Shopify is one of the top online store platforms available today, and one of the many features it offers is the ability to create discount codes. As a store owner, discount codes can be a powerful tool to attract new customers and boost sales. In this article, we'll take a closer look at how to create discount codes on Shopify, and explore the many ways you can use them to increase your revenue.
Understanding Discount Codes on Shopify
Before we dive into the nitty-gritty of creating discount codes, it's important to first understand what they are and the benefits they can bring to your store.
Discount codes are a great way to incentivize customers to make a purchase. They can be used to offer a percentage or dollar amount off the total order, or specific products and collections. As a store owner, you have full control over the type of discount you offer and the conditions in which it can be used.
But why should you use discount codes? Well, for starters they can be a powerful tool for attracting new customers, boosting sales, and increasing customer loyalty. By offering a discount, you can create a sense of urgency and encourage shoppers to make a purchase. Additionally, by setting restrictions or conditions on your discount codes, you can steer customers towards specific products or collections, helping to drive sales for items that may be struggling to gain traction.
Benefits of Using Discount Codes
Discount codes can be a powerful tool for your business. Here are some of the key benefits:
- Attract new customers: Discount codes can be used to attract new customers to your store. By offering a discount, you can encourage shoppers to try your products and services.
- Boost sales: Discount codes can help boost sales by creating a sense of urgency and encouraging shoppers to make a purchase.
- Increase customer loyalty: By offering discounts to your customers, you can increase customer loyalty and encourage repeat business.
- Drive sales for specific products or collections: By setting restrictions or conditions on your discount codes, you can steer customers towards specific products or collections, helping to drive sales for items that may be struggling to gain traction.
Types of Discount Codes
Shopify offers a few different types of discount codes, each with its own unique set of use cases:
- Percentage discount: This type of discount takes a percentage off of the total order, such as 10% off. This is a great option if you want to offer a discount on the entire order.
- Dollar amount discount: This type of discount takes a specific dollar amount off of the total order, such as $20 off. This is a great option if you want to offer a specific dollar amount off of the total order.
- Free shipping: This type of discount offers free shipping on the entire order. This is a great option if you want to encourage customers to make a purchase by removing the cost of shipping.
- Buy X, Get Y: This type of discount offers a free or discounted item when a specific item or quantity is purchased. This is a great option if you want to encourage customers to purchase a specific item or quantity.
Now that you understand the benefits of using discount codes and the different types of discount codes available on Shopify, you can start creating your own discount codes to help grow your business.
Setting Up Your Shopify Store for Discount Codes
Discount codes are a great way to encourage customers to make a purchase on your Shopify store. By offering a discount, you can entice shoppers to complete their transaction, and even encourage them to come back for more in the future. However, before you can start creating discount codes, you'll need to enable the feature in your Shopify store. Here's how to do it:
Enabling Discount Codes in Your Store
To enable discount codes in your store, first navigate to your Shopify dashboard and click on "Settings" in the bottom left-hand corner. Next, select "Checkout" from the list of options, and scroll down to the "Order processing" section. Here, you'll find an option to "Enable discount codes." Simply toggle this on, and you're good to go!
Once you've enabled discount codes, you'll be able to create unique codes that customers can use to receive a discount on their purchase. You can set the discount amount, the date range for the code to be valid, and even limit the number of times the code can be used.
Customizing Your Store's Checkout Process
Now that discount codes are enabled in your store, you may want to customize the checkout process to make it clear to customers where they can enter their code. To do this, head to the "Checkout language" section in your Shopify dashboard, and look for the option to customize the "Discount code" field. You can change the wording or add additional instructions here to ensure customers know exactly how to use their discount code during checkout.
Customizing your checkout process can also help to reduce cart abandonment and increase conversions. By making the checkout process as smooth and easy as possible, you can encourage customers to complete their transaction and become loyal customers.
Another way to make the most of discount codes is to promote them on your website and social media channels. You can create eye-catching graphics or videos to showcase your discount code and encourage customers to use it. You can also use email marketing to send out discount codes to your subscribers, or offer a discount code as an incentive for customers to sign up for your newsletter.
Overall, discount codes are a powerful tool for increasing sales and building customer loyalty. By setting up discount codes in your Shopify store and customizing your checkout process, you can create a seamless shopping experience for your customers and encourage them to come back for more.
Creating Discount Codes in Shopify
Now that your store is set up for discount codes, it's time to start creating them! Here's how:
Accessing the Discount Code Creation Page
To create a new discount code, navigate to the "Discounts" section of your Shopify dashboard, and click on the "Create discount" button in the top right-hand corner. This will take you to the discount code creation page.
Choosing the Discount Code Type
Once on the discount code creation page, you'll be prompted to select the type of discount code you want to create. Choose from the options mentioned earlier, depending on the type of promotion you want to offer.
Setting Discount Code Parameters
Next, you'll need to set the parameters for your discount code, such as the amount of the discount, or the products/collections it can be applied to. Be sure to set any restrictions or conditions you want in place, such as a minimum purchase amount or an expiration date.
Adding Usage Restrictions
If you want to limit the use of your discount code to specific customers or groups, you can do so by setting usage restrictions. You can restrict usage to only first-time customers, for example, or limit it to only customers who have spent a certain amount in your store.
Setting an Expiration Date
You may want to limit the amount of time a discount code is available to use to create a sense of urgency. If so, be sure to set an expiration date for your discount code.
Managing and Tracking Discount Codes
Now that your discount code is created and active, it's important to keep track of its usage and performance. Here are a few ways to do that:
Editing Existing Discount Codes
If you need to make changes to an existing discount code, you can do so by navigating to the "Discounts" section of your Shopify dashboard and clicking on the discount code. Here, you can make changes to any of the parameters you set when you first created the code.
Deactivating and Deleting Discount Codes
If you want to stop a discount code from being used, you can deactivate it by clicking the "Deactivate" button in the discount code's details page. If you want to remove a discount code entirely, you can do so by deleting it. Note that once deleted, a discount code cannot be recovered.
Analyzing Discount Code Performance
To track the success of your discount codes, be sure to keep an eye on the performance metrics in your Shopify dashboard. Look for metrics such as the number of times the code was used, the total amount of revenue generated, and the conversion rate for customers who used the code. Use this information to make informed decisions about future discount code promotions.
The Bottom Line
Creating discount codes on Shopify can be a powerful tool for increasing sales and driving customer loyalty. By following the steps outlined above, you can create effective discount codes that help you achieve your business goals. Be sure to experiment with different types of discounts and usage restrictions to see what works best for your store, and track your performance metrics to make informed decisions about future promotions.