3 weeks ago
- last edited
3 weeks ago
Over the past two quarters we have seen a surge in demand for Promo Codes from our Connect Marketplace. But why? That’s the question we were curious to learn about. So we did two things: we did a case study and we took a look at the data on use cases.
If you’re sales/marketing teams are aiming to drive increased revenue through promotions, there’s a strong chance that it will impact your dev, biz opps, or billings team and increase their workload or slow down the pace launch of any given promotion campaign. The ability to react quickly (or to simply act at all!) with promotions could have HUGE revenue implications.
If you’re curious what the impact of Promo Codes could be to your business, take a look at these three graphs:
In this first graph, you can see the day they launched their first promo code. It was at the start of the holiday sales cycle and they have about 11.6K subscribers at this point.
In this second graph, you can see the impact of their holiday promotion: a 40% increase in their subscriber base to over 18.8K subscribers!
Finally, in this third graph you can see a third jump in their subscriber base from 18.8K in December, to 25.2K two weeks later, a doubling of their user base in less than two months!
So what happened? They launched their first ever promotion offering a free 30 day trial. Then, following the holidays they decided to lower the price of their offering. Finally, the third graph represents a promotion that guaranteed the new low rate for life.
The speed with which they were able to iterate on their promotional offerings was a key to this success. I.e. their marketing team didn’t need to go through their dev ops team to hard code anything on the backend. They didn’t need approvals from their billing team. Because of the full Zuora integration, it was literally about 5 minutes of work to prep for the promo codes launch.
And it represents hundreds of thousands of additional revenue PER MONTH.
This case study represents one moment in time for a B2C customer. Other use cases for promo codes includes:
Discounting via partner channels
Standardizing and tracking assisted sales (we see this use case with B2B companies)
Geo-testing different price points (which we see in conjunction with our Pricebooks app)
Product catalog simplification
An additional consideration to mull over as you evaluate Promo Codes is your internal users and the cross-departmental workload impact to your colleagues if you are looking to beef up your promotions marketing. Customers can certainly build off of the Zuora APIs to create bespoke promo codes functionality. But what is the engineering/dev costs to building, maintaining, and updating such a system? We aren’t familiar with any customers who have yet built a promotion codes app that is as flexible and cost-effective as Promo Codes. But we would love to hear more from the Community about this as well as other use cases and questions!