Running a successful promo code campaign is more than setting up a code on your e-commerce site and waiting for people to start using it. In 2019, is it really enough to simply create a promo code and share it once on social media? To have a successful promo code strategy for your marketing and business, a lot goes into planning a successful launch and campaign.
Below, we go over everything you need to get started creating promo codes. How they can be used, the average ROI, and other considerations, such as getting codes into the hands of your current and potential customers!
What are Promotional Codes? An Overview
“Promo” codes are basically coupon codes. You set them up in the back end of your website or POS system. Whenever a customer uses a promo code, either at your business location or online, they can take advantage of a certain deal you’re running. Promo codes are great for promoting several different types of campaigns, from a free product with every purchase to a set percentage off on a customer’s order.
Deciding what type of promo code you’ll use varies depending on a lot of different factors:
- Some people like to test different promo codes so they can decide what has the best conversion rate for their customer base.
- Other businesses simply like to vary the promo code incentive so users don’t get bored or used to the specials they have running.
- Quite simply? Your best promo code will depend on your audience, how often you’ll be doing promo codes, and what the actual “promotion” will be.
It’s also important for promo codes to be time- or quantity-sensitive. Otherwise, if your promo code is always available, then people will start to lose interest. Because most people won’t have a FOMO feeling or any sense of urgency, they don’t have a big enough incentive to actually use the code on an order.
Creative Ideas & Names for Promotional Codes
Even for a business, creating the code itself can be fun to setup. Many times a business or marketer will create a simple code that’s easy to remember, like 25OFF for 25% off or BOGO for “Buy One, Get One Free.” Other times, it’s better to use different promo codes for different promotional or communication channels. This makes it easier to track which channel brought in the most promo code users that also resulted in the most conversions and/or sales.
For instance, you could have a 25% off promotion but you could do 25ONLINE for your website and 25ACME for your business (where Acme is your business name).
While some businesses like to keep the code simple so it’s easy for people to remember, you could also go the opposite route and have a unique promo code that would be hard to forget. Something like ZANYSALE or TAKEMYMONEY is a way to make promo codes fun for your audience. It all depends on your audience’s taste, style, and preferences.
“While some businesses like to keep the code simple so it’s easy for people to remember, you could also go the opposite route and have a unique promo code that would be hard to forget.”
Finally, try not to run a promo code at all times so your users don’t think one is always available. This is a mistake that Bed Bath & Beyond made with their 20% off coupons. They’ve seen a dip in revenue and stock value in recent years because customers have become accustomed to only shopping at their store if they have a coupon. Now, they are planning on cutting back on coupons, which many financial and business experts see as a disaster because it will make customers unhappy. Either way, this could have been prevented by making BB&B discounts less prevalent for their customers.
Discount Coupon versus Promotional Code: What’s the Difference?
While Bed Bath & Beyond’s strategy is printed coupons in the mail and on a user’s phone, it’s not always considered the same concept as a promo code. Promo codes are usually mostly used online, so many retailers have set it up so customers can show a promo code on their phone in a store and still get the discount. Coupons, on the other hand, come with barcodes that are scanned in the store, or have a long code number that a user has to enter into a website in order to get the discount. For promo codes, there’s usually a text field box where you would enter a set of words and numbers.
Many coupons are also unique to each customer so businesses can track their use and make sure that it’s not being used more than once. Promo codes can be set up the same way, but in most cases, they’re usually a set phrase that can be used by several different people. Having a unique discount code versus one that works for many people definitely takes a different marketing strategy approach. However, it’s important to note that some marketers and businesses use the words “coupon” and “promo code” interchangeably.
So, What’s the Average ROI on Promotional Codes?
Even though digital coupons and discount codes only make up about 25% of all coupons created (traditional print coupons are still king and make up the remaining 75%) they are still used heavily by consumers. Over 57% of online users have redeemed a discount code at least once, with many doing it regularly.
The ROI of promo codes varies widely and is hard to keep track of, especially if you are sharing it on social media, where you can’t know the exact number of people who have seen it. However, Wikibuy lists a variety of statistics on consumer behavior regarding discount codes. For example, most customers are incentivized to make a purchase or try a new brand when they have a discount code, and the open rate on promotional emails is much higher when the subject line mentions a discount.
Sharing Codes on Facebook, Instagram, Email & More
Once you have your code campaign set up in the backend of your POS system, It’s time to go to work making sure that all the people you want to get in front of are seeing your promotional campaign. A big part of this is sharing your codes on social media, especially where your audience is most active, like Facebook and Instagram.
