Discount Code Performance

Analysis > Discounts > Discount Code

Summary

The report gives you a detailed view of how different discount types or specific discount codes are impacting your sales performance.

Questions the report answers

• How effective are different discount types or discount codes in driving sales?
• How do discounts impact customer repeat behavior?
• How are specific discount codes or types performing compared to one another?

How to read the report

The report provides several key performance indicators (KPIs) such as Gross Sales Amount, Discount Amount, Discount Amount %, Number of Orders, Sales Amount, Average Order Value (AOV) and Average Days to Repeat for each discount type or discount code.

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.

If the Discount type or code has balanced performance across Gross Sales, AOV, and Average days to repeat indicates that the discount is well-structured and is working as intended without creating any dependency on discounts.

Here are some different scenarios you may encounter when analyzing the report.

• High Gross Sales Amount but has a low AOV
  • Customers are using the discount to purchase lower-value products, which boosts the number of orders. This could be due to discounts on low-priced items or broad discounts with no minimum purchase thresholds.
• Low Gross Sales Amount but has a high AOV
  • Discount is used by a small number of customers, but those who do use it are making high-value purchases indicating that the discount is targeting a premium customer segment, or may be relevant to high-ticket items.
• Low Discount Amount % but high AOV
  • Customers are spending significantly even with a small discount suggesting that the discounts are compelling enough to drive purchases without impacting the profit margins.
• High Discount Amount % but low Gross Sales Amount
  • Even after giving generous discounts, it does not increase the number of orders or total sales indicating that the discounts are not well-targeted or aren’t perceived as valuable by customers.
• High Discount Amount % with high Gross Sales Amount and high AOV
  • Though the high discount is driving Gross Sales Amount and increasing AOV, the high discount % is likely impacting profit margins.
• High Average days to repeat with low AOV
  • Customers who use this discount type or code take longer to make a repeat purchase, and they spend less per order indicating that the discount isn’t building long-term loyalty, or not compelling enough for customers to keep returning.

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.