There's a variety of sites for the money conscious shopper to choose from, including Voucher Codes and Voucher Cloud, to name just two of the more popular players in the game.
But why do well established and emerging brands alike frequently make use of voucher codes? Well, there are a range of reasons, ranging from a short term boost in sales, to longer gains in overall visibility and exposure.
The lucrative nature of voucher codes may also rely heavily on the niche the brand is operating in. B2C brands are much more known for their use of voucher codes, as opposed to niche B2B operators. This isn't to say that B2B don't use voucher codes as a marketing tactic, because they do. However, for the most part, the most common markets that voucher codes can be found for include things like restaurants, clothing shops, electronic goods and gambling websites.
Let's take a look at the benefits voucher codes give brands, as well as their consumers.
Vouchers tap into the ‘for free' culture
Saving money is a big thing right now. The global economy is emerging from the back of a nasty recession, which we all remember very well. Britain is recovering now, albeit at the slowest rate on record. If the recession has taught us anything, it's to be a bit more conservative with our own personal finances and to save money where we can.
Voucher codes allow people to do this without modifying our behaviour too much. You can still buy all the luxuries that you like, but by performing a simple search online, you can often find a voucher code to knock a percentage off of the final bill. This is a great result that everyone can get on board with, and in the scenario of two brands competing against each other for a sale, the brand who makes use of a voucher code will more than likely get the sale against the one that doesn't.
After all, who wants to pay more for something they know they can get cheaper elsewhere?
Just look at the ways big retailers use voucher codes to entice people to shop with them.
Supermarkets frequently give first time buyers a percentage off their first order, in a bid to convert them into regular customers.
In a similar vein, Titanbet Poker offers bonus codes to new players, which gives them a chance to stake and play. E-commerce websites use voucher codes in targeted emails for people who have abandoned their baskets or haven't shopped with them for a long time. Similarly, they may also reward loyal customers with community based deals that only their most active members can redeem.
Short term vs long term benefits
The short term benefits of voucher codes are simple: They provide a short, sharp boost in sales.
This is perfect if brands have overstocked a particular item and need to get rid of it quickly, or if there is a time sensitive event or holiday coming up that brands want to piggyback off of (for example, it's not uncommon to see sites offer discount codes over Easter, Christmas or New Year).
It's also a smart tactic as, thanks to the aforementioned voucher sharing websites, it gives brands great exposure. Certain web users will check out these sites regularly in a bid to ensure that they never miss a bargain. They may even stumble upon a code from a brand or store they were not previously aware of and decide to give them a go. If their experience with the vendor is good, they may turn into a returning, full price paying customer.
In the long term, voucher codes help to build a sense of community. If, for example, a brand is slightly more expensive to buy from in the regular day to day, but offers massive discounts regularly to email subscribers, this will encourage shoppers to remain loyal if the service provided is good.
Shoppers will also stay loyal if desirable extras, such as free shipping, or discounts off of returning orders are thrown in to sweeten the deal.
The possibilities are endless, and the only limit is the creativity of the brand's marketing department and their ability to discover which deals their customers are eager to get their hands on.
A brand that looks after and retains its customer base will generally do well. It encourages steady conversions and maintains, or increases, customer satisfaction - two critically important aspects in the world of commerce and retail.
It's also important to keep profit margins in mind. It's not helpful to view discount codes as money lost off of the full price of the product. There's nothing to say that these customers would have placed their order without the use of a discount code. Any good voucher plan will examine profit margins and will allocate a discount that still turns a very healthy profit to the vendor.
It's true that these conversions may have a lower profit margin, but they are still conversions that turn a profit, which is exactly what all businesses need to survive.
If your company hasn't been using voucher codes, give it a try
Voucher codes are a relatively low risk tactic and it's extremely easy to track their effectiveness.
In addition to this, consumers absolutely cannot get enough of them, so it's a very smart marketing choice.
If it's a matter of converting at a reduction of 10, 15 or 20 percent of the original price, or not at all, then the reduced price conversion is a no brainer - especially if the shopper then returns to your brand for a second time, and at full price.
