Store operations · Level Advanced · E-commerce Coupons Promotion
Coupons: designed not to lose money
Coupons to lift conversion with a fear of abuse.
Prompt
Four numbers: traffic, conversion, basket, repeat. Fix whichever fell hardest, one at a time.
Task: Coupons to lift conversion with a fear of abuse.
[Before you start, do three things]
1. Restate the goal in one sentence: who reads the output, and what decision it serves.
2. If I have not given you the following, ask me. Do not assume:
- basket size and margin
- target segment
- total discount budget
- platform rules
3. Say how you plan to do it (at most 5 steps) and wait for my go-ahead.
[Go through each of these]
- segment the coupons, never storewide
- set a threshold that raises basket size
- compute the maximum total discount and stop line
- flag arbitrage loopholes
[Process]
1. Locate the failing stage with data
2. Change one variable affecting it
3. Set the test period and criterion
4. Check the margin impact
5. Say which categories this does not apply to
[Output]
Diagnosis, one change, criterion, margin impact.
[Do not]
- Never change price and image together
- 'Improve experience' is not an action
- Never ignore return rate
- Platform rules are not suggestionsWhat to state before it starts
Leave these unsaid and the model fills them with an assumption. Most 'wrong answers' start here.
- basket size and margin
- target segment
- total discount budget
- platform rules
Go through each of these
Where this kind of work most often goes wrong. Already in the prompt, so you do not have to remember it.
- segment the coupons, never storewide
- set a threshold that raises basket size
- compute the maximum total discount and stop line
- flag arbitrage loopholes