Discount codes provide an indirect discount that can have a positive impact on demand. In order for sharing providers to benefit from these advantages, the MOQO Discount Code Manager enables the flexible creation and provision of different discount codes. In the MOQO Discount Code Manager, this works easily and digitally.
The Effect of Discount Codes
Imagine the following situation: As part of a marketing campaign, sharing provider Fly Share distributes flyers around town that include a discount code. Student Yasmine, who has never tried a sharing offer before, receives such a flyer including a code. Since the first ride is offered at half price thanks to the discount code, Yasmine takes the opportunity to try out the sharing service from provider Fly Share. After the first trip, she is convinced by the sharing offer and will use the offer of provider Fly Share more often in the future.
In the example of Yasmine and Fly Share, the sharing provider used a discount code and gained a new customer. Discount codes provide an indirect discount that can have a positive effect on demand. They are helpful in customer acquisition as they lower barriers to entry, in customer retention as they show customers their appreciation, in reactivating riders as they can encourage action, and attract frequent riders by offering a one-time discounted ride value.
Statistics also show the impact and accompanying potential of discount codes: for example, 28% of consumers share discount promotions on social media, 71% of consumers then research the discounts online, and 7 of 10 people say they have used discounts from a marketing email in the past week.
To make the management of these discount codes for sharing providers as efficient as possible, the Discount Code Manager was developed. In the manager, providers can create discount codes with different functions themselves and make them available to their customers.
Why Sharing Providers Should Use the Discount Code Manager
The example of Yasmine mentioned at the beginning is one of many cases where discount codes are useful and can be incorporated by sharing providers in their strategies.
The use cases of discount codes and resulting benefits include the following:
Discount codes can be included in marketing campaigns to lower barriers to entry and attract new customers
They can serve as a one-time thank you, for example, following driver feedback
Monthly recurring discount codes, help reactivate drivers
They can be sold as benefit packages
Discount codes can serve as a goodwill gesture
What is the MOQO Discount Code Manager?
So, the feature consists of two components:
1. Discount codes that promise performance in the future.
2. The discount code manager, in which discount codes are created, collected and stored.
At the same time, both sharing providers and drivers can access the Discount Code Manager. However, the available options and functions differ.
The Discount Code Manager for the Sharing Provider
Sharing providers can access the Discount Code Manager via the MOQO portal, create discount codes, manage them and shape them according to their needs. In doing so, the discount codes can consist of letter and number combinations or can be created as speaking codes, for example "#FORTHEENVIRONMENT". The discount codes are also made available via the manager.
In addition, sharing providers can clearly track and measure the success of the discount codes.
The Discount Code Manager From the Driver's Perspective
While sharing providers access the Discount Code Manager via the MOQO portal, drivers manage their discount codes via the app. The Discount Code Manager can be found under "My Profile → Discount Codes". However, drivers can also access it directly in the booking process.
There are three ways discount codes can be added to the manager:
1. Drivers actively enter a discount code themselves in the app. This is the case with public discount codes, as they are distributed to multiple drivers via promotional material.
2. Riders receive a discount code from their sharing provider, which appears automatically in the manager in the app. This happens with automatic discount codes when the sharing provider wants to assign a discount to all riders of a sharing offer or when riders meet certain requirements, such as renewing a subscription or using the Friends Referral feature.
3. Riders purchase a purchasable discount code in the app.
How Can Discount Codes be Redeemed?
Drivers can redeem discount codes by selecting the desired vehicle, clicking "Book now" and selecting "Redeem discount code" before the booking is confirmed. Then they use the + icon to create a new discount code (e.g. from Flyer or Post) or select an existing discount code stored in the Discount Code Manager. The granted discount will then be applied to the booking.
The Different Discount Code Types
In order to map and serve different use cases, the Discount Code Manager offers four different discount codes: Public, Automatic, Personal, and Purchasable discount codes. How the individual discount code types differ from each other, the respective advantages and what to consider when creating them are explained below.
Lowering Barriers to Entry With Public Discount Codes
The sharing provider can create the public discount code in the discount code manager via the MOQO portal, assign it a value, define its validity and specify potential restrictions (for example, that the discount code may be used a maximum of 100 times). This type of discount code is particularly suitable for marketing activities, as the codes can be shared.
Since potential riders receive a more attractive price through the discount code, barriers to entry are lowered and the likelihood that they will try the sharing offer and be acquired as new customers increases.
How can riders redeem a public discount code?
The driver receives the discount code via promotional material and actively adds it himself in the discount code manager in the app. It is important to note that the discount code is not automatically applied to the next booking, but is actively selected from the Discount Code Manager.
