Explore how discounts change unit economics and future purchasing behavior. Test, target, and track promotions with a profit and lifetime value lens.
Deep percentage discounts can reduce CLV primarily by lowering ______.
website uptime
SKU count
tax rates set by law
unit margin on each order
A common test design for promotions that protects margin is to optimize on ______.
social likes
incremental profit, not conversion rate alone
pageviews only
coupon redemptions regardless of lift
Promotions that cause stock‑up behavior can create a short‑term revenue spike followed by ______.
higher tax obligations immediately
automatic viral growth
permanent zero churn
a dip from purchase pull‑forward (cannibalization)
Targeting discounts to customers least likely to buy without them is the goal of ______ modeling.
topic
uplift (incrementality)
dimensionality reduction
image segmentation
For subscriptions, a permanent price discount raises CLV only if the retention gain ______ the margin loss.
always falls short of
is unrelated to
more than offsets
exactly equals
A free‑shipping threshold often preserves CLV better than a blanket 25% off because it ______.
guarantees faster shipping by law
changes product cost accounting
forces subscription signups
nudges order size without cutting price on every unit
Heavy reliance on discounts can train promo sensitivity, which often leads to ______.
higher gross margin by default
automatic improvements in organic search
lower full‑price purchase rates over time
fewer customers entering top RFM tiers
The right KPI for promotion targeting by cohort is typically ______.
raw coupon redemption count
incremental CLV or profit per treated customer
email open rate alone
impressions per session
To estimate CLV impact from a one‑time acquisition discount, model both immediate margin loss and ______.
changes in retention and repeat purchase rate
vendor SLA uptime
number of SKUs added to catalog
ad platform quality score
Running geo or time‑based holdouts for promotions helps because ______.
they guarantee higher AOV
they double ad budgets automatically
they reveal what would have happened without the discount
they eliminate the need for attribution
Starter
Good start. Recheck how margin and incrementality shape the real value of promotions.
Solid
Strong grasp. Keep focusing on holdouts and uplift so offers grow lifetime value.
Expert!
Exceptional. You optimize promotions on incremental profit and long‑run value.
