Promotional Codes: Conversion Killers?

Promotional Codes also know as Promo Codes, Discount Codes, Coupon Codes, Offer codes etc, are supposed to drive sales, right? However they can have a reverse action and can actually kill your conversions, if not properly used. Here two examples of discount code implementation that can disrupt customers flow and possibly kill conversion.

1. Pomo Code Box:  A customer who does not have a discount code but comes across a text box/button that asks for one during the checkout process is likely to stop and think.  If a customer does not have any kind of urgency to buy the product, he/she will likely try to look for a discount code online.  If he/she does not find one then chances are that you might lose that conversion.
2. Pomo Codes that are not applied automatically: If you advertise a discount code on your site then go ahead and apply it automatically during the checkout process. Do not ask the customer to fill in the discount code manually.  Many customers don’t read the instructions, and if during check out they don’t see what was promised to them then they will leave.  For example see the Nautica.com screenshot below. They advertised 40% off with a discount code.  As you go through the checkout process, they don’t apply the code automatically. Customers have to take an extra step to enter the code manually.  Do you think all the customers will read the instructions (written in red)?

Here are few things that you can do/test to minimize the cart abandonment due to discount codes:

1. Visible discount Code Box v/s a link to open a discount code box–  Customers who have the discount code might actually find it even though it might not be obvious to other customers (you should test this).
2. Automatically apply the code so that customer can see the actual price he/she will be paying
3. If you are going to provide a prominent discount code then provide a bare minimum discount to everybody (and auto fill it). The code could even be for Free Shipping over $75.00 etc.  The point is make sure that everybody feels like they got something (you should test that).

Also check out

1. 5 Things That Could Be Hindering Your Conversions
2. Are Form Validations Invalidating Your Conversions?