What is Line Discount?
The Line Discount measure calculates the sum of all applied discounts on a specific line item within an order. It accounts for various discounts such as promotional codes, special offers, or bulk discounts applied to individual line items. This measure can be computed in either the shop currency or the presentment currency depending on the selected context.
Practical Example of Line Discount
Scenario:
- Line Item 1:
- Original price: $100
- Discounts applied: $20 (promotion)
- Line Item 2:
- Original price: $200
- Discounts applied: $50 (promotion + loyalty discount)
Line Discount for the order = $20 (Line Item 1) + $50 (Line Item 2) = $70
Why This Matters to Your Business
- Discount Monitoring:
- Helps track the effectiveness of promotional campaigns and discounts.
- Profitability Analysis:
- Provides insights into how discounts impact revenue and profit margins at the line item level.
- Customer Behavior:
- Identifies patterns in customer usage of discounts, helping merchants fine-tune offers for better engagement.
- Accurate Reporting:
- Ensures transparency in financial reporting by separating discounts from the original price.
How Does Line Discount Help Merchants?
- Campaign Performance Analysis:
- Enables merchants to evaluate which promotions are most utilized and profitable.
- Product-Level Insights:
- Provides detailed views of discount allocations for specific products or categories.
- Revenue Optimization:
- Guides merchants in crafting discount strategies that maximize conversions without eroding profits.
Why is Line Discount Even More Powerful When Combined with Other Measures?
- With Line Value:
Compare the total discounts against the gross revenue for each line item to determine net revenue. - With Order SubTotal:
Analyze the cumulative impact of line discounts on overall order totals. - With Total Discount:
Understand the proportion of line-level discounts in the context of discounts applied across the entire order.
Analyzing Line Discount with Different Dimensions
Merchants can analyze line discounts by:
- Product Types: Identify which products or categories receive the highest discounts.
- Regions: Determine geographic areas with higher discount usage.
- Channels: Evaluate discount distribution across online and in-store purchases.
Why Include Line Discount in Dashboards?
- Transparency: Provides a clear view of discounts applied at the granular level.
- Optimization: Helps merchants refine discounting strategies to enhance profitability.
- Customer Insights: Tracks customer interaction with discounts for targeted marketing.