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Coupon Incrementality Reference Table

Compare coupon contribution at different incremental order shares, including the threshold where additional orders recover campaign costs.

By PriceAndProfit Editorial Updated

This table holds coupon redemptions at 200 and changes how many of those orders would not have occurred without the campaign. The original price is $80, variable order cost is $40, and each redeemed coupon reduces price by $10. Campaign setup costs $500. The coupon reduces contribution on every redeemed order, including customers who would otherwise have paid full price.

Incremental contribution = 200 × incremental share × $40 − 200 × $10 − $500
Hypothetical inputs and independently checked arithmetic
Incremental share of redeemed ordersExpected additional ordersOriginal contribution from additional ordersAll coupon reductionsNet incremental contribution
0% 0 $0 $2,000 −$2,500
25% 50 $2,000 $2,000 −$500
31.25% 62.5 $2,500 $2,000 $0
50% 100 $4,000 $2,000 $1,500
100% 200 $8,000 $2,000 $5,500

Interpret the result

The threshold is 31.25% of redemptions, not 31.25% of all visitors or all business sales. The fractional 62.5 is an expected-order threshold; a discrete scenario needs at least 63 genuinely additional orders to move above it. Coupon usage alone cannot reveal that counterfactual. Keep audience size, observation window and other offer changes comparable when estimating incrementality.

Check before applying the example

The table does not claim a campaign will achieve any listed share. If coupon or campaign costs make the required share greater than 100%, the model cannot recover those costs from this redemption base. Check refunds, capacity and any additional selling costs before applying the $40 original contribution input.

Use your own inputs

The calculator uses the same stated decision boundary.

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.

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