Kibo Commerce Conceptual Guide: Promotions
1. Strategic Overview
Concept Definition
Promotions in Kibo Commerce are a comprehensive set of rule-based tools that apply conditional price adjustments to products and shipping, orchestrated through a hierarchical system of Campaigns, Discounts, and Coupon Sets.Business Context
The Promotions engine is a core marketing and sales capability within the Kibo Commerce unified platform. It is designed to provide business users with granular control over promotion strategies to drive conversions, increase order value and inventory turnover.Value Drivers
- Increased Conversion and Acquisition: Dynamically applying compelling offers at key moments in the customer journey is designed to reduce cart abandonment and attract new customers. By creating targeted discounts, businesses can create urgency and provide the necessary incentive to complete a purchase.
- Higher Average Order Value (AOV): Structuring promotions with order-level thresholds (e.g., “Spend $100, get 10% off”) or “Buy More, Save More” logic incentivizes shoppers to add more items to their cart to meet the criteria for a better deal, directly contributing to a higher AOV.
- Enhanced Margin Control & Inventory Management: The platform allows for precisely targeting discounts to specific products, categories, or even individual product variants. This enables strategic price reductions to clear excess stock and promote high-margin items.
Scope Statement
This guide provides an exhaustive conceptual overview of the Kibo Commerce Promotions engine. It covers the architecture, configuration, and business application of all native discount types, including stackable, variant-specific, and subscription-based promotions. It also details the platform’s extensibility through custom attributes and external discount systems. This document explicitly excludes API implementation guides, focusing instead on the functional capabilities and their strategic business impact.2. Core Concepts Explained
What are Promotions? The Three-Part Architecture
The promotions framework in Kibo Commerce is built on a three-tiered architecture that separates strategic planning from tactical execution and redemption control. This modular design provides both flexibility and power.- Campaigns: At the highest level, a Campaign acts as a strategic container for a marketing initiative. It is defined by a start and end date and serves as an umbrella under which various activities are grouped. A single campaign can orchestrate not only price-based promotions (Discounts) but also corresponding changes to the storefront experience (Site Variations) and how products are sorted in search and category listings (Merchandizing Rules).
- Discounts: The Discount is the tactical rule engine of the promotions system. This is the core object where the specific logic of an offer is defined. A Discount specifies the conditions that a shopper or cart must meet, the products or shipping methods it targets, and the type of price reduction it applies (e.g., percentage off, fixed amount off, free shipping).
- Coupon Sets: This component serves as a distribution and redemption control mechanism. Coupon Sets are collections of single-use or multi-use codes that can be associated with one or more discounts. They enable businesses to create targeted offers for specific audiences, track the redemption of unique codes, and manage redemption limits.
Why does this Architecture matter?
The separation of these components provides significant operational, financial, and customer experience benefits.- Operational Efficiency: This architecture allows for a clear separation of concerns. A marketing team can schedule a “Back to School” Campaign and attach several pre-configured, reusable discounts like “20% off Backpacks” and “Free Shipping over $50” without having to redefine the discount logic each time. This modularity streamlines the management of complex marketing calendars, as a library of tactical discounts can be built and deployed either as standalone, evergreen offers or as part of larger, coordinated, time-sensitive campaigns.
- Financial Precision: The platform’s interaction rules with Price Lists and the granular control over discount stacking provide powerful tools to protect profit margins. By default, discounts do not apply to B2B or segment-specific pricing defined in a Price List, requiring a deliberate action to enable them. This prevents the accidental layering of a public promotion on top of an already negotiated contract price. Similarly, the discount stacking engine allows for controlled combinations of offers and ensuring profitability.
- Superior Customer Experience: The ability to create highly targeted and relevant offers enhances the shopping journey. For example, a business can offer a special discount to a “VIP” customer segment. The system can also automatically add a free gift to the cart when a condition is met, creating a delightful surprise for the shopper instead of requiring them to manually find and add the free item.
When to deploy Promotions?
