Do you know when the first coupon code was introduced, and which company was responsible for it? It was our favourite beverage company, Coca-Cola. They distributed the first ever free promo code in 1887. Little did the company know that they played a moved that was going to shape into a coupon trend in the future.
With this free promo code, customers can get a complimentary glass of Coke at any dispensary. Coke was initially launched only a year back. Therefore, with the help of this worthwhile free promo code, the company benefited a lot. Who doesn’t love free stuff? That’s one question I’m pretty sure the marketing team would have used to implement this marketing strategy. Eventually, not only did it encourage more people to start buying their products, but it also motivated vendors to step into the market by supplying this drink.
In fact, between the years 1894 and 1913, it was estimated that one out of every nine Americans got to drink a free Coke, with a total of 8,500,000 free drinks. The success of strategy helped the company serve the product in every state by 1895.
After evaluating the success of a single coupon strategy, many brands throughout history adopted this tactic and introduced many discounts and free promo code vouchers throughout the year. Companies that understood this technique eventually also developed a better brand image by making their consumers happy. If you still don’t think it’s worth a shot, here are a few more convincing scenarios.
Discount Codes give you Happy Customers
With competition rising in every industry there is, you can’t merely rely on your old tricks to keep your customers glued to your products. Eventually, a day may arrive when they’ll buy from a competitor. If you think that isn’t true, take a look at Nokia. The likes of Apple and Samsung grounded the all-time leading mobile company as they adopted new technology and marketing tactics to get ahead of Nokia.
You wouldn’t want your business to end up like that. Though technology is another chapter, customer satisfaction is a crucial aspect. If you fail in satisfying your consumers and making them happy, you can expect them to run off. What better way to make them smile than to give them freebies or “buy one get one free” coupons?
A Boost in Your Overall Revenue
According to NCH Marketing Services in 2017, out of the 293 billion consumer goods coupons, 80% were redeemed. That concludes that consumers saved around $3.1 billion. Though you may see this figure a reduction from your profit, that’s not the case. By introducing a coupon, you merely reduce your margin. However, the boost in sales that you experience due to coupons eventually reduce your average cost. With a reduction in cost, even a slight drop in your margin can never stop you from achieving a higher annual profit.
If that weren’t the case, top brands around the world would never show their faith in couponing. Apart from that, even small businesses have started diverting their investments from other advertisement techniques for introducing free discount codes.
Discounts and Coupons Reduce Your Rate of Cart Abandonment
How many times have you bought from a brand for the first time without any discount? Most shoppers, avoid shopping at new brands as the risk is significantly higher. However, a slight discount or a free coupon code can change your mindset and convince you to go for it.
Hawk Incentives research shows that 89% of consumers have declared price as the most crucial factor in influencing their purchase decision. That clearly indicates that even if you are a reasonably new or small brand, you can manage to survive and sell your products by keeping your prices low. Also if you don’t wish to do that to maintain your high price persona for the future, you can introduce free promo codes or discounts to encourage buyers to come to you.
As long as you find success in maintaining your product’s quality, coupon redeemers may come back to you even when your products are at full price.
Promotions Are Key Purchase Influencers
Studies have shown that around 90% of adults are influenced by advertisements when it comes to purchasing products. That means with the help of free promo codes and discounts your business can convince potential prospects to add a specific product in their carts even if they had no plan of buying it. Apart from that, you can also encourage them to test and try reasonably new products if an introductory discount is available. Last but not least, this marketing strategy can also enhance a consumer’s regular budget by making them exceed their regular order total.
You can think of discounts as a way of soft selling your products. In most cases, your attractive coupon codes can make it hard for a potential customer to avoid buying a specific product.
The Power and Price of Free
When it comes to offering discount codes, buy one get one free offers, and free voucher codes, you can’t deny the fact that when you see the word ‘Free’ somewhere, you can’t stop yourself from grabbing it.
Consumers have always shown more value to products that are priced zero. Even if you know that the quality of the product will still be the same when it’s priced higher, prospects will always prefer the priced zero version. – It’s pretty obvious because they wouldn’t have pay!
On the other hand, when we talk about the power of free products, you won’t be surprised to consider them as attention grabbing magnets that lure prospects in massive numbers. Even if you offer a discount, consumers tend to give more importance to free ones. Therefore, if you wish to maximise exposure for your products, free promo codes can be considered as the ideal tactic.
By now every business should have been convinced that free promo codes can help you achieve your desired goals. Therefore, we advise that you start discussing this strategy with your marketing teams to reach an agreement and initiate a game-changing plan.