Using Online Promo Codes to grow your Business

By:

March 19, 2016

2 min read
Reading Time: 2 minutes

Promo codes are a powerful tool in every tourism operator’s toolkit. This article talks about some of the ways you can use these tools to help in the marketing and promotion of your business.

As for any type of promotion, the key objective of promo codes is to deliver a positive return for your business.

Creating promo codes:

Firstly, you’ll need to define the objective of your promotion. Some possible objectives could be:

  • To encourage online booking. Bridge the world from offline to online and relieve pressure on your reservations staff.
  • To create a sense of urgency. Offer a limited-time deal, or encourage an early purchase.
  • To promote less popular products or dates. Counteract some of the seasonality of your business by offering shoulder-season deals.
  • To upsell itemsOffer discounts for purchasing multiple items at the same time.
  • To promote a new offering. Encourage customers to try a new service offering.
  • To track revenue sourcesUse different codes to determine which sales channels perform best.

Secondly, you’ll need to decide how to deliver the offer. Here are some possible options:

  1. Offer it directly on your website
  2. Print flyers or tickets and place them in strategic locations like tourism information centres, hotels and with your resell partners.
  3. Through deal sites such as Groupon
  4. Send codes via email marketing.

Avoiding promo code pitfalls:

Before creating your campaign, it is important to crunch the numbers to understand the financial implication of offering your tour or activity at a discounted rate. To get the most ROI from your campaign, you will need to build in some controls:

  • Limit the number of codes accepted per date/activity/for the entire promotion
  • Set a date range for the promotion
  • Set a discount level that you can afford
  • Prevent multiple uses by the same user

Analyzing your ROI:

At the end of the promotion, check its performance. Calculate the number of promo codes that were used and compare it against key metrics. Did it perform as expected? Do your results indicate that the temporary decrease in profit could lead to increased sales in the long term? Have you generated loyal customers who are likely to book with you again in the future?

 

Users of Zaui Software get access to all of our online promo code functionality and much more. Click here to learn more about Zaui, or to schedule a demo.

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