Discount Ladder

A discount ladder is a strategic approach to drive conversions in which a brand sends multiple increasing discounts to a shopper at different intervals of their shopping journey.

What Is a Discount Ladder?

Discounts are great tools for engaging and retaining customers, but if a brand gives away too many discounts, it risks tightening its profit margins. A discount ladder enables the brand to manage discount codes over time, slightly increasing the discount amount at varying intervals to entice customers to engage with the brand. For example, a brand might send a 10% discount to a shopper who abandoned their online shopping cart. If that customer hasn't re-engaged after a month, the brand could activate its discount ladder to send another marketing message with a 15% discount. If that doesn't work, they might increase that to a 20% discount after another month. In this way, the discount ladder enables the brand to monitor their margins while giving customers various opportunities to benefit from rewards.

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