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Increasing revenue and profit with Promi volume discounts
The Challenge
Brisk Shirts wanted to increase it's AOV to improve margins and overcome high shipping costs, but traditional volume discounts tended to eat into margins. They needed a way to increase AOV more intelligently, instead of giving out discounts on all the large orders that were already occurring.
Promi's Solution
Our team ran an A/B test with Brisk to test if personalized discounts could generate more revenue and margin than a flat discount available to all customers. Half of visitors saw the Promi discount for orders of 3+ shirts, ranging from 10-20% off depending on each visitor's price elasticity. The other half saw a fixed 15% discount.
The Results
Promi's personalized volume discount generated +67% average revenue per user, +35% conversion rate, and +24% average order value compared to the 15% off fixed discount. The best part? Promi was able to do this with a lower average discount value than control. Promi's average discount was 14% per order, compared to 15% for control.
This campaign led to a +34% increase in storewide revenue.
"We've seen transformative results from personalizing our discounts. The Promi team has also been incredibly helpful in getting set up and recommending best practices for our discounts."
Saad - Founder, Brisk Shirts
Promi Case Study
+67%
ARPU
+34%
Conversion
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