Expert Answer • 2 min read

How do I analyze which products perform best with discounts?

As an e-commerce manager, I'm struggling to understand which products in my store respond best to discounts. I want to make data-driven decisions about promotional strategies, avoid unnecessary margin reduction, and identify which items drive the most revenue when discounted. My current approach feels like guesswork, and I need a systematic method to analyze product performance during sales and promotions to optimize my discount strategy effectively.
Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO

2 min

TL;DR - Quick Answer

Analyze product discount performance by tracking key metrics like conversion rate lift, revenue per discounted item, margin preservation, and comparative performance between full-price and discounted periods using comprehensive sales analytics and segmentation.

Complete Expert Analysis

Strategic Product Discount Performance Analysis

Identifying which products perform best with discounts requires a multi-dimensional approach that goes beyond simple sales volume tracking.

Key Performance Metrics for Discount Analysis

MetricCalculationSignificance
Conversion Rate Lift(Discounted Conversion Rate / Standard Conversion Rate) - 1Measures discount effectiveness in driving purchases
Margin PreservationGross Profit % During Discount / Standard Gross Profit %Ensures discounts don't erode profitability
Revenue Per Discounted ItemTotal Discount Period Revenue / Units SoldEvaluates true economic impact

Comprehensive Analysis Framework

1. Baseline Performance Establishment

  • Track 3-6 months of pre-discount sales data
  • Identify baseline conversion rates and average order values
  • Segment products by category, price point, and historical performance

2. Discount Impact Assessment

  • Compare performance during discount vs. non-discount periods
  • Analyze conversion rate changes across different discount percentages
  • Evaluate customer acquisition cost during promotions

3. Advanced Segmentation Strategies

  • Group products by margin, price range, and historical sales velocity
  • Identify high-potential discount candidates
  • Create targeted discount strategies per product segment

Recommended Analysis Tools

Quantitative Analysis

  • Spreadsheet comparative analysis
  • Statistical significance testing
  • Regression analysis for predictive modeling

Qualitative Considerations

  • Customer feedback and sentiment
  • Competitive pricing landscape
  • Seasonal demand fluctuations

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Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO of Growth Suite

With over a decade of experience in e-commerce optimization, Muhammed founded Growth Suite to help Shopify merchants maximize their conversion rates through intelligent behavior tracking and personalized offers. His expertise in growth strategies and conversion optimization has helped thousands of online stores increase their revenue.

E-commerce Expert Shopify Partner Growth Strategist

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