---
title: How Discount Incentives Work
description: Boost recovery rates by adding unique Shopify discounts to reminder emails. Set dollar or percent off amounts to create single-use codes for customers.
---

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# How Discount Incentives Work

## Adding a discount to a reminder step is an effective way to recover lost sales by providing a final incentive for customers to complete their purchase. You can set this up by defining a dollar or percentage amount within the step editor and including the specific discount merge fields in your email body. Once a reminder is sent, the system automatically generates a unique, single-use Shopify discount code tied to that specific customer and quote, ensuring it cannot be stacked with other offers. As a best practice, reserve these discounts for the final step of a sequence to allow customers multiple opportunities to buy at full price before receiving an incentive.

### Overview

You can attach a discount offer to any reminder step. This is a powerful way to recover sales that would otherwise be lost — by offering a small incentive on a later reminder, you give the customer a reason to come back and complete their purchase.

### Setting Up a Discount

1. Open the step editor by clicking **Show steps** on the Saved or Finalized track.
2. On the step where you want to offer a discount, enter an amount in the **Discount** field.
3. Choose the **Discount type**: dollar amount (**$**) or percentage (**%**).
4. In your email body, include the merge fields: 
     - discount\_code
     - discount\_description
     - discount\_expiry
    so the customer can see and use the code.
5. Click **Save**.

### How the Discount Code Is Created

When a reminder with a discount is sent, the system automatically creates a unique Shopify discount code for that customer and quote. You do not need to create the discount code yourself. 

All discount codes created by marketing automation are in the format: **CFG-XXXX** where 'XXXX' is the reference code for the quote.

**Discount Code Rules**

- **Single-use:** Each code can only be used once.
- **Customer-specific:** The code is tied to the customer who received it.
- **Cannot be combined:** The code cannot be stacked with other discount codes at checkout.
- **Expiration:** For finalized quotes, the discount expires when the quote expires. For saved quotes, the discount expires based on the track timing (at least 7 days).

### Best Practice

Most merchants offer a discount only on the last step of a reminder sequence — for example, Step 4 of a 4-step saved quote track. This gives the customer multiple chances to buy at full price before the incentive is offered. The default best-practice templates follow this approach: no discount on Steps 1-3, and a 5% discount on Step 4.

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