Over the years, marketers have come up with shrewd tactics to drive the sales number up or reach branding goals in general. Some have turned out to be short-lived successes, some have become predictable gimmicks slowly losing their appeal. However, some of the concepts have sustained and have become fundamental to the concept of marketing and promotions. Promo codes, even though they have been comparatively newer concepts in the markets, are yet to lose their charm. So, are these things here to stay? What makes promo codes so different and sustaining? Let’s take a look.
What Is a Promo Code?
A promotional code is a code that businesses provide to consumers in order for them to earn a discount while purchasing things online. They are often related to an overall promotional marketing plan and are offered by online retailers to stimulate purchases on their websites. A promo code’s discount may be applied to specific goods or a whole purchase. Promo codes can be used without the context of a campaign as well. Many companies offer promo codes to first-time customers or for using a specific payment gateway. Promo codes have been around for quite a while. Despite that, a decline in their popularity is yet to be seen. Especially in this era of buzz marketing, promo codes are being used more extensively.
How Are Promo Codes Useful: A View from Both Sides
When a retailer gives promotional codes, it is incentivizing people to purchase, which helps both the customer and the company. Customers obtain the items they want at a lesser cost, and the company makes money. One of the most useful aspects of promotional codes is that they may be used by both new and returning consumers. According to studies undertaken by the Center for Neuroeconomics Studies at Claremont Graduate University, these incentives have a direct influence on the whole purchasing experience.
If you consider the utility of promo codes at the surface level, they are practically discounts. However, there is a catch. Promo codes are the logically evolved version of straight-up price reductions and the following points will explain why.
Promo Codes: A Customer Point of View
Over the years, promo codes have been shown to be more effective in grabbing the customers’ attention and making them feel rewarded to a greater extent. To quote the aforementioned research-
Getting a coupon, as hard as it is to believe, is physically shown to be more enjoyable than getting a giftPaul J. Zak, director of the Center for Neuroeconomics Studies at Claremont Graduate University
Peer-reviewed studies have reported that pride and satisfaction and price consciousness were the major reasons behind the customers’ appeal towards the concept of coupons. However, the time constraints associated with them also added a sense of urgency, eventually speeding up the purchase process.
Let’s take a look at some numbers. A 2020 survey reported that coupons were particularly popular among millennials. Nearly 9 out of 10 members of this particular demographic would be interested in trying out a new brand if coupons were offered. This is a great implication for start-ups of the industry to make a statement in the consumer mindscape.
In fact, customers consciously look for these coupons or favorable deals nowadays. Inmar reported that nearly 60% of customers navigated coupon websites to venture better deals. At this point giving coupons to a company’s target demographic has become a point of parity, you fail to do so, and you’re falling behind.
Additionally, promo codes make unconscious selling to consumers easier. Take, for example, Blippr predicted that coupon code users are likely to spend 24% more than non-users. So using promo codes might compel a customer to buy something even if they had not initially intended to. Aside from that, let’s view things from a functionality perspective. Promo codes are more effective than discounts because they grant control to customers. To elaborate, for example, if a customer got a 15% off promo code on a particular order, he might want to use it on a larger order value. However, if this was a 15% off discount, he would not have that choice. This adds to the list of reasons why promo codes are favored tremendously.
Promo codes can be used in tracking campaigns and their success as well. Companies often track the usage of these codes to accurately measure the reach of certain marketing activities, helping them to understand the consumer demographic better. Using promo codes is also complementary to buzz marketing campaigns. They are widely used in influencer marketing, which has risen to prominence in the age of social media. All in all, promo codes have become a versatile marketing tool that can be used in various contexts, making them an essential component in promotional activities.
Easily Create and Manage Promo Codes for Your Webshop with EZAssist
EZAssist is a resourceful companion to your digital business function. The platform offers a wide range of customizable promo code options. You can use the code indiscriminately to introduce a new product, target specific group of customers or even a single customer, make the promo code applicable to a specific segment to your vast product portfolio- the possibilities are endless! Creating and managing promo codes have never been easier. As more and more consumers head to digital marketspaces, marketers need to turn their attention to digitalizing functions as well. EZAssist is a highly advanced yet incredibly user-friendly toolkit to accompany you in this journey.