> ## Documentation Index
> Fetch the complete documentation index at: https://docs.voucherify.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Discount campaign overview

> Understand the core concepts and workflow of building discount programs in Voucherify

Discount campaigns allow customers to receive financial benefits, such as percentage discounts, fixed amounts off, or free shipping.

Voucherify manages these incentives through two primary mechanisms: **Discount coupons**, which require a code, and **Cart promotions**, which apply automatically based on cart contents.

Learn how discount campaigns work—from generating unique bulk codes to setting up automatic, tier-based promotions.

## Key discount concepts

The following concepts are key for understanding the discount engine.

<AccordionGroup>
  <Accordion title="Discount coupon">
    A code that a customer must enter to receive a benefit. Coupons are best used when you want to track individual customer actions or limit the discount to a specific audience.
  </Accordion>

  <Accordion title="Cart promotion">
    A discount applied automatically when a customer's cart meets specific criteria. No code is required from the customer.
  </Accordion>

  <Accordion title="Generic code">
    A single, standalone code (for example, `SUMMER20`) shared by multiple customers. Everyone uses the same phrase to redeem the discount.
  </Accordion>

  <Accordion title="Bulk codes">
    A set of unique, random codes (for example, `s9-RaNd0m`) generated in a batch. Each code is unique to a specific customer or interaction, allowing for precise tracking.
  </Accordion>

  <Accordion title="Validation rules">
    The conditions that must be met for a discount to be valid. These can include order volume, customer segments, specific products, or time frames.
  </Accordion>

  <Accordion title="Promotion tiers">
    Levels of benefits within a single cart promotion campaign. For example, you can set up a rule where spending \$50 grants 5% off, while spending \$100 grants 10% off.
  </Accordion>

  <Accordion title="Redemption">
    The successful application of a discount to an order. This process records the usage in the dashboard and updates the campaign budget or code usage limits.
  </Accordion>

  <Accordion title="Distribution">
    The mechanism for delivering coupon codes to end customers via email, SMS, or web widgets. This is required for coupon campaigns but skipped for cart promotions.
  </Accordion>

  <Accordion title="Publication">
    Assigning a discount coupon to a given customer.
  </Accordion>
</AccordionGroup>

## Discount workflow

Voucherify supports every step of the discount campaign lifecycle.

<Steps>
  <Step title="Configuration">
    Build your campaign mechanics, define **Validation rules**, and set the discount value in the **Dashboard**.
  </Step>

  <Step title="Distribution (coupons only)">
    Assign (publish) coupon codes to customers. You can send them directly or expose them via your frontend. **Cart promotions** are active immediately and don't require distribution.
  </Step>

  <Step title="Validation and redemption">
    When a customer enters a code or updates their cart, Voucherify validates the request against your rules. If valid, the discount is applied (redeemed) to the order total. Depending on your settings, a coupon will be used up here.
  </Step>

  <Step title="Analysis">
    Track the performance of your discount campaigns using real-time reports to understand which codes or rules drive the most sales.
  </Step>
</Steps>