Today’s shoppers encounter coupons everywhere. Flyers are handed out on the street with discounts on haircuts, your favorite cosmetics brand is launching promotions for holiday collections, and the “Promo code” line in the online store seems to invite you to find the treasured numbers online. In this article, we will tell you how these codes benefit eCommerce business people and what mistakes should be avoided when using them.
How Promotional Codes Work
They usually consist of letters, numbers, or a combination of both. Their operation mechanism is quite simple and beneficial for both the buyer and the seller.
The client activates a one-time code when placing an order or paying on the website. The store’s system verifies it and applies a discount or another benefit, such as free shipping or an additional gift. Users can find the combinations in various promotional materials or on dedicated resources. Usually, such sites offer promo codes for different online shops and marketplaces.
Benefits for eCommerce Businesses
The store receives a powerful combination of benefits through coupons.
- Increases sales: Promo codes encourage people to buy earlier, more often, or for a larger amount than planned.
- Attracts new clients: Marketing with promotional codes shows high efficiency. Users become more interested When they hear about the opportunity to receive a discount or other benefits.
- Returns existing customers: Many customers choose the same store over and over again because of its discount promotions. It allows you to increase LTV while reducing costs and earning more.
- Promotes your brand: The audience of promotions often tells their friends about the offer or posts information on social networks. It allows the company to get free advertising.
All these advantages come at a relatively small discount, on average from 3% to 25–30% of the cost of the product. In this case, of course, there is no question of the seller’s loss: the discount is usually deducted from a reasonably hefty markup on the product.
Also Read: 5 Best WooCommerce Discount Plugins You Need to Know About!
How to Use Codes Correctly
You need to act thoughtfully and systematically. Here are the steps to follow.
1. Set Goals- eCommerce Businesses
Think over the goals and criteria for the effectiveness of the promotion. It could be increased sales of specific products, attracting new customers, improving customer return, etc. Think about what statistics will allow you to understand that the promotion was successful: volumes, sales amounts, increase in the number of repeat orders, etc. Set up the system’s analytics so that it is easy for you to obtain this data.
2. Selecting a Strategy- eCommerce Businesses
Determine who you will send advertising offers to, during what period, and through what channels (for example, using context and targeting or using only email campaigns). Consider how and where people will use your codes and what benefits they will receive. Allocate the required budget for all operations: the work of a designer, copywriter, payment for mailing services, technical support, etc.
3. Decide on the Numbers
Calculate how much discount you can give. In this case, two criteria must be taken into account:
- Your business budget and prices: The amount should not be critical for overall sales statistics. Promotional products should bring profit, albeit reduced compared to the standard ones.
- The amount of discounts offered by competitors on similar products: For example, if other online clothing, shoes, and accessories stores give a 15% discount, and you only give a 3% discount, they may not even pay attention to your promotion.
Also Read: 11 Best WooCommerce Giveaway Tools for Online Contests + Giveaways
4. Create a Promo Code- eCommerce Businesses
Make sure the code is clear and easy for customers to enter. Then, you must set up an accounting system based on CRM and analytics services. Most large CRMs have corresponding modules for this. Also, add a code entry field to your online store when placing an order.
Possible Mistakes- eCommerce Businesses
Despite all the advantages of such promotions, problems, and mistakes can add a fly in the ointment, from which no one is immune. Here are the most common difficulties you may encounter.
- Unclear or complex promotional code: If it consists of many unusual symbols for the user, it will be difficult to remember, inevitably reducing the number of activations. Promotional codes in marketing should be simple and clear. They should be easy to remember and enter.
- Invalid expiration date: If the deadline is not clearly stated or expires before the indicated date, it can cause customer frustration and mistrust. You should also be very careful when working in other countries and time zones.
- Mechanical failures: These include a wide range of technical problems on the company’s side that prevent the code from being applied as intended. For example, the system shows a different discount amount or generates an error.
- Non-working analytics systems: They can negate the entire result of the promotion since they will not allow you to obtain complete and reliable data on how many promotional codes were used, for what number of orders were made, what products were purchased, etc. Before launching a campaign, it is vital to test and carefully check the correctness of accounting statistics in CRM and other systems.
The ad or email that tells people about your offer can also contain mistakes. For example, you may forget to proofread the text for typos, indicate the wrong discount percentage, or include all the promotion conditions. It can alienate the audience and attract the attention of government agencies that control the advertising industry.
Conclusion on eCommerce Businesses
Marketing with promotional codes requires careful planning and monitoring to avoid mistakes and create a positive customer experience. But if you do everything right, you can get high conversions and increase sales and customer loyalty. Promotional codes will allow you to boost your business quickly and with minimal effort.
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