What is a coupon?

A coupon acts like a digital key at checkout. It is a code-based mechanism that unlocks a specific deal or discount. Unlike automatic promotions, a coupon requires a customer to actively present or enter a code—like "SAVE20"—to receive the benefit. In the Capillary ecosystem, coupons are managed within the Offer Management System (CMS), which serves as a central repository for creating and tracking these incentives across internal and external services.

What it does?

A coupon manages the lifecycle of a discount through four specific controls:

1. Target the benefit. It defines the reward, such as a Fixed Amount ($20 off) or a Percentage (10% off), restricted to specific products or organizational units (OUs).
2. Control distribution. It decides who gets a code (via targeted CSV lists or general campaigns). Once a code is utilized by one service, it becomes unavailable to others to prevent double-dipping.
3. Manage urgency. It sets a strict shelf life. A code can expire on a fixed date, a set number of days after issuance, or be linked directly to a specific marketing campaign's validity.
4. Track success. Through a centralized Dashboard, it monitors creation dates, service usage (Loyalty, Outbound, etc.), and real-time redemption performance.

How it works?

Brand setup

A marketing manager configures the "Incentive" logic in the CMS.

• The Container: Create an "Offer" and set it as the master template for the discount logic.
• The Code: Choose between Auto-generation (unique strings), a Common Code (e.g., "SALE20"), or Manual Upload for third-party/vendor codes.
• The Guardrails: Set issuance limits per customer, total campaign caps, and redemption restrictions based on transaction amount, date, or time.
• Offer Activation: Ensure that the offer is set to active before any transactions occur. Only offers that are active at the time of the transaction are eligible for coupon issuance. Transactions that happen before the offer's activation timestamp are not eligible, even if the offer is activated later or other eligibility criteria are met.

Customer experience

The customer receives a code via SMS or email and shops as usual. At the checkout or payment screen, they enter the code. The system validates that the offer is active at the time of the transaction, checks the code's status, and confirms that the customer meets the redemption rules. If all conditions are met, including offer activation, the system applies the discount instantly.

If the transaction occurs before the offer becomes active, the coupon cannot be issued or redeemed, even if the offer is activated later or the customer meets other eligibility criteria.

How it differs from other promotions

Real-world examples

The Welcome Gift

A new customer signs up and receives a unique code for 10% off their first order (limit 1 per customer).

The Influencer Code

A brand gives an influencer the code "Glow15." It is a common code shareable with everyone, but capped at the first 1,000 redemptions.

The Retention Tactic

A customer hasn't shopped in 30 days; the system sends a $20 off coupon that expires exactly 7 days after they receive the SMS, triggered by an outbound campaign.

The Threshold Reward

A "Fixed Amount" coupon that only activates when a customer spends above $100, valid only during weekend store hours.

Benefits of Coupons