Most companies use 3 types of promotions on rotation.
Percentage discount. Buy-one-get-one. Free shipping.
And they wonder why customers get used to it and stop responding.
The problem isn't the promotion itself. It's that it's used without any logic, without a precise objective, and often without measuring the results.
In this post I break down the 16 most effective promotional mechanics — including the lesser-known variants that can truly make the difference — plus 3 concepts nobody explains to you but that directly affect the profitability of your campaigns.
Before you start: 4 things that determine the success of any promotion
1. Know your target. There's no such thing as a universal promotion. What converts for a B2C customer doesn't work for a B2B buyer. Collect data, analyze purchasing behavior, and build the mechanic around who's in front of you.
2. Offer real value, not just a discount. Cutting the price is the shortest route and the one with the thinnest margin. Before touching the price, ask yourself whether you can offer something extra that costs less than its perceived value.
3. Choose the right channel. An invisible promotion doesn't convert. Email, social, push notifications, physical flyers: every target has its own channels. Getting the medium wrong wipes out all the work you put into the message.
4. Measure everything. Every promotion is a test. Redemption rate, increase in average order value, new customers acquired, repurchase rate. Without data, you're shooting in the dark.
The 16 promotional mechanics
I've grouped them by logic, not by popularity.
Levers on purchase volume
1. Percentage discount on the total
The classic. It works to attract new customers and lower the barrier to entry. Risk: it trains the customer to wait for the promos.
2. Discount on specific products
More surgical. Useful when you want to push a particular SKU — a new launch, a product with excess stock, a category you want to make known.
3. Volume-based tiered discounts
10% on 2 units, 15% on 3, 20% on 4. It raises the average order value and pushes the customer to try SKUs they otherwise wouldn't have considered. Underused in B2B, where it works very well.
4. BOGO — Buy One Get One
Buy one, get one. Effective for products with a margin big enough to sustain it. It creates a sense of immediate value and can generate trial of new products.
5. Buy 3 Pay 2 and variants (4+1)
Buy 3, pay for 2. Or: buy 5, the cheapest one is free. Mechanics that are simple to communicate and immediate to understand. The 4+1 is less saturated than the buy-3-pay-2 and tends to surprise more.
6. Bundle / Combined sale
Two or more products sold together at a price lower than their sum. It increases perceived value and reduces resistance to buying complementary products. Watch out: in some markets it's regulated.
Levers on loyalty and return
7. Coupons for future purchases
Distributed after a first purchase, it drives the customer to come back. It works particularly well in e-commerce, where the second purchase is the real indicator of the quality of the acquired customer.
8. Loyalty programs and collections
Points, tiers, exclusive rewards. They build long-term loyalty and — often overlooked — generate valuable data on purchasing behavior. They usually fall under Prize Operations.
9. Subscription models
A fixed discount in exchange for a recurring commitment. Amazon uses it, Spotify uses it, and more and more e-commerce businesses are adopting it. Predictable for the company, convenient for the customer.
10. Gift cards
They're not coupons in the strict sense, but they expand the customer base through direct word of mouth. Whoever gives a gift card brings in a new customer without you spending anything on acquisition.
Levers on urgency and behavior
11. Flash or limited-time offers
Valid for just a few hours or days. They create real urgency, not simulated. Used with judgment, they train customers to pay attention to your communications. Overused, they lose effectiveness.
12. Personalized or behavioral coupons
The abandoned cart is the best-known example, but the logic applies everywhere: products similar to those already purchased, categories not yet explored, dormant customers to reactivate. They require a minimum of automation but have conversion rates far higher than generic coupons.
13. Coupons via influencers
The company provides an exclusive discount code to creators whose audience matches its own customers. The advantage isn't just the discount: it's the trust the creator has built within their community. To be treated as a channel, not an isolated tactic.
Levers on perceived value
14. Free shipping
Standard in e-commerce, still very effective. The effect is amplified when combined with a minimum order threshold, which raises the average order value. Free returns lower distrust on the first purchase — essential for categories like clothing and footwear.
15. Free gift
A sample, a gadget, a complementary product included with the order. It costs less than an equivalent discount, generates the WOW effect when the package is opened, and can introduce the customer to SKUs they otherwise wouldn't have bought.
16. Rebate (deferred refund)
A partial or full refund granted after the purchase, often upon reaching a target. Widely used in B2B as an annual incentive for distributors. It requires precise tracking and clear communication of the conditions.
The 3 variables nobody explains — and that affect your margins
Breakage
It's the percentage of issued coupons that are never redeemed. One coupon out of ten used means nine didn't generate the expected cost — which has a positive impact on margins. Understanding your breakage rate helps you size campaigns more precisely.
The main causes: the customer doesn't know the promotion exists, doesn't find it worthwhile, or doesn't trust it. All problems solvable with communication, segmentation, and brand credibility.
Slippage
Customers who don't request the refund or who don't submit the correct documentation. Some companies see it as a short-term advantage. In reality it's a sign of friction in the redemption process — and over the long term it erodes trust.
Real profitability
A promotion isn't measured only by the number of units sold. It's measured by the increase in overall margin, the acquisition cost of the new customer, and the repurchase rate. Without this data, you only know how much you spent, not how much you earned.
How to structure sales promotions systematically
Moving from "let's run a discount this month" to a structured promotional strategy requires method: planning by objective, differentiated mechanics by segment, tracking of results.
That's exactly what Sale-Stack's AI sales platform lets you do: build measurable promotional pipelines, segment offers by customer type, and analyze in real time what works and what doesn't. Without relying on intuition.
Gianluca Testa
Founder Salestack
Host of the Business Garage Podcast