E-commerce · Marketing
Promotion effectiveness
Measuring which discounts and campaigns drive profitable sales.
Return on promotion cost, by offer
Free shipping at $75
15% off
25% off
20% off sitewide
Finding
Free shipping at $75 returns 3.2x its cost; 25% of promo sales would have happened at full price.
Who it's for
Marketing teams optimizing promotional spend for maximum ROI.
What it solves
Determine which promotions drive incremental revenue vs. cannibalize full-price sales.
Questions it answers
Best performing promo?
Free shipping at $75 drives 3.2x ROI vs 20% off sitewide.
Cannibalization?
25% of promo sales would have happened at full price - $180K monthly margin loss.
Optimal discount?
15% off converts nearly as well as 25% off with 40% better margins.
- Which promotions have best ROI?
- Are discounts cannibalizing full-price sales?
- What's the optimal discount level?
- How do flash sales perform vs. ongoing promos?
The impact
- Increase promo ROI by 50%
- Reduce margin erosion by 30%
- Optimize promotional calendar
The data it needs
- Promotion code usage
- Sales with/without discount
- Historical purchase patterns
- Margin data
Read in place in your warehouse. Nothing is copied out.
Promotion effectiveness: frequently asked questions
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