Offering promo code or not depends on a number of factors, involving the suitability to your business model and what you’re trying to achieve. That may seem complex, but the simple truth is that coupons are advertising. That means you’re paying to attract potential customers. So the question is not whether you should use promo code, but instead: How can you offer coupons strategically to evolve your business without spending too much of your profit margin? Read the article till the end to find out what is pros and cons of promo code as well as share some proven-to-work promo code tips in Magento 2
Promo code is a random combination of letters and numbers that insert the code at checkout to have a discount on a current purchase or some other profit like free shipping. Besides saving some money for a customer, it is also a great marketing tool to attract more attention to the online store and drive traffic. From the boost in sales to brand reputation improvement, promo codes can be a missing thing that will help your online business move towards success
1. Advantages and Disadvantages of Offering Coupons
- Easy and quick to implement natively in Magento or using Magento Extensions
- Attract new customers
- Build customer loyalty
- Increase customer acquisition
- Increased conversions
- Quickly move stock
- Meet sales goals
- Meet customer expectations
- Provide a competitive edge
- Cut down margins and profitability
- Decreased conversions outside of sale periods if you train visitors to wait for offers
- Tendency to drive non-loyal (price-driven) customer
- This promotional strategy may not be sustainable
- It may lessen the value of your offerings
2. How to use the Promo code in Magento?
There are many ways you can utilize sales, offers, discounts, and deals to boost customer loyalty, acquisition, and conversions.
- Weekly/monthly discounts
- Prelaunch offers
- Holiday and seasonal deals
- Abandoned cart offers
- Email/newsletter subscription offer
- Incentives for liking, following and sharing on social media
- Referral promos
- First-time shopper offer
- Minimum purchase discount
- Exclusive social offers
- Customer loyalty offers
- Exit intent offer
- Retargeted promotions
- Influencer offers
- Customer loyalty program membership incentives
- Offers for purchasing online
- Coupons for purchasing in-person
- Event attendance offers
- Customer milestone discounts
3. Best Tips to Use Promo Codes in Magento
Using promo codes for your Magento store can be a powerful weapon in your conversion arsenal to increase customer loyalty. But, used haphazardly, you can do serious damage to your brand or, worse, become useless. Keep reading the posy and learn how to enhance sales with promo codes using the best tips listed below.
Tip 1: Target the right audience
Do not send your promo codes to everyone — such a plan won’t work! You’ll only waste money and time. The best strategy for you is to work on the target audience.
We suggest two effective techniques: personalization and segmentation to ensure that the promotion campaign reaches the right customers. Utilize the location, demographic information, history of transactions, and other user data to group your customers. From that, you can generate a number of personalized promo codes and send them to groups. You can send promo codes to shoppers who celebrates a birthday. A birthday coupon is a special discount that makes your customer feel valued as well as shows that you care. Researching the history of your customers’ transactions, you can also send them unique promo codes for items related to products they’ve bought before
Related post: Customer group: How to configure it in Magento 2?
Tip 2: Set promotion time
If you attract customers by providing endless sales, you won’t make a profit. When shoppers see that you always offer discounts, they don’t have a feeling of urgency. They can always purchase something in your e-store for lower-price and will only make a purchase if appropriate. So, we recommend providing a promotional time. You need to inform your customers about the start and the expiration date of the discounts.
Tip 3: Utilize terms and conditions
Generate a list of terms and conditions to explain all the details info related to your promo codes and protect your business from complaints and unexpected problems
- Set a list of items appliable for discounts.
- Provide information about the start and the expiration date of the discounts.
- Make it clear the detail about the promo code redeemed in combination with other discounts and sales.
- Define the return terms for goods purchased with a promo code.
- Make it clear in what areas or countries free shipping promo code works.
Tip 4: Provide different promo codes
You understood the importance of the right time and products when offer promo codes as well as how to reach the right customers. So, now we need to determine what to provide. Many users are concerned about big discounts but some find more interested in free shipping or delivery. So, we recommend you to make an experiment with different kind of promo codes to discover what operates best with your customer groups. You can try out free shipping promo code for one group of customers, 10% or $10 off a purchase for the others, and track the results and revenue made from both.
4. How to set up Promo code in Magento 2?
Step 1: Generate a Specific Coupon
This way is implemented in the Cart Price Rule settings.
- On the
Rule Informationtab, under
General Information, transfer
- Restrict how many times the coupon can be redeemed in the Uses per Coupon & User per Customer.
- Uses per Coupon sets the number of times the promo code is utilized.
- Uses per Customer sets the number of times the coupon code is used by the same client.
- If there are many cart price rules at once, you should set up the active time and priority to manage them better.
- Make sure
Saveto activate the coupon code.
Step 2: Publish a Mass of Coupons
This way is implemented in the Cart Price Rule settings.
- At the
General Informationpage, mark the
Use Auto Generationcheckbox to create a mass of coupon codes after saving the rule.
Cart Price Rule, select
Manage Coupon Codestab and do the following step
- Set up the
Coupons Qtyto the number of coupons you want to create.
- Insert the number for the
Code Length, the length keep out the prefix, suffix, or separators.
- Choose the
Coupon Formatfrom the following types: Alphanumeric, Alphabetical, and Numeric.
- Put the
Code Prefix– the beginning part of the code if needed.
- Put the
Code Sufix– the end part of the code if needed.
- Set the
Dash Every X Characterto make the codes simpler to read. For example, the number 3 is inserted into that field, the codes will look like: xxx-xxx-xxx.
- Click on
Generatebutton to launch multiple coupon codes and they are displayed on the table below.
If you need any assistance with your configuration, contact with our Magento 2 Developers
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