A/B Testing Your Discount Strategy: A Step-by-Step Guide

Most brands guess at their discount strategy. The best brands test it systematically.

Here's our proven A/B testing framework for promotional optimization:

Test 1: Discount Type
Variant A: 20% off
Variant B: $20 off
Metric: Conversion rate by price point

Test 2: Discount Depth
Variant A: 15% off
Variant B: 25% off
Metric: Revenue and margin impact

Test 3: Promotional Format
Variant A: Site-wide sale
Variant B: Tiered discounts ($10 off $50, $25 off $100)
Metric: Average order value

Test 4: Messaging
Variant A: 'Save 20%'
Variant B: 'Members Save 20%'
Metric: Perceived value and conversion

One fashion retailer ran this exact sequence and discovered:
- 15% off for new customers (vs 20%): Same conversion, +5% margin
- $20 off $150 for returning customers: +31% conversion vs percentage discount
- 'Member Exclusive' messaging: +18% conversion vs generic discount

The result: 31% overall conversion lift while maintaining margins.

The key lesson: every audience is different. What works for one brand may not work for yours. Test everything.