Gift Certificates vs. Coupons

I recently gave gift certificates to customers to sign up early for senior sessions. I am wondering if it would be better to give them coupons instead. Is there a difference in how they are applied by zenfolio that I would make more money? Which one is more profitable?

Comments

  • ChessZenChessZen Administrator Posts: 488
    If all things are equal and a coupon or gift certificate is given to a client so that they will receive a discount that partially pays for an order, there is no difference in the way they are applied by Zenfolio that would affect how you would make money. In both cases, you would still receive the same amount of profit on the same sale. In most cases, neither one option is more profitable than the other.

    The main differences are in the way the coupons and the gift certificates are used. Coupons are used during checkout to receive a discount on the order. Gift certificate are considered as a payment method and is used to pay for some or all of the order.

    With coupons, the client is able to receive a discount on their order as per the parameters set in the coupon. Also it is not possible to save any part of the discount if the client does not use the full discount on an order. So for example, if they receive a one time use coupon that provides a $50 discount and they use it on an order that is only $30, they cannot then use the leftover $20 to receive a discount on another order.

    Giving a client a gift certificates is just like giving the client cash that they can use to purchase products from your site. If they use it to pay for an order that does not use up the entire value of the gift certificate, the system will remember that there is some amount left over in the gift certificate. The system will then allow them to use the gift certificate to pay for other orders until the value of the gift certificate is exhausted.

    With coupons, you can set a minimum amount so that they are required to purchase a minimum amount of products before they can apply the coupon to their order. You can also set a expiration date for the coupon. You can limit the product type (vendor, digital, Self-Fulfilled) for which the coupon can be applied. Lastly, you can set the coupon so that it can only be applied to purchases from a particular group or gallery.
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