How to use the promo code redemption rate calculator
How many codes you handed out matters far less than how many were actually used. Enter codes issued and codes redeemed and this calculator returns the redemption rate (redeemed รท issued) along with the number left unused. Add the average discount per redeemed code for the total discount cost, and the revenue from code-using orders for revenue after discount and revenue per dollar of discount.
The denominator is codes issued. If you divide by codes opened or codes viewed instead, the rate comes out much higher, so never compare the two figures side by side. When codes go out through several channels, split the calculation by channel.
Discount cost accrues only on redeemed codes, so a low redemption rate is not the same thing as a loss โ costs actually rise as redemption climbs. Revenue per dollar of discount below 1.00x means you are discounting more than the orders bring in. What counts as a normal redemption rate depends on the channel, the discount depth and the expiry window, so no benchmark is offered here.
Frequently asked questions
Not necessarily. Codes distributed in bulk naturally redeem at a low rate, and cost only accrues on the ones used. The rate becomes meaningful when you compare it with an earlier campaign distributed the same way.
That means total discount cost is larger than the revenue you entered. Check that the revenue field holds only orders where a code was applied, and that the per-code discount is not overstated.