- Business Triggers: Common triggers for deploying promotions include seasonal campaigns (e.g., holidays), new product launches, efforts to clear end-of-life inventory, customer acquisition goals, or tactical responses to competitor pricing strategies.
- Maturity Requirements: Basic promotions, such as a site-wide percentage-off discount, can be configured and deployed immediately with minimal prerequisites. More advanced strategies require foundational data to be in place. For instance, leveraging Discount Extensibility to target customers based on their loyalty tier requires that customer attributes for loyalty tiers are already defined and populated within the platform.
- Timeline to Value: Simple, standalone discounts can be created, configured, and activated in minutes, providing immediate value. More complex, multi-layered campaigns that involve coordinating discounts with site variations and merchandizing rules may require more planning but deliver a more cohesive and impactful customer experience that can drive higher engagement and sales over the campaign’s duration.
The Discount Application Lifecycle: Conditions, Targets, and Effects
Every promotion within Kibo Commerce is built upon a consistent and logical abstraction model that breaks the offer down into three fundamental components. Understanding this model is key to unlocking the full creative potential of the promotion engine.- Conditions: These are the “if” statements of a promotion. Conditions define the criteria that a shopper’s cart, session, or customer profile must satisfy before a discount becomes eligible for application. The platform offers a wide range of conditions, from simple order-level thresholds (e.g., the pre-discounted order total must exceed $50) to complex product-based rules (e.g., the shopper must purchase at least three items from the “Clothing” category).
- Targets: Once the conditions are met, the “what” of the promotion is defined by its Target Criteria. The target specifies which precise items, categories, or charges the discount will modify. The target can be the same product that fulfilled the condition (as in a “Buy One, Get One” scenario) or an entirely different product or charge (as in a “Buy a laptop, get 50% off a printer” scenario).
- Promotion Application: This defines the “how” of the promotion, the actual calculation applied to the target’s price. The type of application chosen determines what the shopper experiences. For example, on a $50 item, a Percentage type discount of 10% will drop the price to $45, whereas an Amount type discount of $10 will drop it to $40. The platform supports several application types, including Percentage, Amount, Free, Fixed Price, and Auto-Add Free Product.
3. Functional Components & Configuration Deep Dive
Component Architecture
A discount is a complex entity configured through a series of dedicated sections within the Kibo Commerce Admin UI. Each section controls a distinct aspect of the discount’s logic and behavior, allowing for granular control over its application.- General Settings: This section defines the fundamental nature of the discount. Here, users set its internal name and code, its active date range, and its core operational logic: whether it Applies To a Line Item or the entire Order; whether it Affects the Product cost or the Shipping cost; and its calculation Type (e.g., Percentage, Amount, Free).
- Discount Conditions: This is where the purchase requirements that trigger the discount are established. For order-level discounts, this includes setting minimum order values or quantities. For item-level discounts, it involves specifying the products or categories that must be purchased to qualify.
- Target Criteria: Once the conditions are met, this section specifies which products, categories, or shipping methods are eligible to receive the discount. It includes settings for defining the scope of eligible products and excluding specific items or categories from the promotion.
- Attribute Conditions (Extensibility): This advanced section allows for the creation of conditions based on custom data. It leverages attributes attached to customers, B2B accounts, orders, or fulfillment locations to enable highly targeted and personalized promotions.
- Discount Limitations: This component provides essential guardrails to control the discount’s usage and financial impact. It includes settings for requiring coupon codes, setting maximum redemption counts per order or per customer, and defining a maximum monetary value for the discount.
