Pricing and promotions decisions
Hey all. Pricing and promos is something I am not seeing discussed much here despite these decisions being the closest to conversion and margin.
One thing I keep hearing is that brands want to be more targeted with discounts, but don’t always know how to decide which products to discount, how deep the discount should be, or when to avoid discounting altogether. I’m also curious how people handle pricing changes when they’re not confident about the impact.
A/B testing seems appealing, but there are so many possible tests (esp. with a large catalog) and most brands don’t have unlimited traffic to test everything. There is the customer trust issue as well with running tests.
For operators here: how do you actually make these decisions today? How do you avoid falling back on sitewide discounts? What data are you using, or is it mainly intuition? Do you A/B test, and how do you decide which tests to run?