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Understanding discount types.

Choose the right discount type for your campaign (percentage, fixed amount, free product, bonus points).

Jul 7, 2026

Every voucher needs a discount type. It determines how customers benefit and how the discount is calculated at checkout. Vouchers support four discount types, each suited for different marketing goals.

Type What It Does Best For
Percentage off X% off the order General promotions, scaling discounts
Fixed amount off A set amount off the order Minimum purchase incentives
Free product A named item free Product trials, add-ons
Bonus loyalty points Points credited to the member's loyalty card Loyalty engagement

The Discount tab with the four voucher types as first-class options and the fields for the selected type.

Percentage discount

Take a percentage off the order total.

How it works

Customer order total × discount percentage = discount amount

Example:

  • Voucher: SUMMER20 (20% off)
  • Order total: $80.00
  • Discount: $16.00 (20% of $80)
  • Customer pays: $64.00

When to use

  • Seasonal sales (20% off summer sale)
  • Storewide promotions (15% off everything)
  • Tiered campaigns (10%, 15%, 20% for different tiers)

Maximum discount cap

Protect your margins on large orders by setting a cap in your chosen currency.

Example: 20% off with $50 maximum cap

  • $100 order → $20 discount (20%)
  • $300 order → $50 discount (capped, not $60)
  • $400 order → $50 discount (capped, not $80)

Without a cap, percentage discounts can get expensive on high-value orders.

💡 Currency: When you set a maximum cap, select the currency that matches your business. Enter the cap as a normal amount (e.g., 50.00 for a 50.00 cap).

Examples

Voucher Order Total Discount Final
10% off $30 $3.00 $27.00
20% off $50 $10.00 $40.00
25% off (max $20) $100 $20.00 $80.00
25% off (max $20) $50 $12.50 $37.50

Best practices

  • Popular percentages: 10%, 15%, 20%, 25%
  • Avoid odd numbers: 17% feels random; 15% or 20% feels intentional
  • Always consider caps: Protect against unexpectedly large orders
  • Pair with minimums: "20% off orders over $50" increases basket size

Fixed amount discount

Subtract a specific amount from the order in your chosen currency.

How it works

Order total − fixed amount = customer pays

Example:

  • Voucher: SAVE10 ($10 off)
  • Order total: $45.00
  • Discount: $10.00
  • Customer pays: $35.00

If the order is less than the discount, customer pays $0 (discount doesn't exceed order).

Currency setting

When creating a fixed amount voucher, select the currency that matches your business. Enter the discount as a normal amount (e.g., 10.00 for 10.00 off in your selected currency).

When to use

  • Simple, clear value proposition ("$10 off!")
  • Acquisition offers ("$15 off your first order")
  • Round-number promotions ("$25 off")

Best practices

  • Use round numbers: $5, $10, $15, $20, $25
  • Match to average order: $10 off works well for $40+ average orders
  • Pair with minimums: "$10 off orders over $50" ensures profitability
  • Clear messaging: Customers understand the value

Comparison: Percentage vs. fixed

Order Size 20% Off $10 Off
$30 $6.00 $10.00
$50 $10.00 $10.00
$100 $20.00 $10.00
$200 $40.00 $10.00

Fixed discounts favor smaller orders. Percentage discounts scale with order size.


Free product

Give away a specific product at no charge.

How it works

Customer receives the named product free when they meet requirements. The product name appears on the voucher itself, so staff and customer both see what the offer covers. There is no item-selection step at redemption: staff redeem the code and hand over the named item.

Example:

  • Voucher: FREECOFFEE
  • Free product: Medium Coffee
  • Minimum purchase: $5.00
  • Customer buys $8 sandwich → gets free coffee

When to use

  • Product sampling ("Try our new latte free!")
  • Bundling incentives ("Free fries with any burger")
  • Loyalty rewards ("Free dessert for members")
  • Inventory management (move slow-selling items)

Configuration

Free product name (required for this type) Enter the exact item the customer receives. It prints on the voucher, so be specific:

  • ✓ "Medium Coffee"
  • ✓ "Regular Fries"
  • ✗ "Free item"
  • ✗ "Beverage"

Minimum purchase (optional) Require a minimum spend to get the free item.

Best practices

  • Be specific: "Medium Iced Coffee" not "Coffee"
  • Set minimums: Prevent abuse with purchase requirements
  • Choose strategically: High-margin items or items you want to promote
  • Consider costs: Factor in cost of goods when planning campaigns

Bonus points

Award loyalty points instead of monetary discounts.

How it works

When the voucher is redeemed, points are credited to the member's loyalty card in the voucher's club. The points appear in their balance right away.

Example:

  • Voucher: BONUS500
  • Points awarded: 500
  • Customer redeems → 500 points added to their card in your club

When to use

  • Drive loyalty program engagement
  • Re-engage lapsed customers
  • Reward specific behaviors
  • Bridge gap to next reward tier

Configuration

Bonus points (required for this type) Number of points to award (e.g., 500).

Credit points to card (required for this type) Select one of your loyalty cards. This links the voucher to your loyalty program for reference.

Important: At redemption, points go to the member's loyalty card in the voucher's club, not to the card selected here. If the member holds no card in that club, no points are granted; the redemption still completes without them.

No monetary discount

Bonus points vouchers don't reduce the order total. The customer pays full price but receives points as a reward.

Example:

  • Order total: $50.00
  • Voucher: BONUS500
  • Customer pays: $50.00
  • Points received: 500

Best practices

  • Match point value to engagement: 500 points should feel valuable
  • Consider point economics: Ensure bonus doesn't exceed purchase value
  • Pair with purchases: "Earn 500 bonus points on orders over $30"
  • Promote your loyalty card first: Points only land for members who hold a card in the club, so pair this voucher with card signup

Choosing the right type

Goal Recommended Type
Increase average order Percentage with minimum
Simple, clear value Fixed amount
Product promotion/sampling Free product
Build loyalty engagement Bonus points
Large order incentive Percentage (no cap)
Budget-controlled campaign Fixed amount or capped percentage
Clear inventory Percentage off
Birthday/milestone Free product

Combining strategies

Different voucher types can work together in a campaign:

Acquisition: Fixed amount welcome discount
Engagement: Bonus points for second purchase
Retention: Percentage discount for loyal customers
Promotion: Free product to try something new

Create multiple vouchers with different types to address various customer motivations.

Impact on analytics

All discount types track:

  • Total discount given
  • Redemption count
  • Average discount per redemption
  • Redemption by time period

This helps you compare which type performs best for your business.

Next steps

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