How to prevent coupon fraud and control your redemptions - secure your ROI
Learn more about Voucherify’s features which restrict coupon usage and combat coupon fraud and misuses.
How to prevent coupon fraud and control your redemptions?
Limits of coupon usage should be adjusted to the campaign goals and be flexible enough to face the dynamics of unexpected changes. With this article, we will show you how to restrict coupon usage and make redemptions a reliable measure of a campaign success.
With Voucherify you can define coupon usage with many properties:
1. REDEMPTION LIMITS
- Total number of coupon redemptions.
- Number of redemptions count per customer, per day and per user.
- Number of redemptions count per customer among the whole campaign.
- Total number of redemptions among the whole campaign.
2. UPPER VALUE OF DISCOUNT
3. CART-LEVEL LIMITS
- Minimum/ maximum value of the cart.
- Minimum/ maximum price of any/each item in the cart.
- Required order item list.
- Excluding specific products.
4. BUDGET-BASED RULES
- Total value of orders among the whole campaign.
- Total value of discount among the whole campaign.
5. CUSTOMER SEGMENTS.
6. LIMITS FOR AFFILIATES.
7. AUTO-EXTENDING WITH AUTO-UPDATE MODE.
8. EMAIL VERIFICATION
THE TOTAL NUMBER OF A CODE REDEMPTIONS
Whether you run a fixed-code campaign (a public code to attract new customers by sharing through social media and other channels) or a campaign of unique coupons (a bulk of unique, one-off codes) you can set the total number of code redemptions according on your goals:
- Coupon can be redeemed only once.
- Coupon can be redeemable unlimited number of times.
- Coupon can be used a predetermined number of times—Voucherify enables you to set any custom value as a redemption number.
THE NUMBER OF REDEMPTIONS COUNT PER CUSTOMER
Validation rules allow marketers to limit code redemptions count per single customer. The most popular marketing strategy limits voucher usage to the one per client. This practice is common especially in companies which use public, fixed-code campaigns.
Why only once?
- The once-per-customer rule is useful in campaigns tuned toward acquiring new customers. You can be sure that after a valid order a new client won’t use the code again.
- Other benefits appear while running A/B tests. You're guaranteed that the number of redemptions is limited to the number of attracted customers.
Redemptions count per customer per day
With this property you can limit a daily coupon usage, these kind of restrictions are commonly used by McDonald’s to restrict redemptions of their coupons (e.g., one per customer per week/one per customer per visit).
Redemptions count per user
This attribute is useful if you collaborate with affiliates or run a team of merchants. You can limit the number of redemptions that each of you team members can invoke within the campaign.
The number of redemptions per customer among the whole campaign
You can choose to restrict the number of redemptions per customer among the whole campaign. This property can be combined with the once-per-customer rule or any other custom redemption limit.
Upper discount value
Upper discount value is a maximum value of a discount that customer can get while redeeming their code. For example, let’s assume you run a campaign with 10% off coupons and upper value of a discount equal to $100. Every order worth $1000 or less gets 10% off the price accordingly to the coupon value.
The upper limit relates to all customers who make an order worth more than $1000 (10% from $1001 is more than $100) so they get only $100 discount (less than 10% and equal to the set upper value of the discount).
Cart-level attributes and limits
Voucherify allows you also to build restrictions based on a cart structure. You can set following limits:
- Order items list with/without particular products
- Minimum and maximum order value
- Required price of any/ each item in the cart
- And many more (go here)
Discount applicable to particular items/SKUs
To create advanced cart-level rules you can define separately which items need to be in cart to get the discount and which of these items will be discounted during a redemption. Thanks to this, you can leave some items in regular price without halting a redemption.
If you’d like to exclude some items anyway, you can do with the following rule:
Thanks to these attributes you can discount orders only when a cart value provides beneficial balance between promotion costs and profits. Moreover, with a minimum value spent and product-based rules you can inscribe upselling and cross-selling into your coupon strategy and maximize the buying potential of your customers.
Next two properties were added to the Voucherify rules engine to secure your campaign budget:
- Total value of orders among the whole campaign set to limit the available amount of all orders done with codes from a particular campaign.
- Total value of discount among the whole campaign which defines the overall value of a discount that your customers can get by redeeming codes from a particular campaign.
Limit redemption with customer segments
Customer segments divide your audience thanks to the filters reflecting their buying profile, location, interactions with your brand, and so on. They enable you to target promotions at specific groups. By adding segment-based rule to your campaign you make sure that redemptions will be invoked only by customers from a desired group e.g., by new customers or by customers who signed up for your newsletter.
Besides protecting your budget, you also craft more personalized customer experiences with targeted coupons.
Coupon strategy is based on constant testing and searching. When a campaign requires dynamic changes in its limits or size, Voucherify provides an auto-update mode. Depending on a current campaign performance, it’s automatically extended with the needed number of coupons without causing any disruption to the flow of your incentives.
Let’s assume you’ve created a campaign with 1,000 unique codes which became an unexpected success. With an auto-update mode, Voucherify will automatically extend the pool of coupon codes accordingly to the number of attracted customers. There is no need to create another campaign with the same pattern. No matter the growth scale, campaign data is gathered in one place, and you can easily analyze the success rate of your incentives.
Unfortunately, there are some customers who find creative ways to attempt fraud. Often, these customers register themselves using different email addresses to take advantage of your promotions. Take a look at our tools that protect you and your incentives from fraud attempts.
The double opt-in feature is used to verify the email address of your customers. By sending them a verification email before finishing registration, it is possible to check if the address exists. Verifying customers’ email addresses will help you combat fraud attempts and fake email addresses. For your safety, the double opt-in feature is enabled by default in Voucherify when you are creating your landing page.
Block email aliases
An email alias is a way to create an additional name for an email account. Fraudsters often use aliases to sign up for loyalty or referral programs to use your incentives multiple times. Voucherify automatically blocks email aliases from receiving coupon codes and other promotional messages.
Request unique email addresses
This feature blocks users from taking advantage of your incentives by using the same email address over and over again. Voucherify automatically remembers and stores all the email addresses used in the given Voucherify project and prevents users from creating duplicates. If a user tries to sign up using the same email address again, a customizable error notification will be shown.
Lowercasing email addresses
Some customers may try to sign up several times using mixed case characters, such as: JeNNa@rspective.pl and JENNa@rspective.pl. You can block such fraud attempts by automatically lowercasing email addresses and then verifying their uniqueness.
If you'd like to learn more about email security protocols in Voucherify, go here.
Have everything under control
When coupons are put in numbers, you need to ensure customers will hold on to the limits and won't attempt any fraud or coupon misuse. In the Voucherify dashboard, you’ll find a current redemption status of every voucher. If a code has already been redeemed the available number of times, the app ensures it cannot be used again.
What to remember about combating coupon fraud?
Effective limits on coupon usage are reflected in a more accurate ROI. You can eliminate misuses which misshape campaign metrics and harm your budget. Once your customers stick to the rules, you can be sure that redemptions are entirely represented in campaign revenues. But before they do, you need to set up proper redemption rules based on number of redemptions, cart structure, customer segments or budget constraints.