
In this article, I will go over the pros and cons of digital coupon promotions, or promo codes for short. I will talk about how to design your coupon marketing strategy, how to choose your campaign goals, and personalize your coupon codes with real time customer data. You will also learn how to distribute and track your coupon campaigns.
Coupon marketing is a clever tactic used by businesses to entice customers to make a purchase by offering discounts or special deals. It's a win-win situation – customers get to save money, while businesses get to increase sales and customer loyalty.
Coupons can come in many forms, from traditional paper coupons to digital codes and mobile apps. And the best part? They can be used for a variety of B2C and B2B products and services, from groceries and clothing to travel and entertainment in both offline and online settings.
Moreover, coupons can be personalized or have specific redemption rules that define desired redemption conditions, making them a versatile marketing tool throughout the customer journey.
There are two main types of promo codes:
Coupon codes have already become sophisticated marketing tools, which not only drive sales, but also help in building brand image and customer loyalty. By using a modern infrastructure, coupon campaigns are also a source of tracking data for CRM, used to build and continuously improve your marketing efforts in general. Let’s have a look at some statistics that show how common the use of coupons has become:
Learn more: 23 coupon statistics for 2025
Coupons can help almost every business type and size, if only a coupon marketing strategy is planned according to the current budget and clear marketing goals.
Here are some benefits that come with a well-planned coupon marketing strategy:
Learn more: How to calculate the ROI of coupon campaigns?
Coupons, just like any other business tool, carry some hidden risk that you need to be aware of before jumping head-on into discounting.
Learn more: How to prevent cart abandonment with coupon codes?
Learn more: How to prevent coupon fraud?
Your coupons should be easy to use, easy to remember, and make the checkout process a piece of cake for the users. Here are some universal tips on what the coupon codes should look like:
Learn more: How to ensure a memorable coupon validation experience?
Before deploying your coupon campaign, first, determine what you want to accomplish. Here is a list of coupon marketing goals that can help you with planning your next coupon campaign:
1. Customer acquisition – whether you want to enter new markets and offer an incentive for first purchases or give a referral discount, coupon campaigns are a fantastic way to bring in new customers.
2. Upselling & cross-selling – some products or services are seasonal. You can improve your sales in those times by using discount coupons. A good example is airlines offering coupon codes in the low seasons. With coupons, you can also grow sales of specific items by selling it in a bundle with a discount voucher. If you have slow-moving items, discontinued or close to expiry date products, you can use discount coupons to get rid of that stock faster.
3. Sorry coupons – if you face customer complaints, you can offer them sorry coupons or the value of the service or product returned as a voucher for future use. This is a very popular strategy in the hospitality industry.
4. Getting customer data or consents – you can incentivize newsletter subscriptions, loyalty program joining, profile creation, double opt-in, cookie consent, data tracking, and more with discount vouchers. A very popular coupon strategy is to offer a discount for the first purchase after a newsletter subscription. With the looming cookieless future around the corner, incentivizing users to allow data tracking can be a winning strategy.
5. Getting customer feedback – you can use coupons to encourage customers to take part in a short survey about your brand. Finding out more about potential pain points and fixing the usability of your site and the attractiveness of your offering is worth a 20% discount. By giving vouchers, you can also incentivize user-generated content or reviews.
6. Sales goals – you can activate dormant customers by sending them a limited-time offer containing discount vouchers. Discount coupons can also motivate customers to add more items to their basket to get the desired discount or free shipping. Alternatively, coupon marketing can be a tool to decrease cart abandonment. You can send emails, push notifications or other types of communication after the customer abandons their basket, offering a time-limited special offer if they complete their purchase within that time limit.
When you have determined what you want to accomplish with your coupon campaign, you can start evaluating what to offer to achieve that goal. You can research your competitors to see what kinds of discounts they are offering. The best approach is to simply ask your potential customers (through, for example, UX research, user groups, A/B testing) what kind of discount they would appreciate most.
