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An online coupon refers to a discount code or number that can be redeemed on a website. Like traditional coupons, online coupons are used to attract new customers and increase the loyalty of new customers. However, online coupons offer a retailer much clearer analytics on which promotions are more successful, and can even help track whether new customers become loyal customers.
Online coupons are usually only valid for the online component of a store and cannot be redeemed at a physical store location. This is primarily because the overhead costs of products from an online store and a physical store are very different, so the same discount cannot be fairly applied. Traditional coupons can, however, be found online – usually at a retailer's website – and printed off for in-store redemption. Online coupons may be sent by email or social media to loyal customers, or they may be posted as ad campaigns or to online coupon aggregation sites.