What is Line Discounted Value?
The Line Discounted Value measure represents the total line price after all discounts have been applied. It provides the adjusted value of a line item in both shop currency and presentment currency, reflecting the actual amount charged to the customer post-discount.
Practical Example of Line Discounted Value
Scenario:
- Line Item 1:
- Original price: $100
- Discounts applied: $20
- Line Discounted Value: $100 – $20 = $80
- Line Item 2:
- Original price: $200
- Discounts applied: $50
- Line Discounted Value: $200 – $50 = $150
Line Discounted Value for the order = $80 (Line Item 1) + $150 (Line Item 2) = $230
Why This Matters to Your Business
- Real Revenue Representation:
- Reflects the actual revenue generated from each line item after discounts.
- Profitability Analysis:
- Helps in evaluating the impact of discounts on net revenue and profit margins.
- Customer Behavior Insights:
- Tracks customer purchase amounts after discounts to assess purchasing power and preferences.
- Financial Accuracy:
- Ensures accurate reporting of revenues post-discount, aligning with accounting standards.
How Does Line Discounted Value Help Merchants?
- Net Revenue Evaluation:
- Allows merchants to focus on actual revenue rather than gross amounts.
- Promotion Effectiveness:
- Highlights the discounted sales performance, helping merchants decide on future promotions.
- Price Elasticity Analysis:
- Indicates how customers respond to discounts and adjusted pricing strategies.
Why is Line Discounted Value Even More Insightful When Combined with Other Measures?
- With Line Discount:
Compare the discounted value to the total discount amount to see the relative impact of discounts on pricing. - With Line Value:
Analyze the difference between the original price and the discounted price to understand the depth of discounts.
Analyzing Line Discounted Value with Different Dimensions
Merchants can analyze discounted values by:
- Product Categories: See which categories yield the highest revenue after discounts.
- Seasons/Promotions: Evaluate the success of seasonal campaigns or promotional events.
- Regions/Channels: Determine where discounts drive the most effective results geographically or across online and offline channels.
Why Include Line Discounted Value in Dashboards?
- Revenue Transparency: Shows the actual earnings after discounts, giving a clear picture of profitability.
- Strategic Pricing: Helps merchants refine discounting strategies by understanding their effect on net revenue.
- Customer Insights: Provides a view of how customers interact with discounted prices, aiding in targeted pricing strategies.