A coupon is a strong tool when it has a specific purpose. When it becomes a habit, it turns into a permanent price cut for nothing in return.
Tie every coupon to one goal
- New customer: first-order only, limited to one use per account.
- Raising basket size: a discount unlocked above a threshold higher than your current average.
- Clearing stock: restricted to specific products or a category.
- Winning back a lapsed customer: a personal, time-limited code.
Conditions to always set
- An expiry date — an endless coupon spreads to coupon sites and is used forever.
- A cap on total uses and uses per customer.
- A minimum order value.
- Does it cover shipping? Does it stack with other offers?
Calculate the discount against margin, not price
Twenty per cent off a product with a thirty per cent margin means giving up two-thirds of your profit. A percentage that looks small against price can be enormous against margin.
Public code versus personal code
A public code is easy but gets shared far beyond your target audience. For sensitive campaigns, use personal single-use codes.
Watch one effect
Did orders actually increase, or did the same customers buy at a lower price? If order count did not rise, you paid a discount for nothing.