Discount Addiction Index

Assess if you are buying revenue with margins.

Stop guessing. Use causal incrementality to measure exactly what works and what simply takes credit.

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This is exactly what you get when you run your data.

Discount Addiction Index

Measure your reliance on discounts. Are you buying revenue at the cost of brand equity and future margins?

Discount Dependency
42%

Orders with promo code

AOV Erosion
-18%

vs Full Price AOV

Repeat Rate Drop
-25%

Discount buyers churn faster

Addiction Score
72

0-100 (Higher is worse)

Primary AnalysisLive Data
Main visualization of key metric drivers
Key Insights
  • High Addiction Score (72/100). You are effectively renting revenue.
  • Discount cohorts churn 25% faster than full-price cohorts.
  • AOV erodes by 18% during sales, wiping out the volume gains.
Deep Dive

Pull-Forward Effect (Cohort Analysis)

*Discount cohorts start higher (M0) but cross under due to lower repeat rates.

Data Transparency
Full breakdown of the underlying data points for verification.
DateDiscount %Gross RevNet RevRepeat Rate

Methodology

How SpendSignal calculates Discount Addiction Index

The Logic

Note: If my dataset has discount/promo rows, use them. If not, analyze the 'efficiency decay' of high-spend periods. 1. Are we seeing diminishing returns where more spend/volume yields lower structural revenue? 2. Is the 'Baseline' shrinking while 'Incremental' grows (indicating we are renting customers)? 3. Determine if we are past the threshold where volume destroys LTV.

Input Data Required

  • Date Column
  • Spend per Channel
  • Revenue / Conversions

Output Deliverables

  • Executive Dashboard
  • Strategic Insights
  • Downloadable PDF

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