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Strategy5 min23 de enero de 2025

Promotional codes that work

Types of codes, usage strategies, and how to measure their effectiveness without cannibalizing your sales.

Promotional codes are a powerful tool to drive sales, reward loyalty, and measure the effectiveness of different channels. But misused, they can cannibalize sales that would have happened anyway and erode the perceived value of your event. The key is to use them strategically.

Types of codes and when to use each

Not all promotional codes are the same. Each type has a specific purpose.

  • Percentage discount: 10%, 15%, 20%... easy to understand
  • Fixed discount: €5, €10 off, better for cheap tickets
  • 2x1 or group: incentivizes multiple purchases
  • Exclusive access: unlocks tickets not publicly available
  • Added gift: doesn't discount price but adds value (drink, merch)

Distribution strategies

How and to whom you distribute codes determines their effectiveness.

  • Influencers: personalized code to measure real conversions
  • Sponsors: limited quota for their employees or customers
  • Media: exclusive code for their audience
  • Retargeting: code for abandoned carts or cold leads
  • Loyalty: reward for recurring buyers

Limitations and controls

Without limits, codes can become a problem. Configure clear restrictions.

  • Maximum use: how many times the code can be used in total
  • Use per person: prevent one person from using it multiple times
  • Expiration date: generates urgency and controls the period
  • Applicable products: only certain tickets or the whole catalog
  • Minimum purchase: applies only if buying X or more

Avoiding cannibalization

The risk of discounts is that someone who would have paid full price uses a code. Minimize it like this:

  • Don't make public discounts: distribute them to specific segments
  • Unique or limited-use codes: prevent them from going viral
  • Don't repeat the pattern: if there's always a discount in week X, people wait
  • Analyze incrementality: did the code generate new sales or just move sales?

Evaluation metrics

Measure the real impact of each code to optimize future campaigns.

  • Sales per code: how many tickets each code sold
  • Net revenue: after the discount, was it profitable?
  • Acquisition cost: lost revenue vs new customer value
  • Attribution: where each code came from (which channel, influencer, etc.)

Conclusion

Promotional codes are a precision tool, not a bombardment. Use them with clear purpose, controlled distribution, and rigorous measurement. The goal is not to give discounts, but to generate sales that otherwise wouldn't happen and build relationships with valuable audiences.

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