Did you know that discount codes not only help boost sales but also increase conversion rates and retain customers on TikTok Shop? Setting up effective discount codes is one of the key strategies that helps SMEs optimize marketing resources and quickly increase revenue.
According to statistics from DPS.MEDIA, over 70% of customers decide to purchase when they receive an offer via discount code, showing the strong influence of this tool in driving consumer behavior. Therefore, mastering how to create and deploy discount codes on TikTok Shop means you are opening up opportunities to break through among thousands of competitors.
To set up a discount code, first log in to your TikTok Shop Seller Center account, then go to the “Discount Code Management” section and select “Create New Code”. Be sure to fill in all information such as code name, type of offer, applicable conditions, and validity period to ensure the discount code works most effectively.
Next, consider your goals and target customer group when setting up the type of discount code, for example, choosing a percentage discount or a specific monetary amount. Flexibility in designing promotional programs helps you personalize the shopping experience and create a sustainable competitive advantage on TikTok Shop.
Finally, tracking and analyzing the effectiveness of discount codes through reports in Seller Center is an indispensable step to adjust your strategy appropriately. Strict data management will help you better understand customer behavior, optimize resources, and improve marketing performance methodically and professionally.
Understand the role of discount codes in TikTok Shop business strategy
Discount codes drive engagement and sustainable growth on TikTok Shop
Discount code is not just a simple promotional tool but also a strategic lever that helps SMEs create a shopping wave on the TikTok platform. According to research from Nielsen and digital marketing experts, discount codes increase average conversion rates by up to 30% by stimulating the feeling of “getting a deal” and creating an urgent motivation to buy.
More importantly, from the perspective of DPS.MEDIA, the use of discount codes needs to be systematically and synchronously integrated throughout the entire customer journey – from increasing content interaction frequency, enhancing brand awareness to driving stable revenue. This means an effective discount code strategy is not just about offering discounts but also encouraging customers to return, creating long-term value for the business.
Synergistic impact of discount codes with creative content and influencers
Combining discount codes with unique creative content campaigns and collaborations with creator is identified as the optimal trend on TikTok Shop today. For example, a fashion SME brand in Hanoi showed that when integrating discount codes into viral try-on videos with influencers, sales increased by 40% in the first month of launch. This clearly demonstrates the overall effectiveness of multi-channel promotion strategies.
DPS.MEDIA recommends that businesses regularly analyze feedback data and measure results from discount codes through indicators such as usage rate, purchase time, and repeat order frequency to optimize application scope and improve business efficiency.
| Type of discount code | Main advantages | Appropriate application for |
|---|---|---|
| Percentage discount | Creates a clear sense of savings | Average value products |
| Fixed amount discount | Encourages large orders | Loyal customers |
| Free shipping | Reduces barriers to online shopping | New users |
Choose the right type of discount code for product characteristics and target customers
Optimize campaign effectiveness by choosing discount codes wisely
To optimize discount campaigns on TikTok Shop, it is important to consider product characteristics along with the target customer group. Discount codes are not just a tool to stimulate purchases but also a strategy to build loyalty and enhance customer experience. For example, with trendy fashion products, percentage discount codes (1% off) are often more effective as they create a clear and quick sense of savings, suitable for Gen Z customers who value style and agility. Conversely, for technology items or premium products, fixed amount discount codes help customers perceive real value and make investment decisions more easily.
DPS.MEDIA proposes a discount code classification structure based on the following criteria:
- Percentage discount code: suitable for products with low to medium value, encourages buying in larger quantities.
- Fixed discount code (amount): suitable for high-value products, helps customers clearly reduce spending pressure.
- Versatile or combo code: stimulates additional purchases, optimizes average order value (AOV).
- Discount code by customer group: personalizes offers based on purchasing behavior and customer segmentation to increase engagement.
Case study: Applying discount code strategies on TikTok Shop
| Type of Discount Code | Product Features | Customer Target | Results |
|---|---|---|---|
| % Discount Code | Children's Fashion | Parents aged 25-35 | Increase conversion rate by 18% after 1 month |
| Fixed discount code | High-end household appliances | Middle-aged customers | Increase revenue by 22% and AOV higher by 15% |
| Combo code | Cosmetics & accessories | Women aged 18-30 | Customers buy additional products increased by 30% |
experts from DPS.MEDIA emphasize: “An accurate discount code strategy is the shortcut that helps SMEs on TikTok Shop effectively tap into the potential of both current and prospective customer groups, contributing to increased revenue and long-term brand building.” Understanding and flexibly applying it will create a strong competitive advantage in the increasingly diverse and challenging digital marketing environment.
Detailed guide to setting up discount codes on the TikTok Shop platform
Initial steps to optimize discount codes on TikTok Shop
Set up discount codes on TikTok Shop is not simply about creating a promotional code to stimulate users, but also an art of combining pricing strategy and customer experience. DPS.MEDIA always emphasizes the importance of clearly defining the goal of the discount code: is it to increase traffic or boost conversion rate? A recent study from Journal of Marketing Analytics shows that personalized discount code campaigns based on shopping behavior can increase conversion rates by up to 30%.