Configuration-Level Deep Dive
The following table provides an exhaustive reference for the key configurable fields within the discount editor. Each attribute represents a specific business decision, and understanding its purpose and impact is important for designing effective and profitable promotions. 1. General Section Fields| Configuration Name | Business Purpose | Impact and Trade-offs | Concrete Example |
|---|---|---|---|
| Enable/Disable Toggle | Controls the immediate operational status of the discount. | Enabled: The discount is active, subject to its Start/End dates. Disabled: The discount is inactive, even if its dates are current. | A merchandiser disables the “SpringSale” discount on its End Date to manually stop it. |
| Name | Provides a human-readable identifier for the discount in the Admin UI. | This name is used for internal organization, reporting, and searching. It is not shopper-facing. | The discount is named “VIP Holiday Sale 2024” for easy reference by the marketing team. |
| Start Date | Defines the exact date and time a promotion becomes active. | Allows for scheduling. If left blank, the discount is “evergreen” and starts as soon as it’s enabled. | A “Black Friday Sale” is set to start on November 28th at 12:01 AM. |
| End Date | Defines the exact date and time a promotion automatically deactivates. | Creates urgency for time-boxed sales. If left blank, the discount will run indefinitely until manually disabled. | A “Flash Sale” is set to end just two hours after its start time. |
| Applies To | Specifies the level of the purchase (the “target”) to which the discount is applied. | Line Item: Applies the discount to specific item(s) in the cart. This is required for product-specific promotion. Order: Applies the discount to the subtotal of all items in the order. | A “10% off your entire purchase” promo is set to “Order,” while a “BOGO Free on Shirts” promo is set to “Line Item.” |
| Affects | Specifies which charge the discount value will be subtracted from. | Product: Applies the discount to the cost of the product(s). Shipping: Applies the discount to the cost of shipping. | A “Free Shipping” promo is set to “Shipping,” while a “20% Off” promo is set to “Product.” |
| Type | Defines the kind of reduction the discount offers | Percentage (%): Reduces the cost by a percentage (e.g., 20% off). Amount: Reduces the cost by a fixed currency value (e.g., $10 off). Free: Makes the affected item(s) free (e.g., Free Shipping or a BOGO product). Fixed Price: Reduces the cost of an item or shipping to a specific price (e.g., “$5 Shipping”) | A “10% off” promo uses “Percentage,” a “$5 off” promo uses “Amount,” and a “BOGO Free” promo uses “Free.” |
| Stackable | Controls whether this discount can be combined with other stackable discounts. | Enabling this allows for layered promotions but requires careful assignment to a Layer (1, 2, or 3) to prevent margin erosion. Only visible if stackable discounts are enabled under Discount Settings. | A “10% off” site-wide sale and a “Free Shipping” offer are both marked as Stackable. |
2. Discount Conditions (Pre-conditions)
| Configuration Name | Business Purpose | Impact and Trade-offs | Concrete Example |
|---|---|---|---|
| Minimum Order Amount | Sets a minimum purchase amount (pre-discount) the order must meet to qualify. | A primary tool for increasing Average Order Value (AOV). | A “Free Shipping” discount is configured with a Minimum Order Amount of $50. |
| Maximum Order Amount | Sets a maximum purchase amount the order must not exceed to qualify. | Used for specific scenarios, like “Save $10 on orders under $50” to target smaller carts. | A “Small Order Bonus” discount is set with a Maximum Order Amount of $49.99. |
| Total Order Quantity | Requires a minimum number of total items in the cart to qualify. | Encourages purchasing multiple items, regardless of their individual value. Visible only for Order Level discounts. | A “Buy 3, Get 10% Off” discount sets Total Order Quantity to 3. |
3. Target Criteria (Post-conditions)
| Configuration Name | Business Purpose | Impact and Trade-offs | Concrete Example |
|---|---|---|---|
| Scope (Specific/All) | The “Get Y” part of a deal. Defines the pool of eligible items: All products, Specific Products, or Specific Categories. | This is the primary targeting mechanism for Line Item discounts. | For a “20% off all shoes” discount, the Scope is set to Specific Categories and “Shoes” is selected. |
