Coffee Shop Marketing: Why Promo Codes are a Better Option than Gift Cards for User Acquisition
Coffee shops have used gift cards for everything from loyalty to customer acquisition because it's the only tool they had. But now, promo codes have taken over as the most effective way to acquire new customers.
Joe Success Team
Mar 16, 2023
This post is part of a new series from joe exploring industry trends that are creating big opportunities for independent coffee shops.
For years, coffee shops have used gift cards to acquire new customers, reward existing customers, and provide additional cashflow to stay liquid. However, as technology evolved and smartphones became ubiquitous, promo codes have emerged as the best tool for acquiring customers.
Many coffee shop owners aren't familiar with the use cases and benefits of promo codes simply because the point-of-sale companies that dominate build tools to serve all categories and industries - they don't build specifically for coffee shops.
Advantages of Promo Codes Over Gift Cards
Flexibility
Promo codes are generally more flexible than gift cards, as they can be customized to offer different discounts or promotions. This allows businesses to experiment with different promotions and incentives to see what resonates best with their target audience.
Gift cards, on the other hand, offer a fixed value and are less flexible in terms of customization.
Cost
Promo codes are typically less expensive than gift cards, as businesses can offer discounts or promotions without incurring the cost of producing and distributing physical gift cards. This can be especially beneficial for smaller businesses or startups that may have limited marketing budgets.
Tracking and Analytics
Promo codes also offer better tracking and analytics than gift cards, as businesses can track the performance of each code and see which promotions are driving the most conversions. This data can then be used to optimize future campaigns and improve user acquisition efforts.
Limited-Time Offers
Promo codes are particularly effective for limited-time offers, as they can create a sense of urgency and encourage users to act quickly to take advantage of the promotion. Gift cards do not have an expiration date, which can make them less effective for creating urgency.
Using Promo Codes with joe
With Joe, you can create and customize promo codes to offer discounts and other incentives to attract new customers or re-engage existing customers who haven't visited in a while.
Share them through:
- Social media
- SMS
- Directly through the joe app
Overall, while gift cards can be an effective tool for user acquisition by allowing your customers to purchase them for friends and family, promo codes offer greater flexibility, lower cost, better tracking and analytics, and are particularly effective for limited-time offers.