Expert answer · 2 min read
How much revenue am I actually losing each month due to abandoned carts? Is there a simple way to calculate this?
The short answer
In depth
Finding the Right Recovery Discount Amount
The goal of a recovery discount is not to maximize the number of carts recovered - it is to maximize revenue and profit recovered. A 20% discount that converts 20% of abandoned carts may generate less profit than a 10% discount that converts 15% of carts, depending on your margins.
Discount Amount vs. Expected Recovery Rate
| Discount | Typical Recovery Rate | Margin Impact |
|---|---|---|
| 5% off | 5-8% | Minimal |
| 10% off | 8-14% | Low |
| 15% off | 12-18% | Moderate |
| 20%+ off | 15-22% | High |
Calculating the Optimal Discount
For each discount level, calculate: (Additional orders recovered x Average order value x Gross margin) minus (Total discount cost). The discount level with the highest net profit is the optimal choice for your store.
The Growth Suite A/B Testing Module runs discount amount experiments automatically, splitting traffic between variations and tracking not just conversion rate but revenue per visitor. This metric accounts for the margin cost of discounts, giving you a full-picture view of which discount level is most profitable, not just which converts the most carts.
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