Acquisition

Dynamic Discounts Protect Businesses From Coupon Abuse6 min read

dynamic-discounts-protect-businesses-from-coupon-abuse

Dynamic Discounts protect businesses from coupon fraud.

Most Shopify merchants have fallen victim to Coupon Fraud at one point or another. Bad apples always seem to rear their ugly heads to take advantage of your generosity when you’re giving away sweet discounts in your coupons.

We created Dynamic Discounts to give merchants a way to reward their customers for taking action while minimizing the merchant’s exposure to the risks of coupon abuse and fraud.

What are Dynamic Discounts?

ShopMessage’s new Dynamic Discounts are autogenerated, unique single-use discount codes that Shopify merchants can share without worrying about fraud or oversharing.

Customers that opt-in to Facebook Messenger conversations with your brand qualify for receiving these discount codes. Merchants have to set up their discount rules only once. Each customer that receives the Dynamic Discount receives a new code having the same discounting rules.

How Do Dynamic Discounts Work?

Dynamic Discounts plug into Shopify’s Price Rules API to create and distribute unique discount codes though Messenger. Your customers will always receive Shopify-compliant discount codes.

At the same time, you’ll gain better insights into the types of discounts that are driving the most value to your customers. You will gain a clearer picture of the growth drivers for your business. Your exposure to risk from potential coupon abuse will decrease dramatically.

Make discount code abuse and oversharing on coupon code sites a thing of the past with Dynamic Discounts!

Generate unique codes for each customer to limit coupon abuse.

What Kinds of Deals Can You Give?

The first great piece of news is that Shopify users will be already familiar with the functionality. It’s a lot of the rules that you’ve already used in Shopify natively.

Just in case you’re not familiar with the bells and whistles, here’s a quick rundown of what deals are waiting for you.

Discounting by Type

There are three main types of discounts that we support.

  1. Fixed Percentage: how about 10% off for signing up for that newsletter?
  2. Fixed Amount: why don’t we hook up customers with $10 on their birthday?
  3. Free Shipping: everybody loves a good freebie!
Choose what type of reward you want to incentivize without worrying about it being abused. You can give a percentage off, some flat dollar amount, or just throw in free shipping.
Choose what type of reward you want to incentivize without worrying about it being abused. You can give a percentage off, some flat dollar amount, or just throw in free shipping.

With all Dynamic Discount types, you get the benefit of knowing that your codes won’t get reshared or your coupons abused.

But that’s not all! Each discount type can have other Shopify restrictions applied depending on your marketing needs.

Discount restrictions are not mutually exclusive and you can combine multiple constraints to create Dynamic Discounts for all types of sales or promotions.

Leverage different discounting strategies and promotions dynamically.
Leverage different discounting strategies and promotions dynamically.

Cart Catalog-Specific Discounting

Do you want to offer discounts for certain products or collections only? You can! Or, if you’re feeling extra generous, just apply the discount to the entire cart! Your customers will love it.

Discounting With Minimums

How about giving discounts with minimum requirements? Let customers spend $100 to get 25% off! Give FREE SHIPPING when a customer orders 3 or more items. Deals like this are easy with Dynamic Discount minimums.

Discounting Based on Scarcity

Scarcity discounts work really well when you want to create a sense of urgency. Drive engagement amongst your customers and followers of your brand with a deal that won’t last forever.

Maybe you want to hook up the first 100 people with an insane BOGO or giveaway—you can!

Or maybe you want to have an ongoing discount that can only be used once per person. You can do that too!

Time-Based Discounting

Seasonal sales and limited-time deals are great ways to incentivize customers to act quickly. The ephemerality of the deal increases the perceived value of what you’re offering.

Set up several in advance to create a truly awesome Cyber Week experience that brings customers back to see the latest you have to offer.

Where Can I Share My Dynamic Discounts?

The second great piece of news is that Dynamic Discounts fit seamlessly into the customer’s journey that is already taking place with your brand.

You already have the tools to spread your discounts. You just have to use them!

Distribution via Growth Plugins

Now you can give each and every person a unique discount code when they've discovered your brand.
Now you can give each and every person a unique discount code when they’ve discovered your brand.

If you’re using ShopMessage’s Growth Plugins to grow your Messenger contact list, you can now offer a unique Dynamic Discount code to everyone who joins your family.

Just like in email signups modules, you can reward new users for signing up for Messenger communications with your brand.

You can display your Dynamic Discount on the completed state of your growth plugin after a visitor has opted in. At the same time, send this same code to your users as part of the welcome message you send confirming that they have opted-in to messages.

People get interrupted, distracted, or just plain forget what they were doing whether we like it or not. Reminding them to come back later is easy when you leave them a discount in their inbox.

Distribution via Messenger Flows

Send your contacts a unique code through Messenger that can be saved for later.
Send your contacts a unique code through Messenger that can be saved for later.

You can also apply dynamic discount codes to the various messaging flows you’re using to drive customer loyalty and drive sales.

Create discounts in your Abandoned Cart flow for customers that can only be used on each specific cart.

Make unique Browse Abandonment and Winback flows to make it less risky for you to lure your customers back. Some customers just need an extra push with an attractive discount.

What’s better than converting your paying customers into loyal fans of your brand? Give them the true VIP treatment with stupendous savings on their next order.

You know what they say about customer loyalty!

Who doesn't like a good discount? Customers who receive discounts are 3x more likely to convert.
Who doesn’t like a good discount? Customers who receive discounts are 3x more likely to convert.

Start Using Dynamic Discounts

The third thing that’s great about Dynamic Discounts is that you can get started with them right now!

For existing Shopify merchants using ShopMessage, we’ve prepared a step-by-step walkthrough with all your questions answered here. Please note that you will need to accept updated Shopify permissions. These permissions will allow ShopMessage to set up Dynamic Discounts in the Discounts section of your Shopify store.

For non-Shopify merchants, let us know! We’re working on it next, but it’s always great to hear from our customers!

Not yet using ShopMessage? Click to learn more!

This article was originally published by our friends at ShopMessage.

About the author

Steve Hutt

Obsessed with ecommerce, entrepreneurship, and Shopify. If you have the desire to learn and implement what's working today for Shopify brands, I'm excited you're here! This industry blog and podcast is my digital brain where my guests and I share cutting-edge marketing strategy, must have Shopify apps, and marketing platforms that will help you grow and scale. To do this, I'm on the Merchant Success Team at Shopify Plus and host of the eCommerce Fastlane Podcast.