Coupon Code
Also called: promo code, discount code
What is Coupon Code?
A coupon code is a text code that applies a specific discount at checkout. Because each code can be tracked, coupons are how offline and online campaigns are measured.
Why Coupon Code matters
Coupons are measurable discounting — they tell you which campaign, channel or partner actually produced sales. Untracked blanket discounts teach you nothing.
Coupon Code formula
Campaign contribution = Incremental sales × Contribution margin − Discount value given
Only sales that would not have happened otherwise count as incremental.
How Coupon Code works in practice
Use a distinct code per channel and campaign, set an expiry and a usage cap, and check whether redemptions were incremental. Codes leaking onto deal sites is a common and expensive failure.
Frequently asked questions
Yes. An expiry creates urgency and stops old campaigns discounting sales you would have made anyway.