Review a retention campaign that offers a discount
Check whether saved customers cover the cost of discounts given to others.
Compare against likely behavior without the offer
If 100 eligible customers receive a discount and a comparable holdout suggests only ten were retained by it, count the value of those ten incremental customers. Check whether the control and campaign groups were comparable.
Include discounts redeemed by existing loyal customers
A $12 discount redeemed by 40 customers costs $480 before any administrative fees. If ten incremental customers contribute $55 each before discounts, the estimated gain is $70 after the discount expense.
Measure what happens after the offer
Some customers leave when regular pricing returns. Compare active use and contribution at a later point. Separate future assumptions from realized results.
Try a related tool
Compare revenue per advertising dollar with the return needed to cover ad spend. Enter net revenue and contribution margin before ads.
