A Discount Code, exactly as the name suggests is a Coupon code that’s provided to Customers to avail of various discounts on their total order value. They are also known as promo codes, coupons, offer codes, etc.
4 Different Types Of Discount Codes
A discount code is primarily used by the customer at the time of check out to avail any percent of discount on the product’s total value. When companies provide the product at a discounted rate, the buyer’s attention is automatically drawn towards the product and this creates more chances of a sale being successful.
Listed below are Different Types of Discount Codes and how they’re applied in the process–
Amount Discount– These are typically fixed as a discount of a certain amount of money on the total order with or without a baseline minimum purchase. For example INR 200 off on a minimum purchase of INR 1500 or INR 200 off on no minimum order value. These are known as fixed amount discounts.
Discount With Percentage– We’ve all seen a 10% 20 % or even 90% discount offers on different e-commerce sites. These are known as percentage discounts and they are usually applied to your total order value depending on whether there is a minimum amount purchase requirement. For example a 20% off discount on a purchase of INR 2000 and above or a sitewide 10% off for a day. There are various methods and ways these codes are offered and availed depending on different sites.
Free Delivery Discount– Another popular discount code is that of a free delivery and shipping discount. For example, some websites offer free shipping and delivery on a minimum order value or free shipping on special days like weekends and anniversaries or birthdays.
Promo Codes– These are generally used as a marketing tool by businesses when they tie up with ambassadors and influencers to advertise their product and provide them a promo code for their followers to use on their website. This way they can keep track of the traffic as well as garner some popularity through the influencer.
Discount codes can be personalized as per the individual customer (if they are a registered user of the website) or they can be used more publicly through announcements and advertisements. A good example of a discount code is a personalized discount code that is offered to the customer on their birthdays – this creates the impression of a very personalized experience and also helps in building a better and stronger customer base for businesses.
The discount codes can be promoted on the page, promoted through push notifications, SMS alerts, or subscription emails. They can also be announced through the Company’s social media handles like Instagram pages and Facebook pages for a wider reach. The idea is for customers to notice the discount code which would ultimately result in an increase in sales.
Why Do Businesses Offer Discount Codes?
There are many reasons why e-commerce websites and businesses offer discount codes.
- They are a marketing strategy and are used to attract customers to their website.
- They generate good traffic because people love discounts
- The idea of saving money appeals to shoppers of all type
- They help in increasing interaction with the customers since people are drawn to discount codes and coupons
Discount codes are one of the most popular promotional tools adopted by brands, companies, and businesses to increase traffic, increase sales and create a buzz around their businesses. They work by appealing to the psyche of the buyer who is tempted to buy a product based on the discount being offered to them.