As mentioned earlier, email marketing also has a big place in promoting your codes especially because your mailing list is full of people that have already purchased from you or have an interest in doing so. Because of this, they are already more likely to make a purchase from you and a promo code may be the extra incentive they need to finally make the leap.
Distributing Your Promotional Codes
There are two ways you can distribute a code: the first is through sharing a code online and anyone that sees that can use it.
Another method is to create a landing page or sign-up form where users can receive the code. Once users fill out your form(s), they’re able to receive the code through email or instantly on the confirmation screen. For this method, you can create unique codes for each customer to better track who is using the codes, which can help you better segment your email list.
For instance, you could segment users who redeemed the code into one list, because you know that not only are they receptive to discounts (because they signed up) they actually took the time to redeem the code during a transaction with your business. Either way, you can promote the code or the sign-up form through any social media platform, email marketing provider, or SMS service, as long as you’re following FTC guidelines for promotion.
Advertising & Promo Code Strategy
There are also additional strategies you can use to promote your promo code campaigns, such as a paid social media or PPC (pay-per-click, AKA paid search like Google Ads) campaigns. Even though you’re already offering a discount and you have to pay for the paid campaign, many businesses see such a jump in sales from getting exposure to a wider audience that it’s worth the initial upfront cost. In addition, some of these customers who initially redeemed a promo code from a paid campaign become regular customers who don’t always use discounts. This leads to a long-term gain in revenue versus not running any type of promotional campaign at all.
For deciding what audience the code should target, there are many ways to go about it. Many retailers think about what it takes customers to make a purchase and tie that into their campaign. For instance, if a user created an account on your e-commerce store, but didn’t end up making a purchase, you can create a promo code that will hopefully incentivize them to make their first order. Similarly, if a user abandons their cart, you can send out a promo code that will hopefully convince them to come back and finish the sale.
Many businesses also send out promo codes for returning customers or codes for specific products that the customers have bought before. If your email marketing platform is set up for this type of segmenting, it can be a great way to reach specific parts of your mailing list to send them a targeted promotion. This usually leads to higher conversion and open rates.
Promo Code Campaign Options in Woobox
In Woobox, you can easily set up a promotional campaign using the Coupons feature. With Woobox, you get the added benefit of not only seeing a higher conversion rate from coupons but also a new lead generation tool.
Within Woobox, you can create a custom promo code or coupon landing page that asks users to fill out their information before receiving the coupon in the mail. Once you set up your landing page, you can customize your other features about your coupon campaign.
Woobox coupon features include:
- Email or instant delivery options
- Distribution of unique codes for each user
- Limits on how many users can redeem the code
- Limits on how many times a single user can use a code
- Promotion options
- Data export options
- Performance tracking options
Woobox Coupon landing pages also allow you to follow GDPR (General Data Protection Regulation) guidelines for collecting user information. Even though GDPR is part of the law in the European Union (EU), many businesses are implementing the requirements across all their global communication platforms, even in the United States. They have found that it’s easier to do this then to segment out what their European customers are seeing compared to other customers around the world.
With Woobox, you can specify age and geography requirements or you can require users to accept the contest rules (which can include GDPR requirements) in order to submit the form.
With Woobox’s many features, it’s easier than ever to launch a customized campaign that fits your needs. Because the campaign comes with a Woobox-hosted landing page, it’s easy to share the URL across multiple platforms such as email or social media. Sharing the landing page in as many places as possible not only helps you gather new contacts for your email list, but can increase the chances that your codes will be used by more customers. This leads to higher revenue and ROI.
Overall, promo codes are a great way to entice your new and existing customers to make a purchase with your business. They are easy to roll out and can be promoted across a variety of different platforms, no matter which ones your business is using. Some industry audiences might react to promo codes differently than others. For instance, promo codes are relatively common in B2B e-commerce stores, but they likely aren’t seen as much on a industry site like a B2B machinery manufacturer. This doesn’t mean that some industries can’t use promo codes, the strategy just must be thought about carefully. It’s best to A/B test many different types of campaigns, promotional tactics, and other elements to decide what works best for your audience.
Contacting Woobox Support
If you have questions about code campaigns on woobox or want to learn more, you can contact Woobox Support from 8 a.m. to 5 a.m. Pacific Monday through Friday. They’re available via phone or email: 1-360-450-5200 or firstname.lastname@example.org.