The coupon is a brand asset, not just a code
A well-designed coupon does two things at once: it applies a discount and reminds the customer of the brand every time they type it. That's why "SUMMER-FRESH" beats "X9KQ4P2L" — the first tells a story, the second doesn't. Brands that get this turn the coupon into a mini campaign message.
Three formats that work
- Word + word: "SUMMER-FRESH", "BLACK-FRIDAY", "YEAR-END". Memorable, easy to communicate on radio or podcasts.
- Word + number: "SAVE20", "EXTRA15", "NEW10". The number signals the benefit directly.
- VIP / per-customer: "VIP-X3K9P", "JANE-A2BC". Conveys personal exclusivity.
How to choose the discount (without losing money)
- Start from margin, not percent. If gross margin is 35%, a 30% off leaves you 5% — barely covers ops.
- Think of average order value. 10% off $200 ($20) excites less than a flat $25.
- Consider shipping. Sometimes "free shipping" converts better than "20% off" at the same total cost.
- Set minimums. "10% off on orders from $100" lifts AOV 25-40%.
- Cap the time. No urgency, no conversion.
Rules that save headaches
- Stacking: define if it combines with other promos.
- Excluded products: new launches, premium brands, low-margin SKUs.
- Minimum spend: prevents deal hunters from buying one cheap item and crushing margin.
- Clear expiry: 7-14 days for campaigns, 24-48h for flash sales.
- Uses per customer: 1 per person prevents abuse.
Avoiding leaks to coupon aggregators
The silent enemy of any program: aggregator sites publishing your code and absorbing margin without bringing new customers. Three tactics:
- Unique-per-user codes instead of one global code.
- Monitor traffic sources. Spikes from strange domains? Rotate the code.
- Distribute via private channels (authenticated email, loyalty program).