We love promotional codes. We all do! They're a great tool to bring in sales and create some hype for a product. People love the feeling that they've made a great deal, and promo codes can give that feeling.
They're also great for tracking which marketing campaign is doing really well. For example, if we're working with a few bloggers to promote our products, and they have specialized promo codes, seeing how many sales come from which blogger helps us choose who to partner with again in the future.
But don't do the promo code campaign blindly!
There are two things that you need to consider before getting started on the promo code bandwagon.
Consideration #1 - Shoppers Get Distracted Hunting for Promotion Codes
We've all seen the standard website shopping cart with a promo code field when checking out. It's everywhere.
Take, for example, popular online store Zalora. Once the customer gets to check out their shopping cart, they are given an option to add a promo code or gift card.
What do most of us do?
Open up a new browser window to look for a promo code.
A study by PayPal and comScore found that 27% of participants abandon their cart to look for promo codes. Imagine that. They're almost buying, but suddenly click away to look for a promo code.
Then they find a better deal elsewhere, or do something else instead.
Consideration #2 - Shoppers Start Expecting Deals Every Time
It might feel great at first to get a lot of buyers when you release a truly great deal. But do it too often, and your sales might tank when you don't have a deal available. They start waiting for the sale, or go elsewhere instead.
Plus, all the effort that goes into marketing your sale and promotion in the effort of attracting more customers will eat into your profits too, even more than the actual promo.
What Does This All Mean?
Don't lose heart! Just because there are some considerations, doesn't mean you should give up on promotional codes. Coupon users spend 24% more than regular shoppers. They're still a great marketing tool and you should use them when it's appropriate.
Here are some great ways to make the most out of promo codes.
Use Promo Codes With Great Influencers
While it might take time to build, a relationship with a great blogger or influencer can do wonders not just for sales but for your brand's image. They have access to a market that already trusts them, and you'll be able to tap that market with their help.
Consider that 57% of people say they wouldn't have bought from a shop they haven't tried before, if it weren't for a coupon. Combine this with your affiliate vouching for your products and you've got a great chance of getting new customers.
Give Shoppers Promo Codes Yourself
Don't give them a reason to go looking for promo codes elsewhere. If you make it easy for them to find applicable promotional codes, they are more likely to stay and use the codes you've provided.
You're also building trust with your customer that you're up front with them right from the start about what promotions they can avail. Take into consideration immediately alerting them that they have unlocked a promo code:
You're building goodwill and they'll feel even more excited when they buy from you.
Tie Promo Codes With Membership
Membership can be anything from signing up at your website, your email marketing list, or your SMS subscriber list. Make sure people know that they can get great deals if they sign up, and reward them quickly with welcome coupons or deals.
This can help manage coupon availability to customers who have an existing relationship with your brand. Building customer loyalty is a great way to get more customers to make return purchases.
Don't Forget to Check
As with all marketing campaigns, make sure you track how well your promo codes are doing! This way, you can focus on the codes that work and start disabling the ones that don't. If you've got a chatbot with us, it's easy to see promo code usage by checking your order spreadsheet!
How your codes are being used can say a lot about your market: which influencers are great for your brand, or perhaps which kind of customers are your biggest spenders.
Check with our friendly agents if you want to start using promo codes with your chatbot now!