Coupon Code

A coupon code is a short word or number that a customer types at checkout so the shop takes an agreed amount off the order.

Also known as discount code promo code voucher code

Definition

A coupon code is a short word or number a customer types at checkout to get money off. The shop decides what the code actually does. It might take ten percent off the basket, a fixed amount off, or make delivery free. The code itself is only a label, so what matters is the set of rules behind it.

Every code carries a small set of rules. They say when it starts and when it stops, which products it works on, and the smallest order it will accept. They also say how many times one person may use it, and how many times it may be used at all. A code with no rules is an open door. Linkysoft has watched a code written for twenty event guests reach a deals forum by Friday, then get used thousands of times in one weekend.

The minimum order is the rule that protects your profit. If you give fifty off and your average basket is sixty, you have paid a customer to shop with you. Set the floor above the basket you want to encourage, not below it. Expiry matters for a different reason. An old code sitting in someone's notes app can come back a year later, and by then the prices it discounts have changed.

The real losses hide in stacking, which means using two or more codes on the same order. A welcome code, a newsletter code and a free delivery code together can wipe out a basket's profit. The order still looks healthy in the daily total, so decide in advance whether codes may combine. Then test it with a real order before you announce anything. In Storek each code says plainly whether it may sit beside another one.

Abuse is the other cost. One person opens six accounts with six email addresses and uses the new customer code six times. So tie the limit to something harder to repeat, such as the card or the phone number. Then read the report for any code used far more often than you expected. When Linkysoft builds a shop as a custom web application, the coupon screen is usually where the first money leak shows up. Ask any supplier what each code cost you, not only how often it was used.

Questions about Coupon Code

Why is my coupon code not working?
Usually one of its rules is not met. Check the dates, the smallest order it needs, whether it covers that product, and whether the same person has already used it.
Can a customer use two coupon codes on one order?
Only if you allow it. Most shops switch stacking off, because two or three codes together can take the whole profit out of an order and it still looks like a good sale.
How do I stop one person using a new customer code many times?
Tie the limit to something harder to repeat than an email address, such as the payment card or the phone number, and also cap how many times the code may be used in total.
Should coupon codes have an end date?
Yes. An old code can reappear a year later, after your costs and prices have moved, and honouring it then is far more expensive than it was on the day you wrote it.
How do I know if a coupon campaign made money?
Compare what the codes gave away with the profit on the orders that used them, then ask how many of those buyers would have bought anyway. A code used mostly by regulars is a discount, not a campaign.

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