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2022-10-19 5:00 pm

Automatic Discount Definition


An automatic discount (also known as a cart promotion or automatic discount) is a promotion that does not require a promo code to be applied at the checkout to work. Instead, it applies the discount automatically once promotion conditions are met.

Automatic discount tend to be easier for customers to use as they do not need to find, copy and paste a unique discount code, which can improve the campaign success metrics. On the other hand, running publicly available automatic discounts can quickly burn your budget and they are notoriously harder to track as no unique identifier is attached to the completed orders.

Example of a tiered automatic discount

What are the benefits of running automatic discounts?

  • Increase AOV – cart promotions are often split into tiered campaigns that grant a bigger discount to high-value orders.
  • Sell outdated stock faster – automatic discount work great with slow-moving items, old collections or products you want to discontinue.
  • Acquire new customers – cart promotions are a good strategy for any acquisition or conversion-focused strategy as they do not need to operate on customer data, unlike unique codes which are usually first delivered to customers via different channels.

How to protect automatic discount from fraud?

Cart promotions are usually open-for-all or carry basic usage limits, such as restrictions on the number of redemptions. To secure your budget, you may consider adding the following limits to your campaigns:

  • Number of redemption per customer (optionally also per day).
  • Total discount per customer.
  • Activity period.
  • Excluded products.
  • Order value and size.

For more information on automatic discount, check our Complete Guide.

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