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Maximize Margins With A Discount Management System

Offer Management Platform

by RevTrax February 6, 2020

Picture this: You're giving away 20% off to anyone who comes to your website to buy a product. You know there's a subset of that audience that is likely going to buy anyway, and another subset that needs more of an incentive to convert. The only problem is that you have no means of acting upon this idea because you don't have the historical data, technology, or bandwidth to deploy such a program. Sound familiar?

Not to worry, we've found this to be a very common problem across all D2C brands. That's why we are writing this blog post to teach people how to leverage a discount management system to maintain low cost margins while maximizing top-level revenue.

So how do we define discount margins? We define it as the cost required from a discount perspective to move a product off the shelf. A discount management platform can enable you to dynamically serve offers based on a unique individuals price sensitivity. This will allow you to stretch your promotional budget and earn more revenue from the same promo-dollars. 

What to be wary of? One of the mains things to keep in mind is that the more variation of data the system has the better it will perform. Therefore if you are only running one or two unique discount values - it will be hard for the technology to determine what bucket to put different customers in. This can cause a stagnant effect on your programs because there is not real room for optimization.

To get started we suggest speaking to your Offer Management Platform about how to optimize discount margins through the use of dynamic offers. We urge you to use solutions backed by real data in order to ensure best results. If you have any question please contact us as hello@revtrax.com! We are happy to help.