Promo code popularity soars

There has been a surge in promo codes and discounts offered by online retailers in recent times, a new survey has found.

The study by SimplyCodes found a substantial increase in the issuance of promo codes by online retailers and brands, indicating a growing reliance on discounts as a strategy to attract customers. The study, which analyzed data from nearly 400,000 retailers January and June 2024, found a 31 per cent increase in the number of unique promo codes issued compared to the same period in 2023.

The study also showed that promo codes are not only more abundant but offer larger discounts. This year, the average discount provided by promo codes is 17.6 per cent, up from 17.17 per cent last year, a 2.6 per cent increase. Additionally, the average dollar amount off per promo code has risen by 22 per cent, increasing from $27.26 to $33.25.

A notable trend identified in the study is the rise of single-use promo codes, which are unique codes provided directly to customers, often via email, and can only be redeemed once. The number of retailers offering these single-use codes has jumped by 47 per cent compared to last year, indicating that merchants are increasingly tailoring their promotional strategies to individual customers.

The suggestion from the study is that there’s a growing reliance on promotional codes by both consumers and retailers, driven by competitive pressures and economic factors such as inflation and the rising cost of living. Nearly 70 per cent of respondents reported that having a promotional code makes them more likely to complete a purchase, while 62 per cent actively seek out and use promo codes when shopping online.

This suggests that promo codes have become an essential tool for retailers looking to boost sales and customer engagement in a challenging economic environment.