microcoupon

A microcoupon is a digital coupon that offers a very small monetary value, typically used in online commerce and mobile applications to encourage trial, engagement, and repeat purchases. Unlike traditional paper coupons, microcoupons are usually issued and redeemed electronically and may be included as part of loyalty programs, advertising campaigns, or in-app promotions.

Delivery and redemption methods vary but commonly include distribution through email, push notifications, in-app messages, or at checkout. Redemption is often accomplished via a code, barcode, or automatic application to a user account. Microcoupons frequently carry expiration dates and may be single-use, time-limited, or stackable within set terms.

Types of microcoupons include fixed-amount discounts, percentage-based discounts, trial offers that provide a free or heavily discounted item to encourage trial, and bonus credits for future purchases. They can be targeted based on user behavior, location, or timing and are often integrated with loyalty programs or ad campaigns.

The economic rationale for microcoupons centers on lowering purchase friction, boosting initial and repeat purchases, and collecting data on consumer preferences. They are typically evaluated on metrics such as redemption rate, incremental revenue, and impact on average order value or customer lifetime value.

Limitations and considerations include potential fraud risk, market saturation, and possible perception of brand devaluation if overused. Privacy concerns and the complexity of terms can also affect effectiveness and trust.

See also: coupon, digital coupon, micropayment, loyalty program, promotional campaign.