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Nov 5, 2021 | 2 minute read
written by Kirsten Aebersold
This article was last published in September 2010 and has been updated for relevancy.Also called coupon codes, voucher codes, offer codes or discount codes, promo codes are popular sales incentives offered by online retailers. They are also one of online marketing's biggest profit eaters. Discounts applied against merchandise or shipping charges reduce margin, and if associated with affiliates, reduce margin further as commissions are paid out. Furthermore, you are creating conditions where customers never pay full price.
The numbers tell the story though of how ingrained discounts and deals are in today’s shopper behavior. The digital coupon redemption value is projected to reach $91 billion by 2022.
Discounting is key to adding value, loyalty, and trust to your customers’ experience. Here are 6 best use and alternative cases for the promo code:
With so many instances of fraud and misuse, the promo code can be used to you and your customers’ benefit as part of an overarching digital commerce strategy, along with similar tactics designed to retain customers and reduce cart abandonment.There's no cut-and-dried approach to handling promo codes, but effort should be made to reduce the damage.
Learn more about promotions focused on the customer experience from Elastic Path.