How To Use Coupon Codes To Drive More Sales

Coupon codes are short, customisable sequences of letters and numbers that shoppers enter during checkout to claim a discount or special offer. These offers might include a price reduction, free shipping, a free gift, or access to exclusive sales.

Used strategically, coupon codes are a powerful way to increase sales, improve customer experience, and measure the impact of specific campaigns.

Coupon codes support both short-term conversions and long-term loyalty, making them a smart tool across the customer journey.

They reduce hesitation at checkout, helping turn first-time visitors into buyers. When timed right, they can also prevent cart abandonment, especially if triggered before someone exits your site.

Welcome discounts are also a great option for attracting new customers and work well in popups or landing pages to boost email signups. For existing customers, exclusive codes, like birthday offers or VIP perks, build loyalty and encourage repeat purchases.

Another benefit that may not be first to come to mind is that they are a powerful way to track performance. Assigning unique codes to different campaigns or channels helps you see exactly what’s working and refine future efforts.

There’s no one-size-fits-all format for coupon codes. The type of discount you offer should reflect your goals, product margins, and customer behaviour.

Common types include:

• Percentage discounts – e.g. 10% off sitewide or on selected products
• Fixed amount discounts – e.g. £5 off orders over £30
• Free shipping – often used to encourage higher-value orders or reduce friction at checkout
• Buy One Get One (BOGO) – offers an additional item free or at a discount when one is purchased
• First-time buyer codes – a one-off code to welcome new customers
• Tiered discounts – e.g. spend £50 and get 10% off, spend £100 and get 20% off
• Flash or seasonal codes – limited-time offers tied to product launches, holidays, or special events
• Loyalty or VIP codes – private codes for your best customers to access exclusive benefits

If you’re going to offer discounts, make sure they’re structured to support your business goals, not just drive short-term clicks.

• Start by being clear and consistent. Set rules around how and when codes can be used, including expiry dates, usage limits, and minimum spend requirements. A well-defined offer avoids confusion and builds trust.

• Create a reason to act. Discounts work best when there’s urgency, a countdown timer, limited quantity, or short expiry window can prompt faster decisions.

• Make your codes simple and memorable. Use clear formats like WELCOME10 or SUMMER25. Long or awkward strings slow people down and increase the chance of errors at checkout.

• Tailor offers to the right audience. Segmenting codes for new subscribers, returning customers, or high-value buyers will make each promotion feel more relevant, and perform better.

• Track performance from the start. Unique codes for each channel or campaign let you see what’s working and use those insights to sharpen future promotions.

Distribution is just as important as the discount itself. These are some of the most effective ways to get your codes in front of the right audience:

• Share codes via email during product launches, sales, or re-engagement campaigns.
• Use on-site popups with behavioural triggers (like exit intent or time on page) to convert visitors before they bounce.
• Promote time-limited offers on social media, whether in your main feed or stories.
• Give personalised codes to influencers and affiliates to help track referral traffic.
• Include codes as part of loyalty programs to encourage repeat purchases.
• Add discount codes to printed materials like postcards, flyers, packaging, or receipts.
• Use QR codes on posters or packaging to direct users to a landing page or promo.

Even strong campaigns can fail without the right setup.

Watch out for these pitfalls:

• Codes with no expiry date or usage limit often remove any urgency, customers have no reason to act now, and you risk losing control of the promotion.
• Over-discounting can eat into your margins and gradually devalue your product in the eyes of your customers.
• Using the same generic code across campaigns makes it impossible to track what’s working. Assign separate codes for each channel or partner.
• A confusing or clunky user experience can undo all your hard work. Make sure the code is easy to apply and the offer is clearly explained.

Ending the interaction after redemption is a missed opportunity.

Use follow-up emails or on-site prompts to guide the customer toward their next step.

Coupon codes can be a highly effective part of your broader marketing strategy, when they’re used with intent.

Whether you’re trying to reduce cart abandonment, launch a product, or reward loyal customers, a well-timed discount code can help you hit your goals without undercutting your brand.

Start with a clear objective, choose the right type of offer, and distribute it through channels that reach your target audience.

Track everything, test different approaches, and use the insights to shape smarter campaigns in the future.