What's the break-even point for different discount percentages?

• A 20% off campaign with 40% gross margin needs 100% volume increase to break even - essentially doubling your orders from non-discounted baseline
• Blanket sitewide discounts rarely achieve this because most redeemers would have bought anyway
• Targeted behavioral campaigns that only reach walk-away visitors can make deep discounts viable - because redemptions are genuinely incremental
• Minimum viable discount for most e-commerce: 10-15% at 40%+ gross margin

1. Calculate your gross margin %
2. Estimate your realistic incremental volume lift from behavioral targeting (typically 15-30%)
3. Find the discount % where break-even volume < your realistic lift estimate
4. That's your maximum viable discount depth

Growth Suite and Break-Even

Growth Suite's targeting ensures that a higher proportion of offer redeemers are genuinely incremental buyers. This shifts the break-even math significantly - a 15% off offer that requires 60% volume increase to break even on a blanket basis may only require 20-25% incremental conversion lift when targeted at true walk-away visitors, making it viable where a blanket campaign would not be.