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Test Promotions Before You Scale Them

Promotions can increase sales while reducing profit. A test shows whether the offer creates valuable customer behaviour before the business commits a large budget.

Presency Team · · 1 min read

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Test promotions before scaling them. A discount that increases sales but destroys your margin isn't necessarily a good promotion.

What to do

  • Define the exact goal: new customers, repeat purchases, stock movement or higher order value.
  • Run the offer with a limited audience, product set or time period.
  • Measure revenue, margin, acquisition cost and what customers do after the promotion ends.

Watch out for

Judging a promotion only by sales volume can hide the fact that the business gave away most of its margin.

Example

Before offering 20% off storewide for a month, a merchant can test it for one weekend on selected products and compare profit with a normal weekend.

Presency’s sales, customer and campaign workflows can give merchants a clearer record of what happened during an offer.

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