When setting up offers, it's important to understand the difference between Promotion Codes and Discount Codes. While both are essential tools in driving engagement and boosting sales, they serve different purposes and offer unique benefits.
What is a Promotion Code?
A Promotion Code is primarily used to gate inventory, meaning that only shoppers with the code can access specific items or offers. It’s often employed to create exclusivity around certain events, offers, or products. Promotion codes are highly effective when you want to:
Target VIP audiences or loyalty members.
Control access to limited or high-demand inventory.
Launch exclusive pre-sales for certain groups.
Benefits of Promotion Codes:
Increases exclusivity: Ensures only the intended audience can access the offer.
Limits inventory to a select group: Useful for managing limited quantities.
Creates urgency: Fosters a sense of scarcity and drives quick purchases.
Example: A special promotion code for VIPs to access premium seats at an exclusive pre-sale event.
What is a Discount Code?
A Discount Code is designed to apply a price reduction to an offer, making it more appealing to the broader audience. Unlike promotion codes, discount codes typically do not restrict access to inventory. They can be applied across various products and offer different types of discounts:
Percentage Off: Provides a percentage discount on the total purchase (e.g., 20% off).
Dollar Off: Offers a fixed dollar amount discount (e.g., $10 off).
Buy One Get One (BOGO): Allows the customer to buy one item and get another at a discount or for free.
Benefits of Discount Codes:
Increases sales volume: Discount codes encourage more purchases by making offers more affordable.
Boosts customer engagement: Special deals can attract new customers or encourage repeat purchases.
Offers flexibility: Different types of discounts allow for a wide range of promotional strategies.
Example: Offering 20% off for customers who buy within the first 24 hours of an offer going live.
Key Differences:
Feature | Promotion Code | Discount Code |
Purpose | Gates inventory, restricts access | Reduces price, incentivizes sales |
Usage | Exclusive access to limited inventory | Applied broadly across offers |
Types | Single-use for specific groups | Percentage off, dollar off, BOGO |
Audience | VIPs, loyalty members, specific groups | General public or targeted groups |
Impact on Inventory | Limits inventory to code holders | No restrictions on inventory |
Both promotion codes and discount codes are powerful tools in your marketing strategy, but they cater to different needs. Understanding when to use each can help maximize revenue, manage inventory, and create tailored experiences for your customers.
Using Promo Codes with Discount Codes
Q: Can I use a discount code and a promo code at the same time?
A: Yes, you can! Promo codes and discount codes can be used together, depending on how your offer is configured.
Here’s how it works:
Promo Codes gate access to exclusive inventory, allowing only select customers to view and purchase specific offers.
Discount Codes reduce the price of the items or services once a shopper has access to them.
If a shopper has a Promo Code to unlock an exclusive offer, they can also apply a Discount Code at checkout to receive a percentage off, dollar off, or other applicable discount. This combination allows you to create a powerful sales strategy that combines exclusivity with incentives.
Example:
A VIP customer uses a Promo Code to access a special offer with premium seating.
At checkout, they apply a Discount Code to receive 10% off the total price of the tickets.
Q: How do I set this up?
A: When creating your offer, ensure that you select both a Promo Code (for inventory access) and a Discount Code (for price reductions) under the Buyer Options tab, and specify if any restrictions apply.
By allowing both promo and discount codes, you can provide a seamless shopping experience that rewards your customers with access to exclusive deals and additional savings.