Reactivation With Automatic Discount Codes
With automatic discount codes, the provider can set conditions under which discount codes are distributed. This can be the case when riders perform certain actions - for example, when they join sharing, renew a subscription or use the Friends Referral feature. The discount codes, which are then automatically distributed to them, reward them for their action. On the other hand, the provider can also specify that all riders of the sharing offer receive a discount code every month unconditionally and automatically. This can be used, for example, to reactivate inactive drivers.
Option 1 – One-time discount code: This option can be used when sharing providers want to allow all drivers on a team to receive a one-time discount code. For example, this can be a welcome discount when drivers newly join the sharing offer. In this context, the discount code can lower barriers to entry and encourage the rider to get started and use the sharing offer.
Option 2 – Subscription Renewal: If this option is selected, riders will automatically receive a discount code when they renew their paid subscription.
Option 3 – Cyclical Discount Code: The cyclical discount code allows sharing providers to send a discount code to all riders of a sharing offer on a monthly basis.
Example of use of cyclical discount code: Yasmine has been a satisfied customer of Fly Share for quite some time now. However, she has not used the sharing offer in the last few weeks. Just now, however, she received a discount code from Fly Share. The driver takes this as an opportunity to get going again and use Fly Share's sharing service. Yasmine remembers how practical and comfortable it is to drive with the Fly Share cars - and then starts using the sharing service more actively again.
Again, the sharing provider accesses the discount code manager via the MOQO portal and creates the discount code by naming it and specifying a value and validity period. In addition, he can now decide to which sharing offer he would like to provide the discount code and specifies when the discount code is granted via the "Allocation rule" item. In the last step, an email text can be composed to inform the riders about the receipt of their discount code.
Friends Referral Function
The Friends Referral function can also be found among the automatic discount codes. This is a particularly effective marketing measure.
In this option, the sharing provider offers a discount code to the driver in return for a newly recruited driver. To receive this discount code, the rider taps on the gift icon in the dashboard and shares the personal invitation link with acquaintances. Once the friends sign up and take their first ride, they both receive a voucher. In addition, the discount code granted lowers the barrier to entry for the new customers and also provides the existing customer with the incentive to continue using the sharing service.
How can riders redeem an automatic discount code?
The discount code is automatically applied to all riders of the selected sharing offer at the next booking.
Driver Management Support With Personal Discount Codes
Yasmine drives the BMWi3 from sharing provider Fly Share as usual. She is very satisfied with the service and leaves positive user feedback in the app store. As a result, the sharing provider decides to send Yasmine a personal discount code so that she can take the next ride at a lower price. In doing so, he shows her appreciation and thus further binds her to his offer.
Now imagine the following situation: Car sharing user Yasmine cannot open her reserved BMWi3 as usual. Although she is quickly helped by customer service so that she can continue her journey after just a few minutes, the sharing provider Fly Share would like to send her an apology as a gesture of goodwill. One day later, Yasmine receives an email in which the sharing provider apologizes for the inconvenience and adds a discount code - which is automatically added to Yasmine's discount code manager without Yasmine having to add it herself. Once Yasmine starts her next sharing ride, she can easily book the discount code with her ride, and manage the ride at half price.
Here, the personal discount code was used as a goodwill gesture. In this way, provider Fly Share shows its customer that it wants to keep her as a customer. As in the previous example, Yasmine feels valued, her satisfaction with the offer increases, and therefore remains a loyal user of the offer.
How can drivers redeem a personal discount code?
The driver automatically receives the discount code in the app and is informed about it by email. In order for the discount code to be charged, the driver actively selects it when making the desired booking.
Offer Benefit Packages With Purchasable Discount Codes
By offering purchasable discount codes, sharing providers can offer benefit packages to these drivers, as drivers invest less money in the same route compared to normal rates. This reduces the hourly rate and makes the sharing offer an attractive option to other sharing providers and offers:
Yasmine usually takes the train to get to work. However, next week she has a series of training sessions scheduled in a city further away, so she decides to use an offer from local car sharing provider Fly Share. Normally, its hourly rate is €10. With the purchasable discount code available in the discount code manager, which is aimed at frequent drivers, Yasmine can purchase a €100 trip value for €50. This allows Yasmine to use the sharing vehicle to drive to the training sessions, but benefits from the discount code as she pays a lower hourly rate. For the next training in two months, Yasmine will definitely use Fly Share's sharing offer again.
It is important to note that the amount should be used within the specified time, otherwise it will be forfeited. Sharing providers are provided with a complementary sales process through the acquirable discount codes.
How can drivers acquire a purchasable discount code?
Drivers can purchase purchasable discount codes using the following method: My profile → discount code manager → select + icon → select and purchase purchasable discount code → check means of payment and select payment method → make a paid purchase.
How can drivers redeem a purchasable discount code?
Driver purchases discount code in the app and thus automatically adds it in the discount code manager. When booking, driver can actively select the code to be charged.