How Coupons and Promo Codes Improve Personalization in 2021

Today personalization of your marketing efforts is the key to the success of your campaigns. You may have got the power to reach several potential customers at the click of your mouse. But the real difference is possible only through custom-made discount schemes. You can call it the mass customization of discounts.

People feel happier about getting special discounts. The condition is that the deal should be exclusive only to a select few. However, you never know when these special offers may get spammy. There is a fine line between them.

If a discount scheme is applied judiciously, it can motivate the shopper to go the extra mile to indulge in risk buying. But if that does not match with their interests, it may backfire.

You need to maintain a delicate balance. Encourage, but don’t be too pushy. Make sure that the mail notifications and posts packed with exclusive deals do not spam the buyers.

A study on consumer behavior found out that 69% of buyers loyal to a specific brand were ready to try a new brand. They did so during in-store shopping on getting a discount. Approximately 80% of the respondents agreed that they wanted to switch loyalty to an unknown brand based on discount coupons.

More research compiled data of about 1100 shoppers across the country to monitor and measure their preference based on personalized offers or discounts. Following were the key findings regarding their behavior and likings:

Research Reports

Salient findings of the research

  • Very high discounts are almost 100% effective in bringing customers to the store. It includes current and old buyers.
  • If a buyer gets a high-value discount offer for the first time from a brand new to him, they are ready to buy for the first time in most cases.
  • Shoppers have a marked preference for one time vouchers with hefty discounts than multiple coupons of a lower value discount.
  • It reveals a lot about consumer behavior when getting high-value discounts. The study reiterates the fact that discount schemes and codes positively affect the decision making of most consumers.

The Science Behind It

It is not just a matter of their likings. There are many other nuances of customer behavior related to savings from discount deals. Many studies conducted to examine such behavior reveal surprising facts.

Some researches show a significant level of euphoria related to redeeming discount coupons. The joy of saving is more profound than a situation where the customer paid less. They did not get any discount, although the product’s overall price was on the lower side. It means the customer associated happiness with it because he has been able to get some extra value, which others have not.

A study revealed that some buyers have a habit of using discount coupons. They redeem coupons to buy the products at a discounted price, even if it means an overall increase in the cart value. It seems that redeeming a voucher and saving some money is more important than overall savings. They appear to save more on discounts at the cost of a higher overall spend

The buyers lose track of the real cost of the products. They run after the voucher codes to get better and better deals, often due to their habits. The main motive for such shoppers is to bring happiness out of these discounts. In a nutshell, the buyers with the practice of using vouchers end up spending more than others.

How Can We Use Promotional Codes to Increase Sales

The personalization of coupon codes is the key to successful marketing. Hence, many retailers want to make use of this technique. The strategy of pre-planned discount schemes brings more business than regular low prices.

Moreover, today’s high tech IT industry can personalize coupon codes as per consumers’ likes and interests. They can target them with custom-made discount codes. There are many ways to use Personalised discounts to get more business. Here are the important ones.

1) Target segments

Based on location, demography, and buying history, you can segment the market into identifiable groups. Based on segment characteristics, you can target these segments with personalized coupons.

2) Retarget those segments

Build upon the previous step of targeting to know more about the customers who prefer your products. You may track such buyers with browser cookies. Strike when the iron is hot. It means that you use technology to display the code when the customer is most likely to use it. The cookies help you to identify and track. You can show such offers on some social media sites.

3) Study of consumer behavior

Try to find out which type of sales promotional codes work and which do not seem to work. Introduce a variety of offers over some time and measure their effectiveness. Once you understand what works, base your future marketing strategy on them.

4) Use of technology

Modern technology is no more a luxury. It has become a necessity to understand buyer preferences and surfing habits to gain customer insights. Unique customer identification codes help you to capture and analyze data. It is something like opening a page for each customer in your diary and noting every relevant detail in it.

5) Use email to your advantage

Once you develop a database of customers with insights about their behavioral patterns, it is high time to use email marketing. Automated emails with the latest features can target customers with pinpoint accuracy. You can ensure repeat purchases, attract new customers, and build long term relations with existing buyers.


It ultimately means understanding customer behaviors and what is the reason behind their actions. Most often, you will find that saving money is a priority for them.

Understand your buyer and target them based on the customer insights you have. We know that promo codes are useful in getting buyers’ attention, making them shift loyalties, try new products, and so on.

The aim is not just to bring a customer once but to make him a repeat buyer. Using Personalized coupons in your marketing mix can ensure their comeback, provided you use them after understanding the customers well.