There are a lot of similarities between cart-level promotions and coupons, and some people use them interchangeably. The main difference is that a customer needs to add a coupon code to activate a discount on the cart page. The best way to look at a coupon is as a trigger or additional condition to activate a promotion.
Other than that, coupon conditions and actions used to configure coupons are the same as conditions and actions for promotions. Discounts can be applied to the cart total, specific product, or allow for a gift.
Coupons are special codes that customers need to enter during checkout to get a discount. Various kinds of coupons differ in their usage conditions:
- Public or personal. A public coupon has a single code that any customer can use, while individual coupons have random, one-off codes that only one customer can use.
- Number of Redemptions Businesses should limit the number of usages per campaign, per customer, per day, and per affiliate partner.
- Exclusivity A coupon cannot be used with other coupons or other promotions
- Budget Limit The total amount of discount that can be given away to secure your spending up-front
- Stores & Channels & Countries Merchants can define in what stores or countries a coupon is accepted
- Customer Segment Only customers who belong to a specific customer group can use the coupon
- Coupon validity time Time restrictions define when a coupon can be used
Ecommerce system usually provides a mechanism to generate coupon codes, which can be distributed in various ways.
Published on a website, emailed, or offered to customers after the checkout to be used in future orders. Often, coupons are used as an incentive for the customer to sign up for a newsletter or create an account.