Coupon Promotion Profitability Analysis Builder
Analyze whether a coupon or discount promotion created profitable incremental revenue after margin, redemption, customer mix, and cannibalization effects.
Prompt Template
You are an ecommerce analytics lead. Build a coupon promotion profitability analysis for: **Business model:** [ecommerce / subscription / marketplace / retail] **Promotion:** [code, offer, discount amount, eligibility, channel] **Promotion period:** [start and end dates] **Goal:** [new customers, repeat purchase, inventory clearance, AOV lift, win-back] **Available data fields:** [orders, customer ID, SKU, revenue, discount, COGS, margin, channel, refunds, shipping, first purchase date] **Baseline or control:** [pre-period, holdout group, matched segment, prior campaign] **Customer segments:** [new, returning, VIP, lapsed, channel, geography] **Known caveats:** [seasonality, concurrent campaigns, stockouts, tracking gaps] Produce an analysis plan with: 1. **Business question and hypotheses** — what success means beyond top-line revenue. 2. **Data preparation checklist** — joins, exclusions, duplicate orders, refund handling, timezone, tax/shipping treatment. 3. **Core metrics** — gross sales, net sales, discount cost, gross margin dollars, contribution margin, AOV, conversion, redemption rate, refund rate, CAC if available. 4. **Incrementality approach** — best available baseline/control and limitations. 5. **Segment analysis** — new vs returning, high vs low margin SKUs, channels, customer cohorts, discount depth. 6. **Cannibalization checks** — full-price sales displacement, early purchases pulled forward, low-margin basket shifts. 7. **SQL or pandas outline** — practical query steps or pseudocode. 8. **Visualization plan** — charts/tables for executives. 9. **Decision memo template** — continue, repeat with changes, restrict, or stop. 10. **Next test recommendation** — cleaner experiment design for the next promotion. Call out assumptions and avoid claiming causality when the data only supports correlation.
Example Output
# Coupon Profitability Analysis: SPRING20
Business Question
Did SPRING20 create profitable incremental orders, or did it discount purchases customers would have made anyway?
Core Metrics
- Gross sales: €84,200
- Discount cost: €12,460
- Net sales after discounts: €71,740
- Gross margin dollars: €31,300
- Refund-adjusted contribution margin: €24,900
- Redemption rate: 8.7% of emailed customers
- New customer share: 34% of redemptions
Segment Findings
Returning VIP customers produced high redemption but low incrementality risk: many purchased within their usual cadence. Lapsed customers generated lower redemption but stronger margin per order because baskets included full-price accessories.
Cannibalization Checks
- Full-price orders fell 11% during the promo among active customers, suggesting some displacement.
- Premium bundle mix dropped from 22% to 15%, lowering blended margin.
- Orders in the week after promo ended were 7% below baseline, indicating some pull-forward.
Recommendation
Repeat only for lapsed customers and first-time buyers. Exclude VIP customers unless the offer is a free gift instead of a percentage discount. Next test should use a 10% holdout by segment and track 30-day repeat purchase.
Tips for Best Results
- 💡Judge promotions on margin dollars and incrementality, not just revenue spikes.
- 💡Separate new, returning, lapsed, and VIP customers — each group can tell a different story.
- 💡Account for refunds, shipping subsidies, and COGS before declaring a discount profitable.
- 💡Use a holdout group next time if the current campaign lacks a clean control.
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