Magento Promo code: Pros & Cons and how to use it in Magento 2

Offering a promo code or not depends on a number of factors, involving the suitability of your business model and what you’re trying to achieve. That may seem complex, but the simple truth is that coupons are advertising. That means you’re paying to attract potential customers. So the question is not whether you should use promo codes, but instead: How can you offer coupons strategically to evolve your business without spending too much of your profit margin? Read the article till the end to find out what is pros and cons of the Magento Promo code as well as share some proven-to-work promo code tips in Magento 2

A Promo code is a random combination of letters and numbers that inserts the code at checkout to have a discount on a current purchase or some other profit like free shipping. Besides saving some money for a customer, it is also a great marketing tool to attract more attention to the online store and drive traffic. From the boost in sales to brand reputation improvement, promo codes can be a missing thing that will help your online business move toward success

1. Advantages and Disadvantages of Offering Coupons

Pros

• Easy and quick to implement natively in Magento or using Magento Extensions
• Attract new customers
• Build customer loyalty
• Increase customer acquisition
• Increased conversions
• Quickly move stock
• Meet sales goals
• Meet customer expectations
• Provide a competitive edge

Cons

• Cut down margins and profitability
• Decreased conversions outside of sale periods if you train visitors to wait for offers
• Tendency to drive non-loyal (price-driven) customer
• This promotional strategy may not be sustainable
• It may lessen the value of your offerings

2. How to use the Magento Promo code?

There are many ways you can utilize sales, offers, discounts, and deals to boost customer loyalty, acquisition, and conversions.

• Weekly/monthly discounts
• Prelaunch offers
• Holiday and seasonal deals
• Abandoned cart offers
• Email/newsletter subscription offer
• Incentives for liking, following, and sharing on social media
• Referral promos
• First-time shopper offer
• Minimum purchase discount
• Exclusive social offers
• Customer loyalty offers
• Exit intent offer
• Retargeted promotions
• Influencer offers
• Customer loyalty program membership incentives
• Offers for purchasing online
• Coupons for purchasing in-person
• Event attendance offers
• Customer milestone discounts

3. Best Tips to Use Magento Promo code

Using Magento Promo code for your Magento store can be a powerful weapon in your conversion arsenal to increase customer loyalty. But, used haphazardly, you can do serious damage to your brand or, worse, become useless. Keep reading the post and learn how to enhance sales with promo codes using the best tips listed below.

Tip 1: Target the right audience

Do not send your promo codes to everyone — such a plan won’t work! You’ll only waste money and time. The best strategy for you is to work on the target audience.

We suggest two effective techniques: personalization and segmentation to ensure that the promotion campaign reaches the right customers. Utilize the location, demographic information, history of transactions, and other user data to group your customers. From that, you can generate a number of personalized promo codes and send them to groups. You can send promo codes to shoppers who celebrates a birthday. A birthday coupon is a special discount that makes your customer feel valued as well as shows that you care. Researching the history of your customers’ transactions, you can also send them unique promo codes for items related to products they’ve bought before

Related post:

>> Customer group: How to configure it in Magento 2?

Tip 2: Set promotion time

If you attract customers by providing endless sales, you won’t make a profit. When shoppers see that you always offer discounts, they don’t have a feeling of urgency. They can always purchase something in your e-store for a lower price and will only make a purchase if appropriate. So, we recommend providing a promotional time. You need to inform your customers about the start and the expiration date of the discounts.

Tip 3: Utilize terms and conditions

Generate a list of terms and conditions to explain all the details info related to your promo codes and protect your business from complaints and unexpected problems

• Set a list of items appliable for discounts.
• Provide information about the start and the expiration date of the discounts.
• Make clear the detail about the promo code redeemed in combination with other discounts and sales.
• Define the return terms for goods purchased with a promo code.
• Make it clear in what areas or countries the free shipping promo code works.

Tip 4: Provide different promo codes

You understood the importance of the right time and products when offering promo codes as well as how to reach the right customers. So, now we need to determine what to provide. Many users are concerned about big discounts but some find more interested in free shipping or delivery. So, we recommend you to make an experiment with different kinds of promo codes to discover what operates best with your customer groups. You can try out free shipping promo code for one group of customers, 10% or $10 off a purchase for the others, and track the results and revenue made from both.

4. How to set up the Magento Promo code?

Step 1: Generate a Specific Coupon

This way is implemented in the Cart Price Rule settings.

• On the Rule Information tab, under General Information, transfer Coupon to Specific Coupon.
• Create  Coupon Code manually.
• Restrict how many times the coupon can be redeemed in the Uses per Coupon & User per Customer.
• Uses per Coupon sets the number of times the promo code is utilized.
• Uses per Customer sets the number of times the coupon code is used by the same client.
• If there are many cart price rules at once, you should set up the active time and priority to manage them better.
• Make sure Save to activate the coupon code.

Step 2: Publish a Mass of Coupons

This way is implemented in the Cart Price Rule settings.

• On the General Information page, mark the Use Auto Generation checkbox to create a mass of coupon codes after saving the rule.
• Under, select  Manage Coupon Codes tab and do the following step

• Set up  Coupons Qty to the number of coupons, you want to create.
• Insert the number for the Code Length, length keep out the prefix, suffix, or separators.
• Choose the Coupon Format from the following types: Alphanumeric, Alphabetical, and Numeric.
• Put the Code Prefix – the beginning part of the code if needed.
• Put the Code Sufix – the end part of the code if needed.
• Set the Dash Every X Character to make the codes simpler to read. For example, if the number 3 is inserted into that field, the codes will look like: xxx-xxx-xxx.
• Click on Generate button to launch multiple coupon codes and they are displayed on the table below.

5. Conclusion

The goal of this tutorial was to show you how to make theMagento Promo code. Custom-generated codes can be used in a variety of ways to engage potential buyersIf you’ve completed all of the steps above, you may now provide your clients with as many benefits as you desire. Don’t forget to get some love and appreciation from them!Do you have any other questions? Please contact us via the CONTACT FORM. Our customer service representative will contact you as soon as possible. Magesolution is available to assist you with our Magento Web Development service at any moment