For a long time, companies have been using promo codes to drive conversions. Promo codes have become an effective medium for companies to market their products and services. Especially from the time people became more active on the internet and used it for buying or booking products or services. The effectiveness of Promo Code in driving conversions is relatively good and this is one of the reasons even top brands around the globe release their promo codes to lure in customers.

Every brand these days has its promo codes because they have significantly increased the revenue of the companies by a good little percentage. Promo codes have somewhat become an integral part of the marketing strategy especially when a new product or service is to be launched soon. Out of the so many marketing tactics, the promo codes are also contributing to the success of global as well as local brands. So let's look at the ways promo codes are used and how they help companies and brands drive conversions.

Promo code is a great way to show gratitude to the customers. The behavioral marketing strategy that works behind the success of a product or service is directly dependent on showing gratitude to the existing customers for their selfless loyalty. An email sent to the customer offering a certain percent discount with a loyalty bonus is what drives existing customers to stay with the brands. The success story of so many brands and products reflects how they have reached out to the customers and made them feel special by offering certain discounts through promo codes and loyalty bonuses.

Promo code is one very effective weapon in the arsenal of the companies to lure in customers. Promo codes are also used to celebrate customer's special days. Customers like to be greeted and this is one of the reasons that birthday and anniversary emails are increasingly popular. It is often seen that promo codes sent in an email on the special day of the customer have 2.5 times higher redemption rates than average all email campaigns. Customers tend o spend their spare cash on their special days and this is where a special promo code does the trick.

Another reason why promo code has become a revenue-generating tool for companies and big brands is that customers these days love shopping on the go and there are so many eCommerce platforms with tons of products and services. Every company has created its very own promo codes because the traffic that eCommerce platforms receive is huge and the redemption rate is way higher than email campaigns. It is often seen that customers look for some sort of promo code to redeem when they are about to checkout. 5 out of 10 customers look for some sort of promo code to save some money on their purchase. This is where a subtle promo box with some discount code helps the brand build a customer base.

Promo codes play with the behavior of the customer and brands that understand these behavioral patterns tend to generate better revenue and a large customer base.

Author's Bio: 

I am currently writing on tech, auto and lifestyle.