In the increasingly competitive world of commerce that we live in today, there are numerous factors that can influence the success or failure of a product or service. As the market becomes ever more competitive and cut-throat, sales and marketing teams are always looking for new ways to gain an edge over their competition.

One of the main ways in which they achieve this is by giving customers discounts on select products or services. However, with the rise of digital shopping in recent years, these discounts have evolved into promo codes, which are the digital equivalent of what used to be coupons. According to a report, more than 59% of shoppers search for promo codes online before making a purchase. But how exactly do promo codes work? And how can you use them to boost your marketing efforts for your online business? Read on to find out.

What Are Promo Codes and How Do They Work?

Promotional codes (also known as discount codes) are essentially a combination of numbers and letters that a customer inputs into a website or mobile app to enjoy a benefit or redeem a discount that is offered by a business. Here is an example of a list of betting promo codes in Ontario that fans of online gaming can take advantage of.

They typically come in three varieties, namely:

• Private Codes

These are specifically customized for specific groups of people or situations, for instance, customers who haven’t shopped from a business in a long time or as a treat to customers whose birthdays fall on the month when the promotion runs.

• Public Codes

These promo codes are available for all customers although they are usually limited to one-time use. Businesses generally use public codes as an incentive to attract new customers and increase their sales.

• Restricted Codes

Restricted promo codes are usually tailored for the specific customers to whom they are sent. The most common reason why a business might send a customer this type of promo code is as an apology to compensate for a poor shopping experience.

How Can You Use Promo for Your Online Business?

There are several ways in which you can leverage the power and effectiveness of promo codes to grow your business. They include:

• Attracting New Customers

As highlighted earlier nearly 60% of shoppers search for promo codes online before purchasing products or services. This isn’t shocking at all since every shopper is always looking to find the best deal possible and potentially save money on a purchase. As such, incorporating the use of discount codes in your marketing can help you acquire new customers.

• Rewarding Loyal Customers

Few things are as exciting to customers as receiving an end-of-year voucher thanking them for being one of your best shoppers. Promo codes allow you to strengthen your engagement with your customers and retain them in your business. This can translate into high customer lifetime value (CLTV).

• Increasing Sales During Peak Shopping Seasons

Shoppers experience a flurry of attention from different brands during shopping seasons such as Black Friday and holidays such as Christmas. So if you’re looking to remain competitive and boost your sales during these months, you might want to consider offering attractive discount codes.

• Creating A Referral Program

Referral programs are powerful tools when it comes to generating organic traffic to your business. Consequently, offering credit to your referrers and referees can incentivize them to shop more at your online store.

In Closing

Promo codes are fantastic marketing tools that not only help you acquire new customers but also solidify the loyalty of your existing ones. So, if you haven’t used them in your online store, you might want to start now.