Here are some examples of incentives you could offer to your customers in a coupon campaign:
How much of a discount to offer in your coupon campaign?
This is a tough question and even asking your customers may not give you the correct answer. A good coupon marketing strategy relies on offering lower discounts and analyzing the response. If you are not meeting your goals, you can discount further. Try to find the minimum discount level that will increase the purchase rates enough to meet your goals. Do not go below your margins unless you need to sell out discontinued, slow-moving, or expiring products.
You have most likely already heard that personalization is paramount to a successful coupon marketing strategy. I guess you also heard or even experienced, the overwhelming privacy hiccup amongst modern consumers. In these circumstances, using personalization in your coupon marketing becomes thin ice, which needs to be trodden upon lightly.
Does it mean it is better to give up personalization? Of course not. The key to moving freely in the field is ensuring a proper balance between “loss” of privacy due to revealing personal data, and benefits the consumer gets in exchange.
43% of consumers agreed that they would exchange personal data with companies to save money through personalized promotions, discounts or deals.
To offer relevant deals, which let your clients save money, you need to first know your audience. This can be done by incentivizing their consents to track their behavior, access their data, asking them to fill out their profiles, preferences, or surveys. The beginning of the personalization process starts with getting a proper customer data platform and the data to feed it, defining which data you want to collect, and ensuring data quality. Once that data and customer segmentation are ready, you can start with promotion personalization.
Some ideas for the customer data to be collected:
Once you have the CRM or CDP in place, full of quality data, you can connect your voucher management software with that data to use it for coupon personalization. You can use the customer data to run advanced promotions, for example, a 20% off coupon voucher for children clothing only for those customers who are based in Germany, between 25 and 40 years old, who have purchased at least once from your company and who have children or have purchased any clothes from children category before. This level of personalization would not be possible without a proper database and coupon automation software.
Learn more: Why personalization is on every marketer's agenda?
Besides defining your campaign goal, the incentive, targeted segment, and personalizing your campaign, you should also think about the campaign limits. You should keep in mind your target market and the goal of the campaign to define which limits to use. You should definitely introduce some limits, at least to protect yourself from fraud. Here are some ideas of the limitations you could implement in your campaigns:
Where you place your coupons is a big part of your coupon marketing strategy. There are many channels you can use to promote coupon codes. You should investigate where your customers spend the most time and then try those channels. You can then see the open rates and redemption rates and adjust your coupon distribution strategy accordingly. Of course, the preferences will depend on the customer segment (mainly on the customer age and location) so you should use different channels for different customer segments. We have listed some channel ideas for you below.
Thanks to websites like this, your coupons can reach customers who haven’t heard about your brand yet but look for specific products. It is a chance to compete with the greatest giants and win new acquisitions. Examples: Groupon, RetailMeNot.mPlace coupons in the right category, as a mistake like this, can burn your budget in a blink of an eye. Also, share only those coupons you want to go public and viral.
If you have any business partners you could offer special coupons for their customers. They could then promote your coupons on their websites, social media, and other organic channels. You can do the same with their discounts. That way, you can get some new customers from their network and vice versa.
Email coupon marketing has one significant advantage – it can be highly personalized. It means extra points to their marketing power and a chance to build 1:1 interactions with potential buyers. You can also send discount codes exclusively to the newsletter subscribers or loyalty program members to promote more brand interactions among your audience
Social media can be a great tool for coupon distribution. You can reach your current followers by posting organically on your feed or in your stories or using social media for acquisition campaigns and placing the coupons in paid ads. You can also give coupon codes to influencers so that they share them with their audience. This can be a great way to access new customer segments. You could pay your influencers per content piece or a provision from sales associated with their discount code.
SMS open rate is one of the highest of all the messaging channels. Phones are considered personal devices and customers usually check all messages they get (as opposed to email, where they are used to receiving and ignoring massive amounts of spam). To make the most of SMS, you should combine it with geo-targeting. SMS gives you a chance to catch customers right in front of the store, and a coupon makes the message a real incentive.
