What is redemption: The definition
Coupons play an important role in the sales strategies of many different businesses. Often, businesses will run promotional campaigns that reward customers with coupons, vouchers, or codes. Customers can then use them when they shop.
Typically these coupons and vouchers offer customers a percentage discount on a product, or their entire purchase. Sometimes they have a monetary value instead, or they can be exchanged directly for products. These are all examples of redemption.
Being the go-to Promotion Engine for enterprises all around the world, at Talon.One, we define redemption as the following:
In the world of retail and promotions, redemption is the act of exchanging a coupon, token, or some other form of promotion, for a product or discount in order to save money or benefit in other terms.
Common redemption examples and terms
Many promotions come with lengthy lists of redemption terms that restrict the circumstances under which promotions can be redeemed.
Redemption examples & terms include:
Promotion only valid within a certain date range
One redemption per household
Promotion only valid for residents of a certain country
Customer must provide valid email address
Promotion cannot be redeemed in conjunction with another promotions
Redemption terms serve an important purpose for businesses running promotions. They help maximize the value of promotional campaigns by protecting against overuse. They do this by giving businesses better control over when and where promotions can be used.
While most of these restrictions are built into the backend of promotional campaigns, it’s important to make sure customers are aware of restrictions before they try to redeem their coupons. An unexplained coupon rejection could damage the relationship between you and your customer. To avoid this, it's important to make sure terms are properly communicated beforehand.
A redemption limit restricts the number of times a coupon, code or voucher can be used. Redemption limits help businesses protect themselves from promotion exploitation and coupon fraud. For example, a customer referral code could be set up with a redemption limit of five to ensure that each customer can refer no more than five friends.
Without a promotion limit, customers could theoretically reuse a coupon as many times as they like. Besides referral codes, most coupons are one-time-only, meaning they’re only available for the customer to use once. Many businesses keep track of various pieces of data around coupon redemption to help them adjust their campaigns for better results.
Wiener Strasse 10
41 Church Street
B3 2RT Birmingham
One Boston Place, Suite 2600
02108 Boston, MA
1 Scotts Road, #21-10 Shaw Centre