Alert when a discount code's redemption rate exceeds what the campaign intended, measured as redemptions per hour rather than as a total. Leaked codes spread through deals communities quickly, and the revenue looks healthy in the dashboard while the margin is negative. Rate is the signal; the total arrives too late to matter.
Why this one is worth an interruption
The reason this is dangerous is that every headline number looks good while it happens. Orders up, revenue up, conversion up. Only margin is down, and margin is the number nobody watches hourly.
Codes leak through predictable routes: a screenshot on social media, an influencer sharing beyond their audience, a deals forum, or a code generic enough to guess. Most of these are preventable at creation with usage limits rather than detectable afterwards.
The threshold
Rate rather than total, with the baseline set from what the campaign expected.
| Condition | Set it to | Why that number |
|---|---|---|
| Primary trigger | redemptions per hour above campaign expectation | Total arrives too late |
| Hard cap | a usage limit set at creation | Prevention beats detection here |
| Stacking flag | used with another discount | Stacked codes are where margin disappears |
| New-customer codes | flag repeat use by one customer | Usually the first sign of sharing |
| High-value flag | code used on an unusually large order | Worth a separate look |
Who should receive it
Whoever can deactivate a code, which needs to be someone reachable outside office hours.
- Whoever created the campaign.
- Whoever can deactivate a code immediately, including at a weekend.
- Whoever watches margin, because that is the number actually moving.
What to do when it fires
- Check whether it is a leak or genuine campaign success before deactivating. Killing a working campaign is its own cost.
- If it has leaked, deactivate rather than editing the code, so existing links fail cleanly.
- Decide explicitly whether to honour orders already placed. Cancelling them generates a support burden that may exceed the margin recovered.
- Set usage limits on the replacement, which is the fix that prevents the repeat.
When not to set this alert
Do not set this if you use only automatic discounts with no codes. There is nothing to leak.
Do not set it without a baseline expectation for the campaign. Without one, any successful promotion looks like a leak and you will kill a working campaign.
Common questions
How do discount codes leak?
Screenshots on social media, deals forums, influencers sharing beyond their audience, and codes generic enough to guess. Most are preventable with usage limits at creation.
Should I alert on total redemptions or the rate?
The rate. A total threshold is reached after the damage, whereas redemptions per hour above what the campaign expected is visible while you can still act.
Should I honour orders placed with a leaked code?
Usually yes for orders already placed. Cancelling generates support load and reputational cost that often exceeds the margin recovered. Deactivate the code and set limits on the replacement.