How to create a promo code and track its effectiveness

by Muhammad Ahmad
promo code

Only Woobox and Vauchar come to mind . But I worked only with self-written solutions. This is when the developers add the ability to generate and apply promotional codes in the site admin panel. So you can take into account all the options: for example, give a discount for a specific route or date, put promotional codes with different conditions for different carriers. For example, in BlaBlaCar, all data on promotional codes is collected in a common data warehouse. The reports are then built on the basis of this data in the Qlik platform. We do not use ready-made services, because when we started, there were no such solutions. Therefore, we use the internal admin panel to create and analyze promotional codes. It depends on whether we make the same promotional codes or individual, for each user. We generated individual tk maxx discount code simply in Excel. Set up the formula and generate it.

How to prepare for the launch of a promotion with promotional codes

It is important to test the action system from the very beginning and take into account that things can go wrong. You should be ready to launch:
  • budget – for example, how much we will spend on a promotion, printing coupons, launching targeted advertising;
  • mechanics – for example, how long promotional codes will be valid or how to apply an electronic coupon to receive a discount;
  • communications – for example, who is responsible for tracking promotional codes, and who is responsible for issuing promotional items;
  • analytics for real-time tracking – for example, how many coupons were used out of the total amount, or how much conversion of promotional codes into sales.

When preparing a promotion, it is worth considering the following questions:

  • whether the client will be able to reuse the promo code in case of order cancellation;
  • how many people can use one promotional code at the same time;
  • whether the payment system and the site will collapse if everyone goes to the promotion page at the same time;
  • how the discount will affect your relationships with suppliers and competitors;
  • is the call center aware of your promotion;
  • are you able to process all received orders;
  • Does the discount work the same on the website and in the mobile application?
It is also important to notify all team members who are involved in the promotion – for example, to remind the warehouse before Black Friday that due to the huge number of orders, branded packages need to be prepared. We had a case when we did not alert the grocery team about a night sale. As a result, they were greatly frightened by the night invasion of customers. The team mistook this for a hacker attack. In the process, I advise you to pay attention to the activity of customers. Perhaps, if promotional codes are not used, users simply do not understand how to do this.

Most often, when entering promotional codes, they make the following mistakes:

  • try to enter the same promotional code twice;
  • they write a promotional code in Latin in Cyrillic;
  • confuse case;
  • add spaces at the beginning or end of the promo code;
  • trying to use expired codes.

What is special about physical promo codes

I had a project where the user received a promotional code in a letter, and the manager had to tell it by phone. It seems like an understandable mechanics, but sometimes people said whatever they got – for example, “two-zero-two-zero-spring” instead of the code “Spring2020”. Therefore, it is important that such physical codes are extremely simple. We also used a sound promotional code for advertising in the subway. The code appeared on the screen and was additionally voiced; it had to be entered on the website. It didn’t work very efficiently, but it was entered without errors. I believe that such things are not done from a good life. The business has some kind of advertising: on the Internet, offline, on the streets, in the form of flyers or leaflets in elevators. And the business wants to know how many people from this ad have made it to the checkout. Say a promo code, get a bun, and we’ll find out what kind of advertising works. But this option is not ideal either – for example, people reach the purchase and forget about the promo code, or pass these promo codes to their friends.

Do promotional codes work

There is an interesting case from Busfor from last Halloween. On the platform of the PopMechanic service, we launched the “Wheel of Fortune” for one day, in which the user left an email address and could get a discount on the first bus ticket: $ 2, $ 3, 5% and 10%. The stock had the following results:
  • 10% of new site visitors converted to subscribers. So we got 3 thousand new contacts to the database.
  • 8% of new site visitors used the promo code – 2,400 users.
What is interesting about this case is that we received letters in the style: “I cannot calculate which is more profitable – $ 2 or 10%”. Therefore, at the next promotions, we simply gave promotional codes with discounts for a certain amount. This makes it easier for customers to understand the benefits. There was an interesting case – a chain of restaurants with delivery. With her, we decided to experiment and launched an interactive email: puzzles, puzzles, mindfulness games. Letters were sent 1-2 times a month. The answer to the riddle or rebus was a promotional code that could be checked in a special field in the basket on the restaurant chain’s website. If the answer (promo code) is correct, then the user received a free dessert or bun.

We compared two email strategies for a year: only with “game” strategies and only with promotional emails. The first ones won in all respects:

  • Open rate – 14.7% versus 8.7% for promotions.
  • CTOR (ratio of unique clicks to unique message openings) – 15% versus 6% for promotions.
  • RPME (income per thousand emails sent) – $ 59 versus $ 33 for promotional emails.
Both promotions were advertised on Facebook and Instagram, and coupons with 15% discounts were also handed out across the coffee chain. In total, we handed out 500 coupons, each with a barcode. Cashiers cut off the barcode in order to track the effectiveness of the action later. 93 people came to us with coupons and made purchases in the store. Read More 

Related Posts

Leave a Comment