What are discount codes?
Discounts codes are a method to incentive customers to make a purchase by reducing the cost of an item or entire order. They're an effective way for you to attract first time shoppers and encourage repeat customers. Customers can further be incentivized by limiting the availability of the code or requiring them to be used within a certain amount of time (hours, days, months) once they have been unlocked.
How can I leverage discounting?
The key to creating effective discounting is offering your shoppers relevant and customized coupons based on their purchase behavior. Offer repeat customers a discount on related or similar items to reward them for their loyalty. Incentivize a customer to complete a purchase after their cart has been abandoned by reaching out with a discount via email or a popup on your store's site. You could also distribute coupon codes to partners so they can distribute them to their audience. Be sure to also ask your customers for their email in return for the coupon! On the analytics side of things, segmenting your data by discount codes is an easy way to see what discount-based campaigns perform the best and drive the most revenue or best cohort LTV over time.