Retail discount codes are getting shorter

Online shopping is undergoing a huge transformation right now. Long discount codes, which were a jumble of letters and numbers, have now evolved into shorter, brand aligned codes that are easier to remember. A lot of this is due to the rise in mobile users, who might find it harder to copy and paste.

Discounting is Becoming More Strategic

Brands are splitting offers for new customers from the discounts they may give to existing, loyal customers. Asos, for example, has a NEWHERE discount code for new customers. Nike also offers discount codes like RUN20, which applies to running shoes, specifically.

During Halloween, sites may offer discount codes like SPOOKY10, which entitle customers to a 10% discount. In other verticals, like iGaming, it’s not uncommon to see short-string codes like PGCTV1 for a casino promotion with free spins. They give a specific number of spins when the user deposits into their account. It’s a convenient way to target mobile and desktop users, with codes being memorable enough to type in without having to reference the promotion again and again.

Promotions and discount codes like this to target new customers make it easier to segment audiences while providing a more customised experience. Not only does this incentivise engagement, but it also makes time limited offers more impactful.

Shorter Discount Codes Reduce Friction

Short discount codes shape a smoother user experience. In fast-paced e-commerce environments, every step increases friction. A long code is likely to lead to input errors, which can lead to cart abandonment. Retailers like Asos are combating this by introducing codes like HEYAPP, if using an app, or NEWHERE, if using a desktop.

Catering the code to a specific device streamlines conversions. By incorporating their names into discount codes, brands reinforce their identity. Brands like Zara may use codes like ZARA10, making it easier to engage users on social media. Brands like Sephora do this on a regular basis, as it supports inclusivity as well as a clearer and more transparent shopping experience.

Another notable shift is brands putting a bigger focus on timed discounts. By making discounts shorter and limited to two or three days, brands ensure that customers are acting quickly, which increases sales.

Live countdowns that correlate to the discount code are also a good way for brands to make sure that they are not only targeting the right audience, but that they are also capitalising on the fear of missing out. Together with push notifications, it significantly boosts conversions. Research shows up to a 40% increase in conversion rates and a 22% rise in click-through rates. Using FOMO techniques typically increases conversion rates, rocketing them to between 15%-40%.

According to research, mobile coupons are redeemed ten times more than paper-based ones. Brands need to follow consumer trends by offering discounts in formats that resonate with the needs of modern audiences. Interestingly, 90% of coupon users also activate them on a smartphone over a desktop as well, indicating that coupons don't just need to be shorter; they need to be readily accessible and sized accordingly to mobile screens.

Featured