Dynamic Discount Codes

Overview

Dynamic Discount Codes provide customers with flexibility to choose how many points they want to convert into a discount code. Unlike fixed-value coupon rewards where you set the discount amount, dynamic discount codes let customers decide the discount value within your defined parameters.

Key Benefit: Maximum customer flexibility while you maintain control through points-to-currency ratios, minimum/maximum limits, and eligibility rules.

How It Works

Customer Experience:

1. Customer navigates to rewards section
2. Customer sees "Dynamic Discount Code" option (if eligible)
3. Customer enters the number of points they want to redeem
4. System shows the discount value based on your points-to-currency ratio
5. Customer confirms redemption
6. Unique discount code is generated
7. Customer uses code at checkout

Example:

Configuration:
Points-to-currency ratio: 100 points = $1
Minimum points: 500 points
Maximum points: 5,000 points

Customer Journey:
1. Customer has 3,000 points
2. Customer enters 2,500 points to redeem
3. System calculates: 2,500 ÷ 100 = $25 discount
4. Customer confirms: 2,500 points deducted
5. Discount code generated: DYNAMIC-ABC123 ($25 off)
6. Customer applies code at checkout

Configurations

Dynamic Discount Codes can be configured separately for different sales channels:

Online Store

Full-featured configuration for your online storefront.

Includes:

• Points-to-currency ratio
• Minimum and maximum points
• Purchase type options (one-time, subscriptions, both)
• Customer eligibility
• Discount combinations

View Online Configuration →

Point of Sale (POS)

Simplified configuration for in-store redemptions.

Includes:

• Points-to-currency ratio
• Minimum and maximum points
• Customer eligibility

Excludes:

• Purchase type options
• Discount combinations

View POS Configuration →

Benefits

For Customers

• Flexibility: Choose exactly how many points to redeem
• Personalization: Create discounts that match their needs
• Transparency: See exact discount value before confirming
• Control: Redeem small amounts frequently or save for larger discounts

For Merchants

• Control: Set boundaries through ratios and limits
• Profitability: Cap maximum discounts to protect margins
• Targeting: Restrict access to specific customer segments
• Differentiation: Offer different ratios for different tiers

Points-to-Currency Ratio

Define how many points equal one dollar of discount value.

Common Ratios:

Ratio	Points Needed	Discount Value
100:1	100 points	$1
50:1	50 points	$1
200:1	200 points	$1

Calculation Formula:

Discount Value = Points Redeemed ÷ Ratio

Examples:

Ratio: 100 points = $1

Customer redeems 500 points → $5 discount
Customer redeems 2,000 points → $20 discount
Customer redeems 5,000 points → $50 discount

Alignment with Earning Rate

Consider aligning your ratio with your earning rate for consistency. If customers earn 10 points per $1 spent, using a 100:1 ratio means they need to spend $10 to earn enough for a $1 discount (10% value).

Related Features

• Order Discount Rewards - Fixed-value order discounts
• Product Discount Rewards - Fixed-value product discounts
• Free Shipping Rewards - Free shipping codes
• Gift Card Rewards - Gift card generation
• Customer Tiers - Segment-based eligibility
• Transactions - View reward claims and usage

Summary

Dynamic Discount Codes provide the ultimate flexibility for customers to choose their own discount value while you maintain control through ratios, limits, and eligibility rules. This feature bridges the gap between fixed-value rewards and complete freedom, creating a personalized redemption experience that drives engagement while protecting your margins.

Choose the configuration that matches your needs:

• Online - Full-featured for your online store
• POS - Simplified for in-store redemptions