Consumers have come to expect coupon codes in e-commerce. Smart marketers can use codes to motivate customers to purchase and will track the return on investment of their campaigns. They have become an important part of the marketing mix.
When is the last time you were on the Internet and all of sudden a pop-up appears with a special offer? It can be anything from a discount, free shipping or a $10 off for your birthday.
Promo codes are so popular that online shoppers actually expect them, and there are many sites that simply list these coupon codes for consumers to review and use. Consumers know they can shop around to get the best deal. There are websites like Groupon, Zulilly, Vouchercloud, RetailMeNot and SlickDeals that offer all types of promo codes and discounts directly to consumers.
According to Vouchercloud, 65% of consumers say online voucher codes often sway their purchase decisions if they are undecided, and approximately 90% of coupon users say they will purchase from a retailer again if they are offered another valuable coupon.
The reasons to use promo codes are very simple: they can move surplus inventory, attract new customers and they provide sales. Research also shows they can also increase purchases when consumers leave something in their shopping cart but do not purchase.
TThis has happened to me many times on department store sites, and many online clothing companies. Promo codes also provide a way for a company to attract more consumer email addresses.
Promotional codes are a great opportunity for measurement and tracking. They allow companies to track a sale not just to a specific campaign, but down to the medium on which the code was offered.
Another important use of promo codes that helps retailers is the fact that many consumers share what they perceive as a great deal with their friends. Sometimes this is done on the phone, as a text, and on social media platforms like Facebook. The best
part about sharing on social media is the fact that friends then share the post with others, and the potential market becomes huge. Like the old adage says, word of mouth advertising is priceless.