# Coupon Code

> A coupon code is a unique string of characters that a customer can enter during checkout to receive a specific discount or offer.

- **URL**: https://dodopayments.com/glossary/coupon-code

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## What is Coupon Code?

A coupon code is a unique string of characters that a customer can enter during checkout to receive a specific discount or offer. It is a versatile marketing tool used to track the effectiveness of different campaigns and promotions.

### Why It Matters

- It drives new customer acquisition by offering a temporary incentive to sign up.

- It allows for precise tracking of which marketing channels are generating the most conversions.

- It provides a way to offer targeted discounts to specific groups, such as students or first-time buyers.

- It can be used to reward loyal customers or win back those who have churned.

## Learn More

- [Pricing psychology tactics that improve conversion](https://dodopayments.com/blogs/pricing-psychology)
- [How to use value-based pricing in SaaS](https://dodopayments.com/blogs/value-based-pricing-saas)
- [Top pricing mistakes founders should avoid](https://dodopayments.com/blogs/top-pricing-mistakes-founders-make)