How brands can benefit from promotional codes.
It is the consumer´s nature to look for the cheapest price or the so-called “bargains”, One only has to think back to the times when everyone would wait for the sales season to begin or cut out the discount coupons in newspapers or from the back of cereal boxes and from advertising catalogs to understand that today’s Promotional Codes are nothing more than natural progression from those coupons and that the move from offline to online was not only a logical step forward but also a very necessary one because of the high demand from consumers.
What is the purpose of the Promotional Codes?
Loyalty. Over time statistics have shown that rather than mistakenly believing that Promotional Codes can cannibalize a product or brand they can actually create loyalty. A study by WhaleShark Media y Forrester Consulting shows that digital Promotional Codes generate an increase in the number of users as well as an increase in the average spend per consumer.
The report’s data points out that e-commerce is growing year after year at a staggering rate and one of the reasons for this growth lies with the Promotional Codes, since 80% of consumers who buy online are attracted by the codes on offer. In addition, consumers claim that they don´t just buy their usual brand or products with Promotional Codes but they also use them to buy new products or brands.
Other points to note from the study are that they reduce the probability shopping cart abandonment and that those who use the promotional codes spend 18% more on average than those who don´t use them.
Therefore, when it comes to Promotional Codes, we are talking about “win to win” campaigns that are able to foster existing consumer loyalty and attract new ones, which is undoubtedly excellent news for those online businesses that have already incorporated them into their e-commerce strategy plus for those who are more reluctant to use them it shows that they are a great new opportunity to maximize sales.
For a tool to be effective, we need to keep to date with the latest cutting edge developments and to keep in mind that in this area the tendency is for the Promotional Codes to find the consumer rather than the other way around.
How should we find our consumers?
By paying special attention to social networks, email marketing and above all to mobile devices and apps because at this moment in time it is here where the largest number of users can be found. The key to reaching a consumer directly and timing it perfectly is personalization, so with a little ingenuity and good segmentation we can make promotional codes our biggest ally to boost direct sales.
For example, we can be creative such as giving top influencers in the industry our Promotional Codes to share them with their followers, why? Because a basic and essential aspect of the code is the reliability of its source; trust the influencer, trust the code.
To sum up: Promotional Codes rather than cheapening or cannibalizing a brand can actually help strengthen it. Price is of the greatest importance for any consumer and this added to the excess of supply can give those brands that understand the power of discounts a greater competitive edge in today’s market.