How do I prevent sign-up discount code misuse?

Customers sometimes cancel and then resubscribe to take advantage of sign-up discounts.

This guide outlines strategies to help you prevent this behavior and encourage long-term retention.

Before you start

This article focuses on managing discount codes to prevent cancellations and reorders.

Method 1 - Set discount restrictions

Setting a sign-up discount code restriction is the easiest way to ensure a discount code is used only once per customer and reduce cancellations related to misuse. You can edit your discount code to add one of the following:

• Limit to one subscription per customer: Restricts the discount to one use per customer email.
• Limit to first-time subscribers only: Allows the discount only for new customers.

Method 2 - Dynamic pricing

You can use Dynamic pricing, to offer a discounted price during checkout that applies to the set number of orders you want. Although this method does not directly prevent discount misuse, it can reduce cancellation.

For example, you can apply a 20% discount for the first 3 orders and then 15% after. 

Method 3 - Milestones

If you’re using Recharge Rewards, you can use the streak count feature to offer increasing discounts as customers reach milestones. Although this method does not directly prevent discount misuse, this approach allows you to provide rewards and encourage customers with even greater discounts and rewards for their long-term loyalty.