Discounts & Coupons
Discounts reduce the amount a customer owes. Coupons are reusable discount rules that can be applied to orders, subscriptions, or customer promotions.
Use discounts deliberately. A poorly configured discount can create revenue leakage across future billing cycles.
Discount types
| Type | Use for | Example |
|---|---|---|
| Percentage off | Reducing a proportional amount. | 20% off for the first three months. |
| Fixed amount off | Reducing a specific currency amount. | USD 500 implementation credit. |
| Free trial or zero-dollar period | Delaying collection while service starts. | First month free. |
Duration
| Duration | Behavior |
|---|---|
| Once | Applies to one invoice. |
| Repeating | Applies for a defined number of billing periods. |
| Forever | Applies until removed or subscription ends. |
Redemption controls
Use redemption limits to prevent accidental overuse:
- Maximum total redemptions.
- Eligible products.
- Eligible customers or customer segments.
- Expiration date.
- Minimum order value.
- New-customer-only restrictions.
Invoice behavior
Discounts should be visible on invoices when they affect customer totals. Customers should be able to understand:
- Original price.
- Discount amount.
- Discount duration.
- Final amount due.
Operational checklist
- Discount owner and reason are documented.
- Duration is intentional.
- Expiration date is set for campaigns.
- High-value coupons have redemption limits.
- Test invoice shows the expected discount line.
- Finance understands whether the discount affects revenue reporting.
Troubleshooting
| Symptom | Check |
|---|---|
| Discount did not apply | Customer eligibility, product eligibility, expiration date, and redemption limits. |
| Discount applied for too long | Duration and repeating period count. |
| Invoice total looks wrong | Whether discount applies before or after tax. |
| Customer received old promotion | Coupon active status and expiration date. |