Chart · E-commerce
Worked Example: Coupon Orders and Natural Buyers
Reconcile profitable coupon orders with a campaign loss by separating customers who would buy anyway from genuinely additional orders.
Consider 200 orders using a $10 coupon against an $80 regular price. The included variable cost is $40 per order, and campaign setup costs $500. Suppose a controlled comparison supports a planning estimate that 50 of the orders are genuinely additional and 150 would have happened without the offer. The arithmetic tests that explicit assumption; it does not establish the estimate from coupon records alone.
Campaign lift = 50 × ($80 − $40) − 200 × $10 − $500 = −$500
| Step | Calculation | Amount |
|---|---|---|
| Promoted order revenue | 200 × $70 | $14,000 |
| Included variable cost | 200 × $40 | −$8,000 |
| Campaign setup | Separate campaign spending | −$500 |
| Contribution with campaign | $14,000 − $8,000 − $500 | $5,500 |
| Without-campaign contribution | 150 × ($80 − $40) | $6,000 |
| Incremental contribution | $5,500 − $6,000 | −$500 |
| Additional orders for recovery | $2,500 / $40 | 62.5 expected orders |
Interpret the result
The campaign has positive contribution of $5,500 yet reduces contribution by $500 compared with the stated alternative. That distinction is why a report can show profitable coupon sales while the promotion itself fails to add profit. At least 63 discrete additional orders would exceed the 62.5-order threshold in this example, provided the total remains 200 redemptions and the other inputs hold.
Check before applying the example
Check the observation window and audience composition behind the 150 natural orders. A later repeat order should not be added automatically unless its contribution is supported by a defined follow-up cohort and compared with expected repeats without the campaign. Refunds, extra support and fulfillment bottlenecks can lower the contribution input. If the coupon was already subtracted in net sales, do not subtract it again when reconstructing the full promoted-order income calculation.
Use your own inputs
The calculator uses the same stated decision boundary.
-
Calculator
Coupon Campaign Incrementality Calculator
Separate genuinely additional coupon orders from customers who would have bought anyway, then calculate the…
Method reference: OpenStax: Relevant Information for Decisions. Checked October 22, 2026. Relevant future cost and counterfactual comparisons; all commercial assumptions are supplied by the user.
Related calculators & guides
- Promotion Incrementality: Compare with a Baseline
- Budget Coupon Redemptions Before a Campaign
- Discount Cannibalization: Price the Lost Full Sales
- Estimate the Cost of Loyalty Points
- Referral Rewards: Count Both Sides of the Offer
- Affiliate Commission vs Fixed Sponsorship
- Cashback vs Instant Discount: Cost and Timing
- Free Trials: Conversion and Contribution
- Introductory vs Renewal Pricing Economics
- Subscription Pauses vs Cancellations
- Measure a Customer Reactivation Campaign
- Upsell vs Cross-Sell: Incremental Contribution
- Price an Abandoned-Cart Recovery Offer
- Restock or Liquidate a Returned Product
- Exchange vs Refund: Follow the Incremental Cash
- Budget for Damaged-Delivery Replacements
- Moving Sales Channels: Retention and Transition Costs
- Payment Disputes: Outcome Cost Scenarios
- Digital Products: Include Support Cost per Buyer
- Gift Card Redemption: Cash and Delivery Obligations
- Promotion Contribution Lift Calculator
- Coupon Campaign Incrementality Calculator
- Returned Inventory Recovery Calculator
- Channel Migration Contribution Calculator
- Coupon Incrementality Reference Table
- Returned Goods Recovery Reference
- Promotion and Recovery Economics Workbook
- E-commerce Unit Economics Workbook
Report an error
Thank you! Your feedback helps us make this page better.
Could not send. Please try again.