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?

Promo-Elasticity & Churn Modeling
Discount Dependency
45%

Orders with promo code

AOV Erosion
-15%

vs Full Price AOV

Repeat Rate Drop
-20%

Discount buyers churn faster

Addiction Score
75

0-100 (Higher is worse)

Primary AnalysisLive Data
Main visualization of key metric drivers
Key Insights
  • Logic: Analyzed cohort behavior based on 'First Purchase Discount'.
  • Insight: Customers acquired on discount have 20% lower lifetime value.
  • Calculation: (Discounted Orders / Total Orders) * 100 = Dependency %.
Logic Used
  • We categorize orders into 'Discounted' (>10% off) vs 'Full Price'.
  • Dependency %: Share of revenue attached to a discount code.
  • Addiction Score: Weighted index of Dependency, Margin Erosion, and Churn differential.
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
2025-12-0820%12,0009,60015%
2025-12-090%8,0008,00035%
2025-12-100%8,0008,00035%
2025-12-110%8,0008,00035%
2025-12-120%8,0008,00035%
2025-12-130%8,0008,00035%
2025-12-140%8,0008,00035%
2025-12-1520%12,0009,60015%
2025-12-160%8,0008,00035%
2025-12-170%8,0008,00035%
2025-12-180%8,0008,00035%
2025-12-190%8,0008,00035%
2025-12-200%8,0008,00035%
2025-12-210%8,0008,00035%

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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