Promotional activities are not just about reducing prices; they are a "growth strategy" that drives brand visibility and increases sales.
Don't think that promotional activities are only about lowering prices; that is a big misconception! Successful promotional activities require in-depth thinking and planning from a strategic perspective to effectively attract consumers and increase sales. In fact, offerings like Shopee's "free shipping vouchers," Starbucks' "buy one, get one free," and discounts from food delivery platforms are all part of the businesses' "growth strategies"!
What are the objectives of promotions?
Free shipping vouchers: Increase the revenue per order (also known as average order value) while reducing shipping costs.
Buy one, get one free: Compared to offering a 50% discount, a buy one, get one free promotion is more likely to attract new customers and stimulate the purchase of related products.
Discount codes: Encourage the purchase of specific products, promote new items, or deplete inventory.
Now, let's focus on how to use discount codes to increase customer acquisition opportunities!
Why is it necessary to provide discount codes?
Offering promotional discount codes and direct discounts are both common promotional methods. Although both methods involve price reductions, discount codes are more effective in capturing consumers' attention. Why is that? Unlike direct discounts, the price reduction brought by discount codes can only be enjoyed by consumers who have access to the code. This approach allows consumers to participate in the interactive process, experience their own cleverness and sense of achievement in saving money, and ultimately enhance their purchase intent and brand loyalty.
When is the appropriate time to provide discount codes?
New customer promotions: Offer special discounts to individuals who are new to your brand, making them more inclined to make a purchase on your website during their first visit.
New product launches: Use discount codes to attract consumer attention to new products and enhance their purchase motivation.
Brand anniversary celebrations: During your brand's anniversary, incorporate discount codes that include your brand name or values to increase brand recognition.
Influencer promotions: Provide each collaborating influencer with a unique discount code, making it easier to track their referral effectiveness and precisely target the intended audience.
How can discount codes be distributed most effectively?
Email Marketing (EDM): According to a survey by Business Insider, email is the most effective channel for attracting consumers to use coupons. Compared to digital advertising, the advantages of EDM are "free and audience-specific." By planning customized offers for different types of consumers, you can stimulate conversions more effectively.
Social Media: Distribute discount codes on platforms such as Facebook, Instagram, LINE, and other social media channels. This approach is convenient, fast, and highly interactive. You can encourage consumers to share on their social profiles to obtain the discount code, creating naturally occurring word of mouth and viral effects.
Digital Advertising: Include discount codes in your Facebook, Instagram, and Google ad images. This not only boosts click-through rates but also helps you identify which channels attract users more effectively with the discount message.
Influencer Marketing: Collaborate with Key Opinion Leaders (KOLs) or influencers to provide exclusive discount codes to their loyal followers. You can also add UTM codes to the referral URLs to effectively evaluate the influencers' ability to drive sales and manage profit-sharing.
In-Store Distribution: In addition to online channels, don't miss the opportunity to interact with customers offline. You can create small cards with the discount code and a QR code linked to your store's website. These cards can be placed in physical stores, and you can also collaborate with friendly businesses to help promote them.
How to plan discount code strategies?
Discount codes can be divided into two types: "percentage discount" and "fixed amount discount."
Percentage discount: Calculate the discounted price by multiplying the order amount by the discount percentage. Consumers can directly see the discount rate, which gives them a clear and appealing sense of value, thereby stimulating their purchase intention.
Fixed amount discount: Deduct a certain amount directly at checkout. Consumers can see how much money they have saved, and this type of discount can be applied to a wider range of products, with only the minimum spending requirement to consider.
Limited quantity discount codes can create excitement among consumers. Why? Because of the limited, it grabs their attention and generates a fear of missing out (FOMO) effect, increasing the chances of making a purchase.
Use interesting alphanumeric combinations or target specific qualifications (ID numbers or names) to come up with fun discount codes! The company can design its own unique discount codes. For example, during Valentine's Day, you can send out fun discount codes related to couples, dates, being single, or celebrating love to increase consumer engagement.
Combine discount codes with festive to create exclusive offers that are only available during that specific holiday. This captures consumers' attention and stimulates buying interest. Some people just love celebrations and are always looking for reasons to indulge. So, it's not only about specific holidays; regularly introduce new themes to keep customers coming back.
rezio's provides new directions for consideration. Everyone can refer to the discount code manual and set up different promotional discount codes to encourage customers to place orders without hesitation. Even the entry-level plan also included the discount code feature, so come over and apply, use the strategy to attract more customers! Apply for a free trial now.