In the context of promo campaigns, redemption is the act of exchanging an incentive (promo code, gift card, referral code, loyalty points) for a discount or a product. In Voucherify, redemption is an action triggered when a customer uses an incentive at the checkout. The redemption may be successful or failed and includes the validation step. It can be performed via Dashboard (manually) or triggered via API (recommended). It is also possible to roll back redemptions.
The most common types of redemption limits
Voucherify offers validation rules and other campaign limits (redemption count, activity period) that allow for redemption only in predefined circumstances. Here are some examples:
- The promotion activity period is limited.
- One redemption per customer.
- Promotion is only valid for a predefined customer segment or location.
- Promotion cannot be combined with other offers.
- Promotion can only be applied to orders worth more than X.
- Promotion cannot be applied to product X.
Redemption limits are a crucial part of running promo campaigns which help not only to personalize and target incentives but also secure the budget and limit fraud. To learn what redemption limits are available in Voucherify, visit our Help Center.
What is a redemption rate?
The redemption rate is a key indicator of the success of promotions and marketing campaigns. It represents the proportion of customers who actually use a coupon or promotional offer. A high redemption rate signifies that the promotion effectively stimulated customer engagement and purchases, while a low rate indicates that the promotion failed to do so.
Monitoring the redemption rate is vital for businesses, as it provides actionable insights into the effectiveness of their promotions. By tracking this metric, businesses can decide which promotions to continue, adjust, or discontinue. Additionally, by analyzing the redemption rate, businesses can gauge the impact of their marketing campaigns and determine which ones resonate with customers.
What is post-redemption churn?
Post-redemption churn is the proportion of customers who redeem a promotional offer but then go on to cancel their subscription or discontinue the service. This metric provides insight into customer loyalty and helps businesses evaluate opportunities for enhancing customer retention. By monitoring post-redemption churn, businesses can identify trends and patterns that may contribute to customer attrition and implement strategies to reduce it.
How to avoid post-redemption churn?
Here are some ways to avoid post-redemption churn:
- Monitor customer feedback – regularly listen to customer feedback to understand their needs and preferences.
- Increase personalization – personalize your offerings and promotions based on individual customer preferences and behaviors to increase customer engagement and satisfaction.
- Foster a sense of community – create a sense of community among your customers through events, forums, and other engagement opportunities to increase brand loyalty.
- Continuously improve products and services – regularly assess and improve your products and services based on customer feedback and changing market trends to maintain customer relevance and satisfaction.
By implementing these strategies, you can foster customer loyalty, reduce post-redemption churn, and enhance overall customer retention.