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Using Promo Codes to Grow Online Grocery

We’ve received mixed review about the success of promo codes in online shopping, so I wanted to learn more about what works, what doesn’t, and how we can improve marketing efforts with promo codes. I reached out to our partners at Rosie to see what their data can tell us. Alyssa Nappa, head of Shopper Marketing at Rosie wrote this blog post for us to share with you. Take it away, Alyssa!

Incentivizing customers with promotional “coupon” codes is a proven strategy for growing your online grocery service. Whether your customer is placing their first order or their tenth order, promotional codes will entice them to return to your online store for their grocery needs.

At Rosie, we encourage all of our retailer partners to offer promotional codes in their marketing materials, regardless if they are just launching their eCommerce service or have been live on the platform for several years.

There are three popular types of promotion codes; a flat dollar amount off the total order, a percent off the total order, and a free pickup or free delivery. Shoppers take advantage of promotion codes that are for a flat dollar amount more frequently than those that are for a percent off or for free pickup or delivery. The breakdown of promotional code usage on the Rosie platform is below:

  • 79.2% of promotion codes redeemed are for a flat dollar amount off
  • 10.9% of promotion codes redeemed are for a percent off
  • 9.87% of promotion codes redeemed are for free delivery or free pickup

Since the flat dollar amount promotion codes are redeemed most, consider using codes like $5 or $10 off in the marketing materials that reach the majority of your community, such as your weekly ad.

Rosie recommends using different promotional codes in each print or digital marketing tactic, to track the effectiveness of each marketing tactic with your customer base. Not only are you incentivizing your customers, but you’re also gaining critical information on each marketing tactic you’re choosing to invest in.

For example, if you are planning to implement a marketing campaign with advertisements in your weekly ad, on social media, or through a search engine marketing campaign, Rosie Marketing recommends a strategy similar to the following:

  • Weekly ad promotion: “Shop online with Rosie for all the fresh groceries you know and love. We’ll even deliver right to your door! Plus, use code WELCOME10 to save $10 on your first order.”
  • Facebook promotion: “Is your calendar booking up? Save the time it takes to go to the grocery store when you shop online with Rosie. Order groceries in-a-click and use code FACEBOOK to save 5% on your next order.”
  • Search Engine Marketing promotion: “Order groceries on the go with Rosie. FREE pickup on your 1st order with code CURBSIDE. Shop Today!”

Changing customer behavior from grocery shopping in-store to grocery shopping online will require several marketing campaigns, and most importantly, valuable and enticing promotions. Promotion codes will help you drive customers through the marketing funnel and try your convenient, time saving service.

Thanks to Alyssa for the valuable insights and suggestions! You can learn more about Rosie at rosieapp.com. If you’re interested in using promo codes to market your online grocery or want to learn more about online grocery, please contact me and we’ll get started!

Why do I work at AWG? “I love being a part of a fun team that creates unique ways to help independent grocery stores grow their businesses. It combines a few of my favorite things: marketing, food, and fun. Who doesn’t want to talk about food all day?” -Jimmy