To get started, sellers need to access the shop management section, select “marketing” and “Discount Codes”. Next, declare the following important information:
- Discount code name: easy to remember, related to the program.
- Discount value: percentage (1%) or specific amount.
- Conditions of application: minimum order value, applicable products.
- validity period clear, to avoid misunderstandings.
Strategic benefits and practical case studies
A real case from an SME partner in Hanoi showed that when applying appropriate discount codes in a TikTok Shop campaign, revenue grew by 251% in just the first 7 days. This proves the power of combining thorough preparation and customer data analysis to optimize the benefits from discount codes.
DPS.MEDIA recommends using the “discount stacking” intelligent feature – allowing customers to use multiple promotions simultaneously – to enhance the experience and retain loyal customers. However, careful consideration is needed to avoid excessive discounts that could reduce long-term profits.
| Type of discount code | Advantages | Disadvantages |
|---|---|---|
| Percentage discount code (1%) | Easy to attract; Creates quick purchase stimulation | Risk of affecting profit if not controlled |
| Fixed discount code | More accurate cost control | Less attractive for large orders |
| Free shipping code | Increase average order value | Careful setup of applicable regions is required |
Optimize discount code effectiveness through user shopping behavior analysis
Deeply understand user behavior to personalize discount codes
Shopping behavior analysis not only helps you identify potential customer groups but also enables you to design more suitable discount code strategies. According to research from Nielsen and TikTok Shop reports, young people often respond positively to discount codes with interactive experiences, while middle-aged customers prioritize offers tied to essential products.
DPS.MEDIA applied this model for an SME in the children's fashion sector, increasing the discount code usage rate by up to 35% in just 3 months, by segmenting the customer base based on browsing behavior and purchase history on TikTok Shop.
Discount code optimization strategies based on behavioral data
- Set flexible discount levels: Don't apply a flat discount rate; instead, consider higher incentives for frequent customers or large orders.
- Short-term usage integration: Optimize urgency to increase conversion rates with clearly timed discount codes.
- Use behavior-based promotions: For example, give codes to customers who have added products to their cart but haven't checked out.
Illustrative table of discount code campaign effectiveness based on customer behavior
| Customer type | Discount rate (%) | Code usage rate | Revenue Growth |
|---|---|---|---|
| New customers | 10% | 25% | +15% |
| Returning customers | 20% | 45% | +30% |
| Potential customers (abandoned cart) | 15% | 40% | +22% |
As the table above shows, segmenting customers and personalizing discount codes not only enhances user experience but also directly increases revenue effectively. According to DPS.MEDIA, data-driven thinking is truly the key in managing digital marketing campaigns on the TikTok Shop platform.
How to track and evaluate the effectiveness of discount code campaigns
Identify key performance indicators (KPIs)
To properly assess the effectiveness of discount code campaigns on TikTok Shop, businesses need to set specific and realistic KPIs. You can focus on:
- Order conversion rate: compare the number of orders using discount codes with the total number of orders.
- Average order value: if the campaign helps increase the average spending, that's a positive sign.
- Customer retention rate: whether customers return to purchase after using a discount code.
DPS.MEDIA emphasizes that setting clear quantitative goals, for example: “increase orders using discount codes by 20% in the first month” will make it easier to track and optimize in a timely manner.
How to collect and analyze campaign data
TikTok Shop provides a dashboard platform to directly monitor discount code performance, but combine it with external analytics systems like Google Analytics or specialized CRM software for a more comprehensive overview.
- Measure the traffic source from TikTok to the shop before and after implementing discount codes.
- Analyze the purchasing behavior of each customer group, for example, existing and new customers.
- Evaluate the timing and time frames when customers use codes the most to promptly adjust marketing strategies.
As in the case study of an SME in the fashion sector that DPS.MEDIA accompanied, they reduced advertising costs by 15% but increased order volume by 30% thanks to closely monitoring and quickly adjusting campaigns based on real data.
Summary table evaluating the effectiveness of discount code campaigns
| Indicators | Measurement methods | Significance for the campaign |
|---|---|---|
| Code usage rate | Number of uses / Number of codes issued | Evaluate the attractiveness of the code to customers |
| Conversion rate | Number of orders with code / Total visits | Measure the effectiveness in stimulating purchasing behavior |
| Additional revenue | Campaign revenue – Normal revenue | Measure direct profit from discount codes |
| New customer rate | Number of new customers using code / Total customers using code | Metric for expanding the customer base |
Tips for building discount code programs that attract and retain long-term customers
Create a balance between customer benefits and business goals
DPS.MEDIA It is recognized that an effective discount code program is not simply about “discounts” but must also create sustainable value and encourage customers to return. Instead of offering overly deep discounts, businesses should design flexible discount codes, such as percentage-based discounts or attractive gifts for the next purchase. This is a way to stimulate customer loyalty while not excessively eroding profits.
Research from Harvard Business Review has shown that a tiered discount strategy helps retain loyal customer groups without affecting one-time buyers. Therefore, you should consider using different offers based on order value or purchase frequency when setting up discount codes in TikTok Shop.
