According to Microsoft, a promotional code, sometimes known as coupon code or discount code, is made up of a combination of numbers and letters. It’s used for specific purposes, such as a holiday marketing campaign.
What are the different types of promotional codes?
There are three different types of promotional codes store owners can choose from.
Public codes – Anyone can see or use a public promo code. These are useful for enticing new customers and encouraging previous shoppers to come back for more.
Private codes – Stores use private codes to target a specific group of people. Commonly provided to loyal customers for special shopping opportunities, such as first-time shoppers, private codes are a good way to bring in new customers.
Restricted codes – A code that is restricted is targeted to a single user and can only be used once. For instance, you might send a customer a restricted code as an apology for a delayed shipment or as a thank-you for making their 50th purchase with your site.
But its not just about the customer! Promotional codes bring a wealth of advantages to your brands marketing strategy. Here are just a few of the marketing objectives you can achieve:
Increase online followers
Raise brand awareness and brand loyalty
Direct online users to your points of sale, on and offline
Motivate users to engage with campaigns, surveys and subscriptions
Collect customer information and qualify sales leads
Measure ROI to inform your future marketing campaigns
In contrast, a promo code refers to the specific, verifiable alphanumeric code which users can redeem for a discount, deal or free gift. The question is, if you can use coupons to advertize a promotion, why use codes at all?
Codes are invaluable if you need to limit the participants in a promotion, or only share it with specific users. Using codes protects you from bad actors who reuse, copy or tamper with coupons. Theyre also lightweight and adaptable for many different formats. For this reason, promotional codes are very popular in e-commerce. Usually, customers are asked to enter codes just before check-out, and platforms such as Prestashop and Magento offer tools to create promotional codes.
Finally, promotional codes are traceable. Read on below to find out why thats so important for your marketing strategy and ROI.
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