Analyse Discount Amount Over Time

Analysis > Discounts > Trend

Summary

The report helps you understand how discounts are impacting your sales over time. By analyzing the relationship between gross sales, discount amounts, and discount order % you can identify key trends and optimize your discounting strategy.

Questions the report answers

• How effective are discounts in driving sales?
• Are discounts being overused?
• When is the optimal time to offer discounts?

How to read the report

The chart visually shows how the Discount Amount and Discount Amount % have fluctuated over time helping you understand how much revenue you’re giving away through discounts.

Discount Amounts % shows the proportion of your gross sales that had discounts. A high discount % could indicate that you’re relying heavily on discounts to drive sales.

Discount Order % shows the proportion of orders that included a discount. A high discount order % suggests that customers are only purchasing when promotions are available. If the Discount Orders % is consistently high, customers may have come to expect discounts, which could hurt your profitability.

Track whether the increased discounting leads to higher Gross Sales Amount and Number of Orders. If sales increase, it may justify the discounts. If not, reconsider how and when you offer discounts. Analyze the period after the discounts, if you see a sharp decline in both Discount Amount % and Discount Orders %, but the sales volumes remained consistent. This could indicate that customers were still purchasing even without discounts, suggesting that discounting might not be necessary to drive sales during these periods.

When your Discount Amount % is high, but but gross sales and orders are flat or declining this indicates that discounts are not effectively driving sales, you might reassess your discount strategies.

Glossary

Gross Sales Amount

The total revenue generated from customer orders before any deductions, such as discounts, returns, or taxes.

Discount Amount

The total value of discounts applied to customer orders. It is calculated by summing the discount amounts of orders.

Discount Amount %

The percentage of total revenue that is accounted for by discounts applied to customer orders. It is calculated by dividing the total discount amount by the gross sales revenue.

Number of Orders

Total count of orders placed by customers. It is calculated by counting the number of orders.

Discounted Orders

The total number of orders where a discount was applied, either at the header level or at the line item level.

Discount Order %

The percentage of total orders that received a discount. It is calculated by dividing the number of discounted orders by the total number of orders.