Use customer data and behavior to personalize discount codes
The application of artificial intelligence and data analytics in TikTok Shop allows businesses to create discount codes based on actual behavior, such as visit frequency, favorite products, or purchase timing. Customers will feel that you understand and care for them personally, thereby increasing conversion rates and long-term retention.
- Customer segmentation: Group by new customers, loyal existing customers, or those who often abandon carts.
- Determine appropriate discount levels: New customers may receive bigger offers to encourage trial.
- Create time-limited discount codes: Create a sense of urgency and increase engagement.
Illustrative examples of effective results from DPS.MEDIA's projects
| Campaign | Targets | Type of discount code | Results achieved |
|---|---|---|---|
| Online course | Increase registration rate by 20% | 15% off for first purchase | Increase sales by 23%, retain 65% of re-enrolling students |
| Cosmetics brand | Reduce cart abandonment rate | Discount codes based on order value | Reduce order loss risk by 30%, increase loyal customers by 12% |
| Trendy fashion | Expand customer base | Limited-time discount codes, gifts included | Reach an additional 15,000 followers, increase new purchases by 18% |
The above numbers not only demonstrate the importance of discount code strategies but also show the power of applying multi-channel and data-driven strategies on TikTok Shop. According to expert Tran Minh Tuan from DPS.MEDIA: “There is no golden formula for discount codes; the important thing is to thoroughly understand your customers to create suitable offers at the right time.”
Integrated coupon code solutions in comprehensive marketing campaigns on TikTok
Benefits of using discount codes on TikTok Shop
Integrating discount codes into TikTok marketing campaigns not only creates a strong motivation to drive instant purchases but also helps businesses build sustainable interaction habits with young customers – the main audience of this platform. According to research from Harvard Business Review, campaigns combining personalized offers increase conversion rates by up to 30%, clearly demonstrating the power of coupons in accelerating purchasing decisions.
DPS.MEDIA often recommends that SME businesses create discount codes with multi-dimensional interaction, such as “buy 1 get 1 free”, or codes that activate discounts for a limited time to leverage the FOMO (fear of missing out) effect on TikTok. Combining these codes with creative, trend-catching video content will help increase organic reach and enhance brand awareness.
Steps to set up optimal discount codes on TikTok Shop
- Log in & access TikTok Shop Seller Center: This is the official platform to create and manage discount codes.
- Choose the appropriate discount code type: Discount by percentage or fixed amount, or coupons applied to specific products/categories.
- Set usage conditions: Set limits on time, number of uses, and minimum order value to balance promotional costs and marketing benefits.
- Optimize message delivery: Combine discount codes with engaging video content and clear calls to action to help viewers easily grasp and take advantage of the offers.
| Discount code type | Advantages | Suitable for TikTok |
|---|---|---|
| Percentage discount code (%) | Easy to attract, flexible according to product value | Appeals to young user groups who love hunting for deals |
| Fixed discount code (VND) | Simple, clear, easy to understand | Suitable for low-priced products or small orders |
| Buy 1 get 1 free code | Increases perceived value, stimulates additional purchases | Effective for fashion, cosmetics, fast-moving consumer goods industries |
Case study: Discount code campaign increases sales by 45% for a cosmetics brand
DPS.MEDIA implemented a campaign combining a limited 20% discount code for 3 days for a natural cosmetics brand on TikTok Shop. The video content used influencer trends combined with emphasizing the discount code to encourage customers to try it. Results recorded a 45% sales increase compared to the previous month, along with a 25% increase in account followers, affirming the spillover and conversion effectiveness of this tactic.
Thus,reasonably leveraging discount codes is the key for SME businesses to make the most of the highly potential and competitive TikTok market today. DPS.MEDIA always emphasizes creatively coordinating content and promotion strategies to optimize marketing effectiveness and build long-term brands.
Negative balance still remains
Setting up discount codes on TikTok Shop is not just a simple demand stimulation tool, but also a strategic lever that helps SME brands make an impression in the minds of target customers. When applied correctly, discount codes not only boost sales but also contribute to building sustainable relationships with consumers.From basic steps like determining campaign objectives, selecting the appropriate discount code type to optimizing the customer reach file – all are the foundation to create effective sales tactics on this e-commerce platform.However,it is important to regularly monitor performance, be ready to adjust and innovate further to not miss opportunities from new trends on TikTok.
At DPS.MEDIA, we recognize that TikTok is not just a place for marketing, but also a space rich in user behavior data, ideal for experimenting and refining digital marketing tactics. SME businesses can expand their exploitation capabilities by combining the use of discount codes with TikTok Ads, KOLs, or content optimization to increase conversions.
If you are considering or have started implementing discount codes, don't hesitate to experiment and learn from real campaigns. The opportunities are huge – the key is how you differentiate yourself.
Are you using discount codes for your TikTok Shop store? Share your opinions or questions below, and DPS.MEDIA opens up engaging and practical discussions for the Vietnamese business community!
