Coupon Codes for Dummies

Coupon Codes are also termed coupons, promo codes, promotional codes, voucher codes and discount codes. These are alphanumeric strings that are provided by online stores to lure shoppers to buy at their online store. This is one of the most well-known marketing tricks. The discount can be applied to a single product or a specific category of products or even as a sitewide offer. This post will explain how coupon codes work.

How do Coupons Work?

Primarily, one has to know that a discount is provided to an online shopper using a coupon code. This discount can be in the form of a fixed amount or a percentage of the price of the product. Apart from the discount, coupon codes can also be an offer for the free shipping of the parcel. The main intention here is to give the shopper a reason to buy from the store.

What makes Coupon Codes Work?

A store issues a coupon code to lure customers to shop from their website. This turns out to be a win-win situation for the buyer and seller. The buyer gets the product at a discount and the seller completes a sale.

Apart from getting new customers, coupons can also be a great tool to get back old customers. The simple reason is that any offer is welcome for a buyer and it creates an impact on a buyers shopping pattern. It a common human nature to feel happy when they use a coupon and this creates a bonding with the store.

How to use a Coupon Code?

After the promotion code is entered during checkout, the discount amount is automatically calculated and the shopping cart value is updated. There is always a condition attached to the coupon code, for example, if the discount offer is 20% then it might have the condition that the minimum cart value has to be $80 or more. By this, it means that the coupon code is only valid if the shopping cart total is $80 or more. The coupon can be attached to a specific product or a product or a category.

Multiple Coupon Codes

A store can give out multiple offers and coupons. This gives customer options. Here the example of multiple coupons can be as follows:

  • 10% off Entire Order
  • 20% Off on Orders above $150
    Multiple offers like these can help a store sell more and in turn, helps the customer save more. As mentioned above, this too is a win-win situation for both.

Types of Coupon Codes

Nowadays there are numerous types of coupons that are released by sellers. Three of the most common ones are explained below:

Public Coupon Codes: These codes can be redeemed by anybody. Any shopper can find this coupon and used it to get an instant discount on their purchases. These are usually released by sellers to lure new customers and get existing customers to come back and shop again.

Private Coupon Codes: These codes are given out by sellers to a selected group of customers. Its usually given to loyal customers for a specific deal. The code may be applicable for buying a product the first time.

Restricted Coupons: These are special codes that are created specifically for one customer and cannot be used more than once. These are sent to specific customers on their special days, like Birthdays or Anniversary. It can also be sent to a customer in the event of a delay in delivery as well as a thank you for shopping at the store.

This post is just to give you a basic idea of the functioning of a coupon code and the benefits of using these both from the point of view of the buyers and as well as the seller.