New test. New client. And a classic problem: discount addiction.

They were handing out discounts like flyers at a mall—Email #1, website pop-ups, carrier pigeons (probably). And sure, it was driving revenue, but at what cost? Margin matters.

Now, I’m not here to kill the golden goose. If a company is used to discounting up a storm, I’m not about to waltz in and tell them to stop cold turkey. That’s a fast way to tank conversions and freak out the CFO. Instead, I wanted to see if we could reclaim some of that lost margin before handing out a discount.

The Plan: Smart Discounting, Not No Discounting

Instead of an all-or-nothing approach, we ran a 50/50 split test inside their Welcome Flow.

• Left Leg (50% of traffic): Sent straight to the original Email #1, which included the usual discount offer.

• Right Leg (50% of traffic): Sent to a new Email #1, but with no discount—just encouragement.

Then, anyone in the right leg who didn’t buy would loop back into the flow and get the discount email later.

This wasn’t about never discounting—it was about not discounting too soon.

Discounting is 100% part of my automation strategy, but it should be a last resort, not the opening move. If we can capture extra revenue before someone needs a discount to push them over the edge, that’s pure profit.

The Results: Did It Work?

So, yeah—the non-discount email had a slightly lower order rate. No surprises there. But we’re not just chasing revenue—we’re chasing profit. So let’s talk margin.

• Email #1A (Discount Email):

  • 28% of the total revenue came from non-discounted purchases.

  • 33% of the orders were placed without a discount.

• Email #1B (No Discount Email):

  • 38% of the revenue was non-discounted

    • (10 percentage points higher than the discount email).

  • 56% of orders came through at full price

    • (23 percentage points higher than the discount email).

So, yes, the total revenue was lower. But the percentage of full-price sales was significantly higher. And when you think about scale, that’s where the magic happens.

The Big Lesson: BOTH/AND, Not Either/Or

This isn’t about eliminating discounts. It’s about earning full-price sales first and using discounts only when necessary.

The move? Stack a few non-discount messages up front. A mix of email and SMS, pure encouragement. No incentives. The buyers who don’t need discounts will convert. The ones who do? They’ll wait for it.

Want to get even cleverer?

Before sending the discount, add in some conditional splits:

• If the person has been active on-site since the last email or since the start of the flow, that’s high intent.

• Instead of sending a discount, send another non-discount email and see if they convert.

Because it’s 2025. Revenue is vanity. Profit is sanity.

You need that margin, friend. And you need someone who knows how to squeeze every ounce of it from your email automations.

Don’t gamble. Get a partner who knows how to flex on your account and protect your profit.