Expert answer · 2 min read
When is the right moment to show an offer to fence-sitters?
The short answer
In depth
The Right Metrics for Discount Campaign Performance
Conversion rate is a vanity metric when viewed in isolation for discount campaigns. The metrics that actually tell you whether a campaign is profitable are revenue per visitor, net margin per order, and incremental conversion - not raw conversion rate.
Core Campaign Metrics Framework
| Metric | Formula | Why It Matters |
|---|---|---|
| Revenue per visitor (RPV) | Revenue / Unique visitors | True campaign value |
| Incremental conversion | Offer CVR - baseline CVR | New purchases, not cannibalized |
| Net margin per order | (AOV - COGS - discount) / AOV | Actual profitability |
| Offer redemption rate | Redeemed / Shown | Offer relevance signal |
| Discount dependency rate | Discount orders / Total orders | Long-term brand risk |
Campaign Evaluation Scorecard
Green
RPV up, margin stable
Scale the campaign
Yellow
CVR up, RPV flat
Reduce discount depth
Red
CVR up, RPV down
Pause, recalibrate
Growth Suite's Funnel Report shows offer-influenced revenue vs total revenue, letting you separate incremental gains from cannibalized full-price sales. The Cart Insights report breaks down average order value by whether an offer was applied - critical for catching margin erosion early.
Discount Dependency Warning Signs
- - More than 40% of orders using a discount code
- - Customers waiting for sale emails before purchasing
- - Baseline (non-campaign) conversion rate declining over 90 days
- - AOV on non-discount orders dropping quarter over quarter
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