A discount code is a computer-generated mix of letters or numbers that customers enter at checkout to get a lower price. Used in online shopping, these promo codes help eCommerce stores attract new buyers and reward loyal ones by offering limited-time deals, free shipping, or money off an order.
Why Use Discount Codes? Benefits of Offering Discount Codes to Your Customers
Discount codes are a valuable marketing tool for eCommerce sellers. They not only boost customer satisfaction but also support your store’s growth in measurable ways. Here’s why you should consider using them:
- Increase sales, encourage repeat purchases, and attract new customers – Discount codes create urgency that leads to faster purchases and fewer abandoned carts. Offering first-time buyer discounts and personalized codes for returning customers builds trust, encourages repeat purchases, and keeps your brand top of mind.
- Clear out inventory – Struggling to sell older or seasonal stock? Flash sales or clearance codes can help move products faster and free up space for new inventory. This keeps your product lineup fresh and relevant.
- Track marketing performance – Unique codes allow you to measure the success of specific campaigns, sales channels, or influencers. For example, you can create one code for Instagram and another for your newsletter to see which one drives more sales.
- Improve Customer Satisfaction – Everyone loves a deal. Providing a discount code can leave a positive impression on your customers, which can lead to positive reviews, word-of-mouth marketing, and long-term trust in your brand.
Common Types of Discount Codes
There are many ways to structure your offers. Here are some popular types of discount codes in eCommerce:
- Percentage-Based Discount This discount gives customers a flat percentage off their order subtotal, not including taxes or shipping.
- Fixed Dollar Discount This type offers a specific dollar amount off the total purchase.
- Free Shipping This discount removes shipping fees from the order.
- Buy One, Get One (BOGO) These codes offer an extra item for free or at a discounted price when a qualifying product is purchased.
Tips for Launching Coupon Codes Successfully
Launching a coupon code campaign requires more than just offering a discount. Here are some expert tips to help you get the most value from your promotions:
Do industry research and set smart discount values
Check what competitors are offering and choose a discount that is appealing but still profitable. Most effective campaigns run for one to two weeks and offer a realistic incentive without cutting too deeply into margins.
Target the right audience
Personalized single use codes work well when sent to specific groups like email subscribers or loyal customers. This helps prevent widespread sharing and keeps your promotions more controlled and effective.
Use clear and fair terms
Always include conditions like “cannot be combined with other offers” or “only valid on orders over fifty dollars.” This helps prevent confusion and ensures the discount does not reduce your profits more than expected.
Set an expiration date or usage limit
Creating urgency is key. Set clear timeframes such as ending the promotion in one week or by the end of the month to drive quicker action. You can also limit usage by making codes valid for a set number of uses or offering one time use codes for exclusivity. This is especially useful for creators who sell digital products and want to reward early buyers or limit access to exclusive content.
Craft a clear and compelling message
Keep your promotion easy to understand. Highlight the benefit and urgency, such as “Get fifteen percent off this weekend only.” Use strong calls to action to grab attention and direct customers to a dedicated page for more details if needed.
Automate bulk coupon creation
Use ecommerce platforms like Payhip to create and manage discount codes efficiently. You can bulk create personalized single use codes that are ideal for influencer partnerships, subscriber rewards, or flash sales.
Promote across multiple channels
Make sure your codes are visible by sharing them through emails, social media, SMS, website banners, and product pages. Mention the promotion in paid campaigns or during key shopping moments like holidays and paydays for maximum impact.
Track performance and optimize
Use analytics tools or built in platform features to monitor redemptions, clicks, and revenue impact. Identify which codes and channels perform best so you can refine future campaigns for even better results.