There are many tried and tested marketing methods that businesses use, and not all are effective. One that I consistently see being overlooked is promotion codes. These are an especially simple concept, and any business can easily implement them, whether you run an e-commerce store, physical retail store or services business.
In the guide below, I show you the long-term benefits promotions codes provide and why they can be an integral part of your marketing campaigns. This includes their cost-effectiveness, and the way in which they lead to increased exposure and customer loyalty.
A simple introduction to promotion codes
Let’s look at a few examples to demonstrate. Take a look at casino promo codes assembled through casino.org – this site displays a variety of promotions available at online casinos. These can be offers like free spins on slot games, welcome bonuses for new customers, and deposit bonuses. Codes like these help entice new customers to the online casinos but also retain existing customers by giving them benefits.
Alternatively, let’s say you have an e-commerce store selling electrical goods. A promo code could be a 5% discount on purchases over $50, free shipping or a seasonal Boxing Day sale where all goods have a 10% discount. These offers provide a range of long-term benefits, including shifting old stock, prompting higher-value purchases and generating sales during more popular shopping periods. For more exciting deals, visit EarthWeb that provides comprehensive lists of products and services from different retailers worldwide..
The long-term benefits of promotion codes
You should already start to see some of the potential benefits of promotion codes but I’ve listed the main ones below, including improved exposure and customer loyalty.
Improved business exposure
Promotions will help create far more exposure than something like a press release could. Word of mouth and social media sharing will make sure that promotion codes you run will spread like crazy. You should see a sustained increase in brand mentions, website traffic, social media shares, and ultimately, purchases and inquiries. `
Increased customer loyalty
If customers see that your business offers great value for money and tries to offer consistent promotion codes, they will keep coming back. They will view yours as a business where they can do cost-effective shopping and this is something that’s becoming increasingly important in times of global crisis and economic uncertainty.
Cost-effective marketing
Promotions codes don’t cost much to produce. You can easily distribute the codes via existing marketing channels, such as your website, social media platforms and email marketing lists. All it takes is to write some new marketing copy to distribute via these channels, compared to creating a new marketing campaign from scratch.
The harder part is making sure that the promotion you offer still makes the underlying product or service profitable. For example, if you only have a 5% profit margin on an item you sell, and you offer customers a 10% discount, that results in a 5% loss.
A promotion loss or break-even assessment can be offset by other products, though – don’t just view everything you sell in black and white. For example, you could give a 5% discount on a particular product and break even because this could lead to an increase in simultaneous sales of complementary products that you make larger margins on. As long as the overall figures increase, promotion codes work.
Improved brand image
Building on the above exposure point, promo codes can also lead to an improved brand image. People will start thinking: “Ah yes, that’s the company where I got that great offer, I’ll shop there again.” You build an association of value, quality and customer respect that does wonders for your brand image.
Greater ability to market specific products
Promo codes are great for new product launches, or if you want to promote a specific item or service that isn’t selling as well as you’d like. Clothes retailers such as GAP do this all the time and you will see promos at the end of a season to get rid of the leftover stock they may have.
Promotion codes are a no-brainer as a marketing tool
As you can see, promotion codes can be incredibly powerful when done right. They garner improved customer loyalty and keep existing customers coming back. Not only that, but they can be a cost-effective marketing tool to bring in new customers.
As people see you willingly offer discounts and promotions, your brand image improves too, as it shows you recognize the need to be competitive and offer realistic prices. You can also easily target specific products, such as during new product launches, or products that aren’t selling as well as you’d like.
The key with promotion codes is to make sure that both you and the customer benefit. The customer must get some type of valid discount or benefit from using the promo code. However, you must still make it profitable, or it must lead to some type of positive result for your business.
