Users wanted to know that they were receiving any advertised specials, deals, or discounts before they entered payment information. Coupon codes should be validated and reflected in the cost before requesting payment information. It is essential that users can see savings and understand how the total is calculated.
Our study participants often had difficulty understanding what was meant when a charge was listed in a line item and then later subtracted in a separate line item. It was clearer to users if the item was simply listed as free.
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It is not enough to post deals and coupons on the site without thinking about how they will be used and applied by your customers. Coupon codes posted on the site should be interactive and easy to apply with one click; those promotions offered to users in response to a specific action (e.g., subscription to the newsletter) should be delivered immediately so people can take advantage of them right away.
The frequency of your promotions and their visibility throughout your site should guide you in deciding whether you should use an open coupon-code field on the checkout page or you should just provide an unobtrusive link for entering the discount code.
Seal the deal and make customers feel confident by clearly showing how the coupon affected the final price or the terms of the purchase before they make their final decision to buy.