Tips / Advice / How to / Insights
With the holiday season quickly approaching, consumers are gearing up for the busy gift giving season ahead. With that in mind, shoppers are looking to maximize their dollar through purchasing with discounts and taking part in holiday promotions. In fact, 71% of consumers are highly influenced by sales and promotions when deciding where to purchase gifts from [1].
We’ve learned that promo codes offer many benefits for both the brand and the consumer. Promo codes are formulated by using any word or randomized combination of letters to unlock a discount or special offering, when inputted at checkout. Each promo code can be set up with one or many unique codes to each targeted customer. For example, using the code “HOLIDAY” for 10% off or “CYMHA” for a $10 bonus card are two best practice examples of promo codes.
The demand that drove the creation of our promo codes feature was based on these 3 key benefits to our partners:
1) Increase Sales and Up-Sell Opportunities
More than 37% of customers are drawn to sales and spend more than their original budget when a sale is taking place [2]. Promo codes that unlock bonus cards or discounts such as, “use the code “HAPPY” to unlock 10% off when you buy a $120 gift card” encourages consumers to increase their spend. In 2018, about 66% of impulsive purchases were influenced by promotional offers [3].
2) New Customers
Brands use promo codes to market to new customers. Promo codes targeting first-time users or new customers specifically, reflect positive experiences as new customers feel valued and see a return on their purchase immediately. 80% of new customers felt encouraged to try out new brands with a promo code [4]. Attracting new customers is the start of building a loyal customer base and often, through word of mouth, will entice other new customers to partake.
3) Reporting & Analytics
Promo codes can help companies track a specific group of shoppers through a personalized code. Creating unique promo codes for one promotion is often a strategy that brands use to better track and collect their customer data. Brands prefer specific data over generic data as it collects and compiles information in an organized manner. Companies can gain insight, such as the ROI of specific marketing initiatives, active audience information, and additional promotional data that can be utilized for future campaigns.
So, if you’re looking for a way to engage customers, new and current, while encouraging more spending, implementing promo codes this holiday season is a great way for you to do that.
—