last argument: âThe action is over for everyone, and specifically for you, it continues. Here’s the latest promo code for you, apply it before it’s all gone.