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Understanding Discount Types.

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

Dec 19, 2025

Vouchers support five discount types, each suited for different marketing goals. Choose the type that best matches your campaign objective.

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. The cap value is entered in cents (e.g., 5000 = 50.00 cap).

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. The discount value is entered in cents (e.g., 1000 = 10.00 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 instantly 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.

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 exactly what the customer receives. Be specific:

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

Staff need to know what to give away.

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

Free Shipping

Remove shipping charges from the order.

How It Works

Shipping cost is waived when the voucher is applied.

Example:

  • Voucher: FREESHIP
  • Normal shipping: $8.95
  • Customer applies voucher → $0.00 shipping

When to Use

  • E-commerce promotions
  • Delivery-based businesses
  • Reducing cart abandonment
  • Competing with free-shipping competitors

Best Practices

  • Set minimum order: "Free shipping on orders over $50"
  • Limit to specific regions: If shipping costs vary significantly
  • Time-limited: "Free shipping this weekend only"
  • Track impact: Monitor if it increases conversion

⚠️ Note: Free shipping requires integration with your checkout system to apply correctly. Work with your development team if you need this integration.


Bonus Points

Award loyalty points instead of monetary discounts.

How It Works

Customer receives points credited to their loyalty card.

Example:

  • Voucher: BONUS500
  • Points awarded: 500
  • Linked card: Main Loyalty Card
  • Customer redeems → 500 points added to balance

When to Use

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

Configuration

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

Credit Points To (required for this type) Select which loyalty card receives the points. Only cards in the same club appear.

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 the program: Use bonus points to introduce loyalty cards

Points Integration

Bonus points are automatically credited to the linked loyalty card when the voucher is redeemed. The points appear in the customer's balance immediately.

If the customer doesn't have the linked card yet, they'll be prompted to add it first.


Choosing the Right Type

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

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.

Next Steps