Coupon
A coupon is a voucher that gives a discount or a free item when it is shown at the till. Unlike a loyalty reward, which a customer earns over several visits, a coupon is handed out to prompt one specific purchase.
What a coupon is
Coupons can take off a percentage, a fixed amount or the price of one item, and they usually have a validity period. They used to be clipped from newspapers; today they arrive as codes, messages or cards in the phone. Rewardly has a discount card type for a standing discount, while one off offers are usually sent as a message to card holders.
How it works for a café, salon or restaurant
- A café gives new members a coupon for a free pastry with their second coffee.
- A salon sends a coupon for a product with the next treatment.
- A restaurant offers a lunch coupon for a slow weekday.
Each coupon has one job, so the business can tell afterwards whether it worked.
What to watch
A coupon gives away margin, so tie it to a purpose, such as a second visit or a quiet hour, and set an end date. Avoid sending coupons so often that customers stop paying full price. And count how many were redeemed, not how many were sent.