How Targeted Discounts Drove a 20% Sales Lift for a CPG Brand
Introduction
Discounts aren’t just price cuts—they’re strategic levers that, when used thoughtfully, can spark trial, drive repeat purchases, and deepen customer loyalty. In this post, we’ll dive into a real-world campaign from a mid-sized dairy brand and pull out the lessons you can apply immediately—no complex tech stack required.
Case Study Overview
In November 2023, the brand partnered with Swiftly to launch a digital coupon promotion aimed at introducing four new yogurt varieties. Their goals were twofold: entice previous buyers to try the new flavors and attract new households into the fold.
MetricResultOn-site Sales Lift+20.1%Incremental On-site ROAS$3.84 per $1 spentOff-site ROAS$17.37 per $1 spent
Step 1: Choosing the Right Products
Not every SKU benefits equally from discounts. The brand selected four yogurt varieties with the highest margin potential. This ensured that even after discounting, profitability remained strong—and the perceived value to consumers was clear.
Visual Suggestion: A simple carousel of the four featured yogurt cups, each tagged with “10% off” badges.
Step 2: Crafting Personalized Offers
Instead of a blanket coupon code, the team created unique codes for two segments:
Existing Subscribers: Offered “WELCOMEBACK10” via email—rewarding loyalty and encouraging a repeat purchase.
Lookalike Prospects: Delivered “TRYNEW10” through Facebook and Instagram ads—targeting audiences modeled on their best customers.
This segmentation allowed precise tracking of redemption rates and ROAS by segment.
Step 3: Distribution Channels & Timing
Email: Sent a dedicated coupon blast on Monday morning, when open rates peak.
Social Ads: Ran concurrently on Facebook and Instagram with carousel ads showcasing each flavor.
On-Site Popup: For first-time visitors, a timed popup after 30 seconds offered the “TRYNEW10” code.
By staggering the launch—email first, then social, then on-site—the brand maximized visibility without overwhelming any single channel.
Step 4: Real-Time Optimization
Using Swiftly’s dashboard, the marketing team monitored each coupon code’s performance hourly. Underperforming codes were paused after 48 hours, and budget was reallocated to the top-performing segment. This agile approach prevented waste and boosted overall campaign efficiency.
Key Learnings & Best Practices
Precision Over Broad Cuts: A 10% discount felt meaningful without slashing margins excessively.
Segmented Codes: Unique codes per audience let you compare true performance.
Channel Mix Matters: Combining owned (email), paid (social ads), and on-site promotions creates multiple touchpoints.
Data-Driven Tweaks: Real-time dashboards empower you to cut losers fast and scale winners.
Diagram: Redemption Rate by Channel (Email vs. Social vs. On-Site)
Avoid These Common Pitfalls
Generic Messaging: Sending the same coupon to everyone dilutes impact. Personalize your offer and copy for each segment.
Overly Complex Codes: Keep coupon codes short and memorable—no one wants to type “DAIRY2025HOLIDAYCAMPAIGN20OFF.”
Ignoring Attribution: Use unique tracking parameters so you know exactly where each redemption originated.
Planning Your First Discount Campaign
Select One High-Margin Product: Start small—test on a single SKU for clearer insights.
Define Two Audiences: One existing and one prospect segment.
Create Two Codes: Label them clearly (e.g., LOYAL10 vs. NEW10).
Pick Two Channels: Email plus one paid channel (Facebook or Instagram).
Monitor Daily: Pause underperformers after 48 hours; double down on the winners.
Conclusion & Next Steps
Discounts, when tailored and measured, can deliver powerful growth without eroding your bottom line. Ready to design a campaign that fits your brand and goals? Let’s chat.