Push notifications are a great way to distribute discount coupons, especially if they auto-apply the coupon, let customers copy the code or take them to the promotion’s landing page. Otherwise, they have the same drawback as pop-ups as they are not permanent placements and, once read, will disappear (together with the discount code).
The popularity of live chats is continually growing. Besides serving support requests, you can leverage your live chat to build an outstanding customer experience and boost sales. How? By launching flash sales, personalized campaigns, and other coupon campaigns through a live chat.
Your website is another highly recommended coupon placement spot. Here are some site components that you can use for effective coupon distribution:
If you are going to offer printed coupon codes, here are some ideas for placements you can use:
Television, radio, cinema and Netflix, HBO, Hulu, etc. Lots of people still watch cable television and even more watch streaming channels or listen to the radio (or Spotify). Those are great ways to advertise your promotion. Remember to make your discount code very short and easy to remember if you want to place it in such an advertisement as your viewers will probably not be able to note it down. It is best if, in addition to this ad, you will place your discount on your main page just in case someone remembers only your company name and looks up the discount online. The same goes for brick and mortar establishments – hang the poster on your front display if you advertise it in mass media, to make it easy for people to find if they did not memorize the code.
Each of these channels can be a good choice, but only when combined together can they really work great. Whatever channels you decide to use, keep in mind that people strive for a genuinely omnichannel experience these days. It means they want a seamless journey when changing from online to offline mode. The way you sync your online coupon marketing with the in-store/offline experience decides its final efficiency and results.
Coupon ads design is an important part of your coupon marketing strategy. There are four steps to designing coupon ads that convert:
Learn more: How to design the best UX for coupon codes?
Here are some real examples of eye-catching online coupons:



The technology stack is the base of your coupon marketing strategy. You can start with a simple coupon software that allows you to create a coupon campaign with limited options. You can even start by generating a list of randomized codes and setting them up in your pricing software as coupon codes that will generate a simple discount, let’s say $20 off. When it starts to become more complicated is if you want to, for example:
In that case, you will need a more advanced voucher management system.
Having a specialized coupon management system will save your developers a lot of time and resources as well as cut your time-to-market, as compared to using a limited coupon software or developing a custom solution. If you are considering whether to build or buy a coupon management system you can read our blog post that compares these two options.
You should be able to launch various campaigns from one promotion management software, to be able to manage them in one place, and to combine and stack various types of promotions. You should have the option to launch discount coupons, cart promotions, gift cards, referrals, and loyalty programs from one software.
You should be able to create customer segmentation, the campaign rules and limits based on any data. This will allow for personalization once you connect all of your data sources. Advanced coupon systems allow brands to build multi-effect and dynamic discounts that carry dynamic values and rules based on the shopping context – for instance, code HAPPY23 can grant 10% off to anonymous shoppers and 20% off for loyalty members.
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Your coupon management software should check if a customer profile and current context are eligible for a discount. It should also save the details about successful or failed redemptions and potentially notify you if fraudulent behavior is detected. You should be able to connect the redemption process with every customer touchpoint easily, to make the promotions truly omnichannel.
You should have an option to cancel a redemption if it was granted to a non-eligible customer.
To personalize the promotions you will need to have the customer data reachable from your voucher management software. You can either import the relevant information or connect the two systems: coupon management software and your CDP system.
To personalize or better target your promotions, you should be able to create customer segments, both static and dynamic.
You need to be able to set up who is eligible for which promotion and in what context. To get truly creative, you would need the flexibility to create validation rules based on the:
You should be able to mix different validation rules to create more targeted campaigns and protect yourself from unnecessary spending or fraud.
Your coupon management software should let you control the promotion budget by setting up safety limits that automatically deactivate your promotion. It should be possible to set budget constraints based on:
You should be able to pull the data from your coupon management system to create customer cockpits where your customers would see all their rewards and incentives from all campaigns you are running. This will take the heat off customer support agents by helping the customers to self-serve.
