The Voucher Effect
WHAT EXACTLY IS A VOUCHER CODE?
Technology has certainly changed the way that we view and approach advertising, one of the most significant changes has happened with the introduction of voucher codes. On the surface it may seem like a regular discount, however, it goes much deeper than that.
Some of you may be asking yourselves; just what exactly is a voucher code? Well to be specific, voucher codes consist of a line of text that when entered in the correct box at checkout, will grant the user a special discount on a product or service. Often, these codes are predetermined by you, the business owner, or they may also be automatically generated. It can be anything from XOJWNDNW90W to FREESHIPVALENTINES, depending on the type of voucher you want to have.
THE IMPACT OF VOUCHER CODES
The introduction of voucher codes has had a direct impact on the way we advertise our products online. One common misconception is that implementing voucher codes will “hurt” the image of the business using it, stemming from the idea that vouchers depreciate their products or services for a couple of sales, however, the numbers show a completely different outcome.
According to a study by Juniper Research, it is projected that voucher code redemptions will surpass a total of €77 billion by the year 2022, an increase of 94% from 2019. With over 1 billion users worldwide, the number of potential customers is too large to ignore. We see that vouchers have a hand in incentivising new and returning customers by giving them the savings they need to take the item from the basket to check out. Often, the difference between your site and your competitors is the voucher itself, research shows that customers are more likely to purchase from the site that has a steady flow of vouchers than those that do not.
In the short term a voucher code may mean a sale but in the long term it could mean the loyalty of a customer, especially with monthly or yearly vouchers that reward them for shopping with you or using your service regularly.
HOW ARE VOUCHER CODES DISTRIBUTED?
After all the information above, you are probably asking yourself, “I like the idea of voucher codes, but how will I get people to use them? Should I shout it on the street and hope someone hears it?” Well, that is certainly a unique approach; however, you may not get the desired effect.
The number one option for voucher distribution has become the use of “voucher sites”. Typically, a site will launch your new offer for a good, service, or event. The voucher will then be added to their site and will be sent in an email directly to subscribers in a daily newsletter that highlights some of the local offers or something they may have interest in, sometimes they will also share it through social media. If a customer likes what they see in the voucher, they can either copy the code and input it during check out, or they may click a link that takes them to an ad directly on the voucher site. Overall, it is a simple process for the customer.
Voucher codes are revolutionising the way we approach online sales, with many customers relying on them for savings. In today’s market, it has become essential to incorporate vouchers into your ad network or you risk falling behind. With large numbers of users, it is an advertising tool that deserves a look, possibly adding that extra dimension your business needs.