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Coupons vs vouchers vs promo codes

Promo code is the term you’ll hear and use most often in your eCommerce-focused promotional efforts. Put simply, a promo code is an alphanumeric sequence, often personalised, that consumers can use to redeem money off purchases online or in-store.

Also commonly referred to as discount codes, voucher codes and coupon codes, businesses can either send codes like these directly to consumers or implement them into QR barcodes and more. Promo codes traditionally take the form of either percentages or dollar amounts of money off and can apply to both individual purchases and complete orders.

In many ways, promo codes are the umbrella of the promotional world. They certainly offer an overarching promotional strategy, which is vital in an age where 75% of consumers expect some form of money off. In fact, 62% of consumers now state they won’t complete a purchase without it. Promo codes can help you to meet that need and boost your eCommerce business moving forward.

Coupons vs. Vouchers

Within and slightly separate to the promo code umbrella are coupons and vouchers. While each of these utilises promotional codes in different ways, understanding and testing each format is vital for finding techniques that work for your unique business model.

In and of itself, a promo code is incomprehensible and unusable. It’s only when paired with the visual representation of coupons and vouchers that these base codes develop meaning and value to customers. The question is, are you better off displaying promo codes through coupons or vouchers?

In reality, there’s no right answer here. The terms vouchers and coupons are mainly synonymous, and each can work in a business setting. That said, there are subtle differences between the two. While these aren’t always universal, understanding the basics can help you to choose the right method for your business needs.

Discount vouchers typically pass from a retailer straight to consumers. Taking the form of emails, gift cards and even loyalty cards, vouchers can be used as rewards, compensation, and more. While mainly providing one-time discounts, vouchers tend to work on a depletion basis, encouraging repeat purchases if money remains.

Coupons are typically distributed by either a marketing team or an independent reservation. Unlike the depletable nature of some vouchers, coupons tend to cover one-time purchases on food and drinks, retail items, and more. Unlike vouchers, many companies use online or printable coupons to attract new audiences. Much like offering a free sample, coupons work well for encouraging first-time purchases that lead to repeat custom.

Applying these differences to your bottom line

Once you understand the fundamental differences between vouchers and coupons and how promo codes fit within that, you can work to apply these methods to your business bottom line. First, you’re going to want to consider the different deliveries of each, and how you can implement them into your business efforts.

Vouchers are much easier to deal with in this sense because you already have a customer base to utilise through email and more. Still, you can hardly send a blank promo code. Instead, consider the different creative ways you can make use of artwork and personalisation within promotional emails or cards to dress vouchers in a way that both appeals and increases conversions.

Coupons generally involve a much broader reach. While presentation still matters, you also need to focus on marketing techniques that include social media efforts and connections with third-party sites. Engaging with influencers is also an invaluable tool here. By providing coupons for influencers to share with their audiences, you can enjoy the power of personalisation with audiences that are more likely to buy from you.