A landing pages creator that creates responsive website pages is nice to have. Landing pages creator speeds up greatly time-to-market and let marketers create the campaigns by themselves. It should contain a couple of page templates, reusable widgets, and e-mail collection forms. It should have branding possibilities.
You should be able to add your branding to the landing pages, messages, and customer cockpits. If you want to fully customize your front-end, you should look for a promotion engine that provides purely back-end functionality and can easily connect to any front-end. This is the case with API-first promotion engines. If you want to use built-in front-end capabilities, for example, email designer, landing pages designer, make sure these are customizable.
To engage customers in the right context and at the right time, you should be able to distribute your coupons omnichannel to all possible existing and future channels. If you can manage your coupon campaigns and distribute them from one place, it will help you to distribute them faster and to maintain messaging and data coherence across platforms.
You should be able to automate the incentive delivery, for example, based on some triggers, like a customer entering a specific segment or performing a specific action on your website.
To make your work more efficient, you might want to have a possibility of creating bulk updates – changing or deactivating multiple vouchers or promotion tiers, uploading customers or products in bulk.
Having a campaign editor that can be used by marketers without the need to program each campaign is a must.
Marketers, sales and Customer Service Agents should be able to, for example:
Your coupon management software should let you establish roles and access flow for your team members to prevent any unauthorized changes. Team members from customer service shouldn’t be able to launch new campaigns, but they should assign an “apologize” coupon for a customer. Junior marketers shouldn’t be able to give 50% off discounts for the whole inventory, but they should be able to compile a performance report from A/B tested campaigns. You should be able to create specific read/write, read-only, no-access permissions for every team member or partner.
You should be able to get some insights into the performance of existing campaigns so that you can plan the next ones better. The most efficient solution is to let your marketers track any promotional campaign without wasting developers’ time. Therefore, your coupon management software should have built-in tracking that does not require a set-up done for each campaign.
Make sure that your coupon management software has an up-to-date, understandable manual so that your employees/colleagues can use it as self-service.
One of the important things you should keep in mind is involving the legal department in making sure the data storage, processing, and all consents they collect are compliant with the local laws. Keep in mind that they might not be the laws that apply to your company based on your location but the laws of the countries where your customers are located. This might be very complex if you have an international business online, with many customers coming from different countries.
A couple of topics to be on top of:
Developers’ time is not cheap. There are a lot of more important projects in your backlog than simple changes to the promotions, which could b potentially done by your Marketing or Sales departments. You should ensure that the solution you implement will reduce maintenance and running costs to the minimum.
The best way to do that is to go for an API-first solution. API-based coupon management software will make implementing all the previously mentioned features faster and cheaper as well as allow for plenty of customization.
There are a couple of ways to optimize your coupon marketing strategy. Most of them are based on trial and error and require you to measure the results, so implementing tracking is the basis for it. There are two main approaches to optimizing coupon campaigns:
Doing a test run with smaller segments can help you determine which strategies are the most effective. This can also help to keep you from offering a discount that is too big and cuts into your profits.In the beginning, you could run small campaigns with diversified parameters, such as discount value, type, and duration. You must be patient and aware that it will take some time and numerous experiments to figure out what works best for your business.
This one is more complicated as it requires dedicated software that would show different campaigns to different people in a randomized manner. On the other hand, the results are more straightforward and obtained in a more reliable way than if you were just launching small experiments. If you have or can pay for software that allows you to A/B test your campaigns, we believe this is the best way to optimize your campaigns.
A great coupon marketing strategy requires a comprehensive coupon management system that can be connected with various data sources and distribution channels. It should also enable launching personalized and easily manageable promotions at scale.
Coupon management software is the basis for launching effective coupon campaigns. You should start with planning your requirements, finding the right software, and then launching and optimizing your campaigns. We hope this guide helps you go through all the phases from planning to implementation of your next successful coupon campaign.