A coupon code, also referred to as a promo code, is a computer-generated code consisting of letters and/or numbers that is used on an e-commerce website. When a user enters a coupon code into the corresponding field, they receive a discount, whether that is a fixed discount, a percentage off the entire purchase price, free shipping, or any other discount as advertised by the merchant.
Coupon codes can be obtained by consumers from advertisements, reaching a specific dollar amount when a purchase is made, or as an incentive for being referred by an existing customer.
Online merchants offer coupon codes as an incentive to shoppers to purchase from their website. It benefits both sides—customers save money on the products they want, and merchants generate revenue. Coupon codes work well with both new and returning customers and are an effective way to track marketing efforts. Merchants can track their efforts by attaching specific coupon codes to specific marketing campaigns or advertisements. This will reveal which platforms generate the most traffic or lead to the most conversions.