Discount impact
What a discount code actually cost in margin, against the extra sales it brought in.
What a discount code actually cost in margin, against the extra sales it brought in.
What it is
Discount impact measures the full effect of a promotion: the revenue it generated, the margin it gave away and whether it brought in customers who come back. A code can lift sales and still lose money once the discount comes out of every order.
Discount impact measures the full effect of a promotion: the revenue it generated, the margin it gave away and whether it brought in customers who come back. A code can lift sales and still lose money once the discount comes out of every order.
Discount impact measures the full effect of a promotion: the revenue it generated, the margin it gave away and whether it brought in customers who come back. A code can lift sales and still lose money once the discount comes out of every order.
The formula
Discount impact = Contribution margin of discounted orders − contribution margin those orders would have earned at full priceHow to read it
Look at margin, not only revenue. Then check who used the code: if it went mostly to customers who would have bought anyway, the discount paid for sales you already had.
Look at margin, not only revenue. Then check who used the code: if it went mostly to customers who would have bought anyway, the discount paid for sales you already had.
Look at margin, not only revenue. Then check who used the code: if it went mostly to customers who would have bought anyway, the discount paid for sales you already had.
How Cifra shows it
Cifra's Discount Impact report shows profit by discount code, so you can see which promotions paid for themselves and which ones only moved revenue.
Cifra's Discount Impact report shows profit by discount code, so you can see which promotions paid for themselves and which ones only moved revenue.
Cifra's Discount Impact report shows profit by discount code, so you can see which promotions paid for themselves and which ones only moved revenue.