| Shipping Method | Restricts a shipping discount to apply only to specific methods (e.g., “Ground”). | Allows for targeted shipping promotions, like “Free Ground Shipping” without discounting “Next Day Air”. Visible only when Affects is Shipping | A “Free Economy Shipping” discount selects only the “Ground” and “Economy” Shipping Methods. |
4. Message Conditions
| Configuration Name | Business Purpose | Impact and Trade-offs | Concrete Example |
|---|---|---|---|
| Include Threshold Message | Master toggle to enable shopper-facing messages | This feature is used to “upsell” shoppers to meet a discount threshold. It may require theme modifications to display. Requires Minimum Order Amount (Order Level). | A discount for “Free Shipping over $50” enables this message. |
| Threshold Value | The cart value at which to start showing the message. | Must be set lower than the Minimum Order Amount to notify shoppers they are close to qualifying. Requires Minimum Order Amount (Order Level). | For a “Free Shipping at $50” discount, the Threshold Value is set to $40. |
| Message Text | The text content of the message shown to the shopper. | This is the actual marketing copy the shopper will see. | ”You are only away from free shipping!”(where is the remaining amount) |
6. Discount Limitations
| Configuration Name | Business Purpose | Impact and Trade-offs | Concrete Example |
|---|---|---|---|
| Max Discount Value (Per Order) | Limits the total currency value this discount can provide to a single order. | Used to cap high-percentage sales. E.g., a “40% off” promo with a $100 limit will stop discounting after $250 of qualifying goods. | A “BOGO 50% Off” discount sets this to $100, so a shopper can’t get more than $100 off in one order. |
| Total Redemptions | Limits the total number of times the discount can be used across all orders | Used for “First 100 shoppers” promos. Requires shopper to be logged in. For guests, this must be set on the Coupon Set. | A “New Product Launch” discount is limited to 500 Total Redemptions. |
| Max Redemptions (Per Order) | Limits the number of times a discount can be redeemed within a single order. | Used for “Buy 2, Get 1 Free” type deals. If set to 1, only one item (the most expensive qualifying item) gets the discount.Only visible for Line Item discounts. | A “Buy 1, Get 1” deal has this set to 1; a “Buy 4, Get 2” deal would set this to 2. |
Promotion Type and Scope Matrix
The combination of a discount’s Type, Applies To (Scope), and Affects attributes determines its fundamental behavior. This matrix clarifies the supported primary configurations.| Applies To | Affects | Percentage | Amount | Free | Fixed Price | Auto-Add Free Product |
|---|---|---|---|---|---|---|
| Line Item | Product | Yes | Yes | Yes | Yes | Yes |
| Line Item | Shipping | Yes | Yes | Yes | Yes | No |
| Order | Product | Yes | Yes | No | No | No |
| Order | Shipping | Yes | Yes | Yes | Yes | No |
4. Key Capabilities and Business Applications
The Kibo Commerce promotions engine provides a range of distinct capabilities that address common and complex e-commerce scenarios.Capability: Stacking Tiered Discounts for Loyalty Programs
- Functional Explanation: Using the Stackable toggle and Discount Layer settings, a business can create multiple discounts that apply sequentially to an order. The system automatically optimizes the application order of discounts within the same layer to provide the best deal for the customer. The order value is then recalculated before applying discounts from the next layer. This allows for building complex, multi-level promotions.
- Business Application Example:
- Industry: Fashion & Apparel Retailer
- Scenario: To reward loyalty, a retailer creates two stackable promotions: a site-wide “20% off all Dresses” discount assigned to Layer 1, and a “VIP Members get an additional 10% off their entire order” discount assigned to Layer 2. A VIP member adds a $100 dress to their cart. The system first applies the Layer 1 discount, reducing the item price to $80. It then recalculates the order subtotal and applies the Layer 2 discount, for a final price of $72. This layered approach creates a clear, enhanced value proposition for top customers, resulting in higher loyalty and repeat purchases.
Capability: Hyper-Targeting with Custom Business Attributes
- Functional Explanation: The Discount Extensibility feature allows custom attributes from B2B Accounts, Customers or Orders to be used as conditions for a discount. After enabling the “Available for Discounts” toggle on a custom attribute, it becomes available in the discount rule builder, allowing for the creation of highly specific and targeted promotions.
