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Short-Term Discount Codes

There has been quite a bit of discussion on the A4U forum lately regarding time limited discount codes. These type of codes are usually only live for anything from 2 hours to 2 days. In general these short term codes haven’t been received well by affiliates. Not having the time to implement a discount code to a site in the allotted timeframe is the biggest gripe along with “whats the point of running a promo for a few hours?” type questions.

Well I have to say, that in my opinion, if these short term discount codes are executed well, they can be a great method to drive increased sales in a short space of time. Why? Well its all to do with how the consumer offer is perceived and the physchology behind using a code that is only available for a short period of time. Now I don’t know about you but if I go shopping online and I come across a discount code site that is offering say a 10% discount on books that is available all month, then I may bookmark that page, maybe write down the code or whatever, and file it away for later. But suppose I come across a discount code site and there is a big headline like “Save 10% off EVERYTHING at Jessops for the next 4 hours only!” then I’d be off to that site like a shot and would probably make a purchase.

But why would I do this? Why has that short term discount code provoked a reaction from me? Here’s why:

The promotion only lasts 2 hours so it must be VERY special. This is the rub for me. Give people a time limit and they will perceive (even if its not) the offer to be very special and that big super-duper savings can be made. I mean if an online shop can only afford to run a promotion for a couple of hours then it must be a great deal, right?

This method of promoting a short term discount/special offer is nothing new, look at Woot for example. Its a full site based on the premise of short term discounts. Basically they only offer a deal/product/promotion for a maximum of 24 hours, or until it sells out. This is what’s known in retail as WIGIG When Its Gone Its Gone. Again, this has been going on in retail for decades. BTW Woot has proven so popular that many merchants create exclusive 24 hours discounts and offers for their users.

There is also another effect that short term codes can have on the public and thats the viral effect. If people come across a short term offer on the web that expires within a certain time frame then as I mentioned before its a big deal and they are then more likely to pass the link to your site to their friends or on forums. Much more so than a regular discount code that expires in a few weeks. So really, a short term discount code can also generate a bit of a buzz, and you can really benefit from some of that hype.

Execution - the difference between success and failure

Now short term discount codes are great, but that doesn’t mean that you should give affiliates short notice to launch the promotion Lately there have been a couple of examples whereby a network has emailed affiliates about a short term promotion maybe an hour or less in advance. Case in point - what would happen if a network emailed me at 12pm to say that there is a short term discount code available for merchant XYZ running from 2pm to 4pm today and I was down the pub in meetings all afternoon? Yep I would miss the promotion and the merchant would miss out on sales. So, all I’m saying (to merchants and networks) is please give us at the very least 24 hours notice. Remember short term discount code doesn’t have to equal short term notice to affiliates!

What I’m listening to right now: Angie Stone – “Pop Pop”

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Thursday, September 27th, 2007 at 11:26 am and is filed under Affiliate Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.