Promo codes, also known as voucher codes and promotional codes are, as we mentioned in our previous post “The promotional code, the greatest sales partner a brand can have” a natural progression in the move to shopping online. What used to be known as “ cut out coupons”, printed in newspapers and magazines for consumers to cut out and use in the shop, are today simply alphanumeric codes inserted into the online shopping process.
Their use has become prolific, a recent report by Valassis shows that during 2019 nearly 90% of consumers used some type of discount coupon whilst shopping online, their widespread use has thrust Promo codes into a privileged position, a prominence which brands need to exploit.
Promo codes have shown themselves in recent years to be a formidable tool in helping sales grow in every type of business:
Nevertheless, many brands continue to see promo codes as having a negative overall effect claiming that they devalue a brand, cannibalize sales or that they drive profit margins downwards. So, to contrast these arguments, we have compiled some statistical data from a number of different studies carried out in the last year. These datapoints analyse how promo codes influence the customer’s journey. Using this data, brands can begin to understand how the market has become driven by the demands of the ever increasingly empowered consumers and have some insight into its future.
89% of users say that by using coupons they have saved a lot of money.
86% of consumers claim they are influenced by promo codes before deciding which brand to buy either in terms of products they have already tried or new products.
The use of promo codes is set to increase by 68,4% by 2022.
Worldwide, the mobile coupon industry will grow by 56.5% by 2025.
Source Orian Research.
32% of consumers prefer to receive their coupons on their mobile.
92% of users look for a good discount, even when they are not intending to buy.
Source: Hawk Incentives
83% of consumers say that coupons have changed their buying behaviour.
68% of consumers argue that promo codes promote brand image and brand loyalty
Source: Ready Cloud
50% of users that receive promo codes from a brand are more willing to visit the brand´s website.
Source: Ready Cloud
It is clear from the above data that the motivation for consumer’s purchase is influenced by promo codes, therefore, the question you need to be asking is not whether to use coupons or not, but how to use them strategically so they can help grow your business. However, it is equally important to understand exactly how they can work effectively with the different platforms you use in order to generate both value and volume. Achieving that goal that is not always as easy as it sounds, we would advise you to seek information from experts in the sector, those who can help you make the most out of promo codes.