- Business Application Example:
- Industry: B2B Industrial Distributor
- Scenario: A distributor wants to offer a special shipping discount to its highest-value clients. They have a custom attribute on their B2B Account object called AccountTier. They create a new shipping discount for “Free Freight Shipping” and add an Attribute Condition: B2B Attribute AccountTier is “Gold”. Now, only logged-in users associated with a “Gold” tier account will be eligible for this promotion, automating a key benefit of their partner program and strengthening B2B relationships.
Capability: Orchestrating a Themed Sale with Coordinated Content
- Functional Explanation: Using a Campaign, a business can schedule a discount to run concurrently with Site Variations. This capability allows for specific, themed versions of pages (like the homepage or category pages) to be automatically displayed only for the duration of the campaign, creating a fully immersive promotional event.
- Business Application Example:
- Industry: Direct-to-Consumer (DTC) Brand
- Scenario: A DTC coffee brand launches a “Summer Brews” campaign. They create a campaign scheduled for July 1-31. Within this campaign, they attach a “15% off Cold Brew Products” discount and a site variation for the homepage that features summer-themed imagery and messaging. When July 1st arrives, the homepage automatically updates to the summer theme and the discount becomes active simultaneously. This creates a cohesive and professional marketing event that automatically reverts to normal once the campaign ends, improving customer engagement without manual intervention.
5. Platform Integration Map
Upstream Dependencies
Successful promotion configuration relies on several other core platform components being in place first.- Catalog & Products: Discounts are fundamentally tied to a catalog and its constituent products and categories. A product must exist in the catalog with a defined price before it can be targeted by a discount. For variant-specific discounts, the product must be configured with its specific variant options (e.g., size, color).
- Custom Attributes: To create targeted promotions using Discount Extensibility, the relevant custom attributes must first be defined on customer, B2B account, location or order records and be made available for discounts.
Downstream Impacts
The application of a promotion has direct consequences for several downstream systems and processes.- Cart & Checkout: This is the primary point of impact, where the promotion engine evaluates cart contents against active discount conditions and calculates the final, discounted prices for the shopper to review before payment.
- Orders: Once a purchase is complete, the applied discounts are permanently recorded on the final order object. This data is important for fulfillment, financial reconciliation, and customer service.
- Quotes (B2B): Promotions and coupons can be applied to B2B quotes during the negotiation process. The platform treats the application of a promotion not as a final, immutable event, but as a dynamic state. The system is designed to re-price the quote and re-evaluate all applicable discounts whenever a change is made—such as an item quantity adjustment or a shipping address change. This means the promotion engine remains active throughout the B2B negotiation lifecycle, ensuring pricing accuracy as the quote evolves
Synergistic Features
Promotions achieve their greatest strategic value when used in combination with other complementary platform features.- Promotions + Price Lists: This combination is the core of any sophisticated, segmented pricing strategy. A business can use Price Lists to set the unique base price for a B2B account, then layer targeted, stackable promotions on top for special offers, ensuring the additional discount applies only when explicitly intended.
6. Related Conceptual Guides
To fully leverage the capabilities described in this guide, a comprehensive understanding of related platform concepts is recommended.For foundational knowledge, refer to:
- Catalog: Promotions are targeted at products and categories; a firm grasp of catalog structure is a prerequisite for building effective discount rules.
- Pricing: This guide is a prerequisite for comprehending how Kibo Commerce handles complex B2B and segmented pricing, and how discounts must be configured to interact with these custom price overrides
To understand downstream impacts, refer to:
- Fulfillment: This guide explains how applied discounts are stored and represented on a finalized order record, which is important for reporting and analysis.
- Cart & Checkout: This guide details the B2B quoting lifecycle and explains how promotions are applied and dynamically re-evaluated during the negotiation process
For complementary strategies, refer to:
- Catalog: This guide details how to create promotions that target specific product variants (e.g., a specific color or size) rather than just the base product.
- Location Admin and Location Groups: These guides provide the context for creating the custom data fields (including location attributes) that can be used for advanced promotion targeting via the Discount Extensibility feature.