A promo code, short for “promotional code,” is a code that is communicated to potential customers so that they can benefit from a discount on their next purchase.
This marketing method is often used in ecommerce.
In this context, promo codes are entered by the customer just before making payment. A discount is then deducted from their purchase, which is a big sales incentive, as everybody appreciates getting good deals.
Promo codes generally entitle you to price reductions. However, they can also give rise to other benefits, such as an additional gift included in the order or free delivery.
More concretely, a promo code will take the form of a digital coupon. It contains an alphanumeric code that must be entered by the customer at the end of the purchasing process to apply the promotion.
Different types of promotional codes can be used:
- A single-use promo code can only be used by a single customer, and is valid only once. It’s also limited in time. It’s generally intended for an existing customer, to build loyalty.
- A temporary-use promo code, on the other hand, has an unlimited duration, but is valid for everyone. It’s not aimed at a specific customer. In this case, its aim is also to attract new customers and boost the company’s overall sales.
Promo codes can be supplied to customers through a variety of channels and can entitle them to multiple benefits:
- a reduction in value above a certain purchase amount,
- a discount corresponding to a percentage of the order,
- a promotion on a particular product or family of products,
- a voucher to use towards a future purchase on the site,
- free delivery, or
- the sending of a gift.
It’s important to clearly communicate the terms and conditions of the promo offer or deal to prevent customer confusion. Whatever form the promo code takes, the aim is to attract new customers and retain existing ones.
