Personalizing storewide discounts for a secondhand appliances retailer

The Challenge

As a secondhand store, Secondshop offers discounts on all of its products. Adam, the founder, wanted a way to get more out of the discounts he was offering. Instead of wasting discounts on customers who would have converted at a higher price, he wanted to protect his margin and offer higher discounts to the select customers who needed the extra incentive.

Promi's Solution

We used Promi's AI model to personalize storewide discounts. 50% of visitors would see the personalized discounts, ranging from -5% to +5% of the existing discount for each product. The other 50% of visitors would see the existing product discount.

The Results

By reducing discounts for visitors with a high likelihood of converting and adding discounts for visitors with a low likelihood of converting, Promi was able to improve both revenue and profit. The personalized discounts generated +27% average revenue per visitor and +20% profit per visitor across the website relative to the existing non-personalized discounts.