How to Create and Manage Discount Codes on Shopify

Online shopping has dramatically evolved in the last 5 years. With innovative apps and increasing competition, store owners have to develop strategies to keep their sales going. One of the tried and tested methods is discounts. 

It is reported that 41% of online shoppers buy because of discounts and coupons. It has become a subconscious consumer behavior to prefer discounted products. 

If you want your Shopify store buzzing with sales notifications, Shopify discount codes have the power to turn this goal into reality. Keep reading to manage discount codes on Shopify stores and optimize them. 

How do you create a discount code on the Shopify Store?

Creating a discount code on Shopify stores is simple. Here is a step-by-step guide:

1. Go to Admin Dashboard: Login to your Shopify admin panel. 
2. Find discount section: From the Shopify Dashboard, click on “Discounts” located on the left-hand sidebar. 
3. Create a New Discount Code: Click on “Create discount” at the top right of the screen. 
4. Setting Discount Details: There are different types of discounts you can choose from. Select which one you want to go with. The types are Value, Minimum requirement, usage limits, and validity period. 
5. Preview and Save: Once all is done, preview the settings to make sure everything is in order. Click “Save” to activate the discount. 

Type of Discount Codes on Shopify Store

Shopify offers several types of discount codes to suit different promotional strategies. Here are the types of discounts offered explained:

• Percentage Discount: Offers a percentage off the total purchase. For example, a 10% off discount.
• Fixed Amount Discount: Provides a set dollar amount of the total purchase. For example, a $15 discount.
• Free Shipping Discount: Removes the shipping cost for the customer. This can be region-specific (e.g., free shipping for domestic orders only).
• Buy X Get Y Discount: Offers a free or discounted product when a certain quantity is purchased. For example, buy 2, get 1 free.

How to Manage Discount Codes on Shopify?

Managing discount codes on Shopify helps manage your account get insights on monitoring performance and ensure it is being used effectively. 

1. Pausing or Deleting Discount Codes

Sometimes, you may want to temporarily pause a discount rather than delete it, especially if you plan to reuse it later:

• Pausing a Discount Code: This option allows you to keep the code but prevent customers from using it temporarily. For example, if a promotion is over, but you plan to bring it back during a different sale event, pausing the code is a great choice.
• Deleting a Discount Code: If the promotion is permanently over or irrelevant, you can delete the code entirely. This action is irreversible.

2. Organizing Discount Codes by Campaign

If you run multiple campaigns at different times of the year, it’s easy for discount codes to pile up and become hard to manage. Here are a few tips for staying organized:

• Label and categorize your discounts based on their purpose (e.g., “Holiday Sale,” “Black Friday,” “Loyalty Rewards”). This makes it easier to sort and find specific discount codes later.
• Group similar discounts together. If you’re running a seasonal sale, create a separate section or tag for all the discount codes related to that campaign.

3. Tracking Discount Performance

Shopify’s built-in analytics tools allow you to track how your discount codes are performing. This helps you understand which promotions are working and which need adjustments:

• Check the “Discount Usage” reports to see how often each discount code is used and the total sales generated. This insight helps you gauge the success of a specific campaign.

• Monitor customer behavior: If one discount code is more popular than others, it might indicate a preference for certain types of promotions (like percentage discounts over fixed discounts).

4. Using Discount Codes to Drive Customer Behavior

Beyond just offering discounts, use them strategically to encourage specific actions from your customers. For example:

• Increase average order value: Set a minimum purchase requirement (e.g., “Get $20 off when you spend $100”) to encourage customers to spend more.
• Encourage loyalty: Offer exclusive discount codes to repeat customers or those who leave a review. This not only drives sales but also builds long-term relationships.
• Create urgency: Limited-time discounts like “24-Hour Flash Sale” create a sense of urgency, pushing customers to make faster buying decisions.

5. Advanced Discount Options

If you’re looking for advanced discount management options, Shopify’s app store offers a range of tools to help. Here are some of the tools: 

• Generate discounts automatically based on customer behavior (e.g., offering a discount if someone abandons their cart).
• Enable stacked discounts, where customers can use multiple discount codes in a single transaction (if this fits your business model).
• Offer personalized discounts, where each customer gets a unique code based on their purchase history or preferences.

FAQs

How can I track discount code performance?

Shopify natively gives analytics tools that allow you to track the performance of your discount codes. You can see the “Discount Usage” report, where the number of times a code is used and total sales made are recorded. You will find which promotions are doing the trick through analysis

Can discount codes maximize average order value?

Average Order Value can easily be increased when you use discount codes strategically. You can apply a percentage off that needs a minimum purchase, such as “Get $20 off when you spend $100,” that encourages customers to add more items to their carts. Are there any advanced tools for managing discounts on Shopify?

How can I use discount codes to build customer loyalty?

Discount codes are an awesome way to encourage customer loyalty. You can set up specific discount codes for return customers, give special deals for subscribers, or even appreciate customers who post positive reviews. 

Conclusion

Discounts codes are very powerful sell-pushers, boosters of loyalty, and evoke specific buying behaviors. Shopify’s flexible options help the store owner easily manage the creation of promotions based on business goals. From percentage discounts to free shipping, the platform allows you to craft the perfect strategic campaigns for targeting more customers.

Shopify analytics will be able to track how your discounts are performing, and thus, you may refine your strategies. Additionally, utilizing its access to the most advanced tools and integrations that the Shopify app store can offer, you can make discount automation and personalization happen, so your optimization of marketing efforts will be even better.

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