How deep did holiday discounts run by department?
The short answer
Divide each department's discount dollars by the pre-discount value of its sales, once for the Black Friday and Cyber Monday period and once for the rest of the quarter, then compare the two. A large jump shows where the holiday event cut deepest. Check who bought at those depths, since some would have bought at a smaller discount.
Holiday discount depth, department by department
Why it matters
Holiday events can deliver a large share of quarterly revenue, and the discount set for that week shapes the quarter's margin. Knowing which departments discounted far deeper during the event than the rest of the quarter shows where next year's plan can hold more margin.
The question to ask
Copy this into Lexi as written.
How to work it out
1. Set the periods. Define the holiday event window, such as Black Friday through Cyber Monday, and the rest of the quarter.
2. Calculate depth for each. For each department, divide discount dollars by pre-discount sales value in each period.
3. Check the buyers. Compare event buyers with customers who bought the same department at full price earlier in the quarter.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a furniture retailer. It compares discount depth in the Black Friday and Cyber Monday window with the rest of the quarter by department.
- Sofas: 30% in the event, 12% the rest of the quarter
- Mattresses: 38%, against 15%
- Lighting: 20%, against 14%
What the data shows
Mattresses ran more than twice their usual depth, the biggest jump. Lighting barely changed.
What it means
40% of event mattress buyers were existing customers who viewed mattresses in the month before, which suggests many waited for the sale.
What to do
Reduce mattress depth next event and send recent mattress browsers an earlier, smaller offer.
Would you like to see who bought at each discount depth?
Frequently asked questions
Should discount depth use list price or the price before the event?
Use the regular selling price before the event, so depth shows the cut customers actually saw. If items were already on markdown, measure from the markdown price and track the markdown separately. Mixing the two makes holiday depth look deeper or shallower than it was.
Why compare the event with the rest of the quarter?
Holiday depth on its own says little. A 30% discount is modest for a department that runs 25% all quarter and deep for one that usually sells near full price. Comparing the event with the surrounding weeks shows where the holiday plan changed behavior and margin most.
Does a deeper holiday discount always bring in more revenue?
Not always. Beyond a point, extra depth mostly lowers the price for customers who would have bought at a smaller discount. Compare units and margin for departments at different depths, and test a shallower discount in one department to see how much volume it really costs.