The discount can either be a percentage or a specific dollar amount. Promo codes also provide customers with free shipping or gift-wrapping. This marketing strategy essentially gives customers yet another reason to buy your products.
According to Microsoft, a promotional code, sometimes known as coupon code or discount code, is made up of a combination of numbers and letters. It’s used for specific purposes, such as a holiday marketing campaign.
What are the different types of promotional codes?
There are three different types of promotional codes store owners can choose from.
Public codes – Anyone can see or use a public promo code. These are useful for enticing new customers and encouraging previous shoppers to come back for more.
Private codes – Stores use private codes to target a specific group of people. Commonly provided to loyal customers for special shopping opportunities, such as first-time shoppers, private codes are a good way to bring in new customers.
Restricted codes – A code that is restricted is targeted to a single user and can only be used once. For instance, you might send a customer a restricted code as an apology for a delayed shipment or as a thank-you for making their 50th purchase with your site.
Most coupon codes offer discounts for online purchases such as a fixed discount, a percentage off the entire purchase, free shipping or other discount as advertised by the merchant. There are as number of phrases used to mean coupon code, including the following: promotional or promo code, discount code, offer code, gift code, digital coupon and similar variations.
Most people don’t think of promo codes and ROI together, but we disagree. If you’re not using smart codes to track the Return on Investment of your marketing strategy, you’re missing a trick!
The beauty of promotional codes is that you can fit so much information inside them. It’s easy to generate QR codes and barcodes which are uniquely linked to each individual customer, for example. And you can use that unique information, together with data from the point of sale, to see exactly how customers are interacting with your promotions.
Set up your campaign so that customers receive different codes, depending on how and where they download the code. Let’s say one customer spots your promotion on Facebook and downloads a QR code to their smartphone to use in-store. Another user clicks a link on your website, gets the code by email, and types it in at the online check-out. Those two customers have received two different codes. By tracing which codes they use, you can link customer profiles to the download method and shopping styles they prefer. You can even track the time between receiving the code and applying it to a purchase.
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