Promo codes are popular promotional strategies employed by marketers and sellers all around the world to get customers to make the final purchase. Over the years promotional codes have become very popular, to the extent that marketers send them over to customers through emails and newsletters, just to help them make that purchase.
But is the discounted revenue on the product worth the purchase? Would consumers have bought the product otherwise? We take a look at all of these and then some more below.
Promo Codes’ Effectiveness, the Evidence
Promo codes for basically anything can be found online, so long as you know where to look. Seeing how popular the strategy is, it must follow that it does produce high results.
This, itself, is more than evidence. Yes, marketers tend to imitate a lot, and may even imitate pseudo-efficient strategies just because their competitors are doing it, but in the case of promo codes, the results are not only evident but also built upon a pretty solid principle: which is the human propensity to vacillate.
All Too Human
As humans, thanks to the numerous available resources around us, we sometimes tend to get spoilt by options. And so we try our best to make the final decision based on other factors available – and this is where promotional codes come in.
Imagine a consumer finding it hard to choose between two competitors, and then, all of a sudden, receives a promotional email from one of them, and inside this email is a promo code for a twenty percent discount.
All of a sudden, the choice isn’t so hard anymore. That’s the power of promotional codes. It has also been found that 39% of shoppers with promotional codes tend to spend more than they normally would.
Another logical question to ask about the promo codes is along the lines of, whether is it worth it to sacrifice the discount to get the final purchase. Well, the answer to this is not so straightforward and may depend on the particular pricing mechanism that each business employs.
Businesses that go with competitor-based pricing, can afford certain flexibility while still ensuring profits. And for this, promotional codes can be a very good marketing strategy.
For those who go strictly on cost mechanisms, the flexibility may not be as much as the former. Still, in all cases where volume sales promise a major profit margin, promo codes can make sure the desired volume is attained easily.
An example of the latter is casinos providing promo codes for Bet9ja, this provides a major incentive while resulting in an overall profit for the business.
Not the Final Solution
As we have seen, promo codes are great tools in a marketer’s arsenal. They are effective as a marketing strategy because they provide that push that customers need to make their final decision. But, of course, it would be a mistake to assume that the introduction of promo codes will be the indubitable solution to all business woes.
Promo codes can provide a final push, but before that can be possible, or effective, every other aspect must be as solid as it can get.