Dynamic Discount Codes

Overview

Dynamic Discount Codes allow customers to choose how many points they want to convert into a discount code. Unlike fixed-value rewards, dynamic codes let customers control the discount amount within the limits you define.

Key Benefit: Customers gain full flexibility while merchants maintain control using points-to-currency ratios, minimum/maximum redemption limits, and eligibility settings.

How It Works

Customer Experience:

• Customer navigates to rewards section
• Customer sees “Dynamic Discount Code” option (if eligible)
• Customer enters the number of points to redeem
• System calculates discount value based on your ratio
• Customer confirms redemption
• Unique discount code is generated
• Customer applies code at checkout

Configurations

Online Store

Full configuration for your online storefront, including:

• Points-to-currency ratio
• Minimum and maximum points
• Purchase type options (one-time, subscriptions, both)
• Customer eligibility
• Discount combinations

Point of Sale (POS)

Simplified configuration for in-store redemptions:

• Points-to-currency ratio
• Minimum and maximum points
• Customer eligibility

Excludes:

• Purchase type options
• Discount combinations

Benefits

For Customers

• Flexibility to choose redemption amount
• Personalized discount value
• Transparency before confirming redemption
• Control—redeem small or save for larger discounts

For Merchants

• Set limits through ratios and caps
• Protect margins with maximum discount definitions
• Target specific customer segments
• Offer custom ratios per tier

Points-to-Currency Ratio

Define how many points equal $1 in discount value.

Common Ratios:

Calculation Formula:

Discount Value = Points Redeemed ÷ Ratio

Alignment with Earning Rate: If customers earn 10 points per $1 spent, using a 100:1 ratio means they must spend $10 to earn a $1 discount (10% value).

Please check more: https://key-stone.app/docs/loyalties/rewards/dynamic-discount-codes/overview.html