All customers like to save money when they are shopping and often search for discount codes.  There are even apps to help them save more money by comparing prices or offering discounts.  For example, Capital One Shopping has more than 17 million users. 

Discount codes have been used for years and remain a popular way to save money when shopping online.

Here are some of the benefits of discount codes for your business. 

  • Increases oxytocin levels in customers.
  • Improves customer loyalty
  • Reduces the cost of customer acquisition
  • Increases lifetime value

Read on to learn more.

Discount codes increase oxytocin levels

Customers respond well to promotions that offer free gifts or bonuses.  In fact, did you know that using Promo codes actually boost oxytocin levels in people?

This may be why customers respond so well to these types of offers.  These little incentives increase oxytocin levels in the brain, the hormone responsible for feelings of happiness.

It’s a good idea to consider using these codes to attract new customers or reward existing ones.  A little extra incentive can do wonders for the customer experience.

In addition to its positive effects on our health, coupons can also help us make better choices.

A recent study showed a positive link to using discount codes for online shopping and a persons feeling of wellbeing.

In fact, when participants received a hobby lobby coupon, their respiratory rate was significantly lower than the controls.

The results of this study are promising and warrant further investigation.

If these findings are replicated in other studies, it will be easier to prove the benefits of coupons to increase oxytocin levels.

Discount Codes Increase Customer Loyalty

In order to reward existing customers, eCommerce stores offer direct price-off incentives.  Such incentives can be in the form of a cash discount or a promotional code that customers can use to purchase a product.

These incentives help customers to stay loyal to a company by making future purchases more affordable.  Most customers, however, prefer to use a discount code when shopping online.

Here are some ways to reward existing customers and increase their loyalty:

Survey results are a good guide to understanding your customer base and determining what they want.

In one study, it was found that 86 percent of consumers would prefer a discount code when they are making a purchase.

Survey results show that many customers are willing to give feedback on a brand if their suggestions were followed through.

Furthermore, customers’ preferences can change when they gain new experiences or are influenced by advice from friends or family.

Discount Codes Reduce The Cost Of Customer Acquisition

Promotional codes are a great way to provide your customers with discounts and offer better shopping experiences.

They are great for both new and returning customers and can be used to increase conversion rates and customer lifetime value.

Promotional codes can be used in banners, overlays, and in emails that remind customers to complete their purchases.

A discount code gives them a feeling of better service, and increases the likelihood that they will complete the purchase.

They Increase Customer Lifetime Value

Companies are always trying to maximize the profits that can be gained from existing customers.

There are many ways to improve this metric.  These include cutting costs, increasing the size of the customer base, and increasing average order value.

Discount codes are one of the easiest ways to boost the value of your existing customers. 

Tips To Increase Your Customer Lifetime Value

Here are some tips to increase your customer lifetime value with Discount codes:

  • First, know which customers are your most valuable.

Segment customers by buying habits, age, gender, and other demographics.

  • If you offer coupons, send those coupons to those customers who are most likely to buy from you again.

You should know how many of those customers are loyal to your brand.

  • If you’re not sure which group your customers are in, consider offering them more valuable content.

For example, you might consider offering a food subscription box, such as Hello Fresh.

You can segment subscribers based on the category they belong to.

Discount Codes Increase Customer Lifetime Value


All in all, discount codes are a valuable marketing tool for your business. They can increase oxytocin levels, customer loyalty, and the cost of customer acquisition while also reducing churn rates.

If you’re not using them already, it’s time to start!

Here are a few tips to get you started:

  • Make sure your discount codes are easy to find on your website and social media pages.
  • Announce new discounts and sales through email marketing and social media channels.
  • Try offering different types of discounts (e.g., percentage off, free shipping, buy one get one free). Keep track of how often you offer discounts and make changes accordingly.

How will you put these insights into action? Let us know your comment below.

You can find more relevant business information in our recent article How to teach your children entrepreneurial values.