Promotional codes are a cornerstone of marketing in 2019, and this is seen with every major retailer in the world. Some retailers offer free shipping, or following in the footsteps of Papa John’s Pizza, some promotional codes are provided daily or when a sports team reaches a certain milestone.
I know when my favorite hockey team scores three or more goals, there’s a discount that Papa John’s offers. Even though I don’t appreciate their pizza all that much, I am turned into a customer because the quality is average, but the price is exceptional when a promo code is applied.
Why Marketers Recommend Promo Codes
Marketers recommend that businesses offer promotional codes because 77% of consumers claim that promo codes will influence where they shop. Consumers are also willing to share their personal information with a business to receive a promo code, and this may be:
- Phone number
All of this information can be used to further market to the consumers. I am still receiving promotional codes and emails from retailers that offered me a discount for my email address over 10 years ago.
Coupons can help businesses by:
- Turning would-be consumers into buyers, offering an incentive to try a product or service at a discounted price. This works especially well for subscription services where a free trial or low-cost trial of a product or service.
- Driving traffic to a business when business is slow. For example, if business is slow on Tuesday, the company may offer discount codes for Tuesday purchases. The idea is to drive traffic when sales are slow to keep the lights on.
- Promoting the business on more websites. Coupon code sites, like Promocodius USA offer the option to further promote a business, gain a strong link and make more sales.
But promo codes can also help with tracking the success of a marketing campaign. With the right analytics system in place, it’s possible to manage your codes and know what campaign is working best.
Promo codes can be used on everything, from marketing material to social media.
When Promo Codes Are Not Ideal
Promo codes are not ideal when your profit margins are small. When a business has 10% profit margins, it may not be feasible for the company to offer a 20% discount because it can lead to unprofitability.
There should be a proper financial balance when determining when promotional codes are acceptable or not.
Perhaps on slow days when sales are not coming in, a promotional code can help boost the sales process.
Yet, promotional codes can be used in a variety of situations:
- Cart abandonment
- Birthday or anniversary codes to lure in more consumers
- Referral programs
Products and services should provide enough of a profit margin that it’s possible to offer discounts or promotions to consumers. Over time, it’s possible to increase prices to reflect these discounts and “pad” your bottom line.
But when consumers are not yet sold on your product or service, promo codes can help fill the void and convert many of these potential buyers into sales.