Using discount codes can provide valuable data and inventory control to the seller. Here are five benefits to creating discount codes for your business:
• Bring in new customers. This is always our first goal. When a consumer is ready to buy and has looked at multiple sources for the product, price is often the deciding factor. Consumers are attracted to a good deal. Offering a discount code to new customers provides an added reason to shop at a particular website over all other options.
• Encourage repeat business. Satisfied customers will shop again when they are reminded to do so, and given a compelling reason to return. A special discount code can be sent via email at specific intervals as a thank-you for past purchases and to encourage repeat business. The more times they come in contact with your website name the more likely they are to remember you.
• Increase order size. Time-limited offers create a sense of urgency and give customers a reason to buy more than they originally intended. Discount codes can be offered for a percentage off the purchase price of a second item, for example, or for free shipping on orders totaling a specific amount. Free shipping always has been and seems likely to always be a huge order grabber.
• Tracking. Gathering data on customer trends is imperative for every etailer. Issuing separate discount codes for different mailings, website promotions and affiliate partners, for instance, provides important information on where customers come from and which marketing campaigns are most effective. This data can then be used to make decisions about future marketing programs. Etailing is all about keywords. By setting up different codes for campaigns you can find out if blue exterior shutters brings you more clicks than white exterior shutters.
• Control inventory flow. Physical stores manage inventory flow by marking down items they want to move. Online storefronts can use discount codes for the same purpose. The discount can be offered across the board, or used to bring in new customers with an interest in that particular product category, or sent to previous customers who bought similar products. Of course, just like a brick and mortar store moving older product is key. Offer up a discount or add on sale of older products with brand new inventory.
There are several ways discount codes can be applied. Etailers generally offer a set dollar amount off the normal price of a product, a percentage off the price of a single item, a discount on the order total, or free shipping on orders that exceed a minimum dollar amount.
Discount offers can be extended through a number of vehicles. They can be posted on the landing page of the storefront. They can be emailed to select past or potential customers. They can be introduced on the order summary page to encourage the customer to add items to the shopping cart. Or they can be listed at sites such as currentcodes.com or dealhunting.com.
Many etailers determine the effectiveness of their marketing strategies by tracking the use of discount codes. The information can help businesses achieve the highest possible ROI and sales at the best available rates. If you are running a campaign as an affiiliate of a company, the think about contacting them. I emailed my favorite bath and body company and had them give me a special discount code so I could see how my newsletter ad worked.
