Promotional codes are complex alphanumeric strings offered by online stores to shoppers with the primary aim of encouraging them to make more purchases on their website. The discounts associated with a promo code Shopify can primarily apply to individual products or an entire order.
How promotional codes work
Promotional codes usually offer discounts in the form of percentages or specific dollar amounts. Also, most of them typically provide customers with free gift wrapping or shipping services depending on the location of the client and the value of items bought. This marketing strategy usually gives customers real reasons to buy different products.
Why promo codes work
When a store issues a promotional code, it provides a customer with an incentive to buy, which in specific ways benefits both the customer and the business. Customers get the products or services they want for a lower price while the e-commerce store generates revenue from the sale.
One of the most important things about promotional codes is that they usually work well with both new and existing customers. Also, the promotional codes typically have a direct impact on the overall shopping experience of different shoppers. According to research conducted by the Claremont Graduate University, getting a coupon, as expressed by different shoppers, is typically considered to be of more benefit as compared to getting a gift. The study showed that many people who received promotional codes had higher levels of oxytocin, which is a hormone that generates feelings of happiness.
How to use promotional codes
When a customer keys in a promotional code during the checkout process, the retail outlet usually goes through the details and confirms that all conditions of the promo are met before validation. If the code offers 20% off shopping carts of $200 or more, for example, the code will not be accepted if the minimum threshold has not been met. Instead, it will notify the user of the requirements needed for it to work.
Three main types of promotional codes
Three different types of promotional codes exist, i.e., free codes, private codes and restricted codes. Public codes are usually open to everyone and are typically used to entice new customers and encourage existing customers to do more shopping. Private codes are typically used to reach out to a specific group of people who are considered to be loyal to a particular brand. Restricted codes are typically used to target single users and are only used ones. For example, a restricted code can be sent to a specific customer as an apology for the delay in delivery or as a thank you note.