Discount code
Discount code
E-commerce
A code customers enter at checkout to reduce the price of an order. Also called a promo, coupon or offer code.
What is Discount code?
Discount codes come in a few common types: a percentage off, a fixed amount off, free shipping or buy X get Y. They can be public (shared in ads or on social media) or unique, single-use codes sent to one customer.
Rules keep codes profitable. Brands often set minimum order values, product or collection limits, expiry dates and limits on how many times a code can be used. For subscriptions, a code can apply to the first order only or to every renewal, which makes a big difference to lifetime revenue.
Example
For example, a code for 20% off the first order of a $40 subscription saves the customer $8 once. The same 20% applied to every renewal would cost the brand $8 on every order for as long as the customer stays.
Why Discount code Matters
Codes are a simple way to drive action, but the rules behind them decide whether they grow profit or just give it away.
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