What promotional dependency looks like by subcategory
The short answer
Divide the units a subcategory sold during sale periods by its total annual units, and you have its promotional dependency. Above 50% means the subcategory sells more on promotion than at full price. Check who buys it in those periods, since dependency driven by discount-only shoppers is harder to reverse than dependency driven by timing.
Promotional sales percentage, worked through
Why it matters
A subcategory that relies on sale periods earns most of its volume at reduced margin and trains customers to wait. Knowing which ones cross 50% shows where to rethink pricing, buy depth or promotion strategy before the habit spreads.
The question to ask
Copy this into Lexi as written.
How to work it out
1. Mark the sale periods. List every sale event and its dates, so units can be split into sale and non-sale periods.
2. Calculate the share. For each subcategory, divide units sold during sale periods by total annual units.
3. Check the buyers. For subcategories above 50%, find how many of their sale-period buyers ever buy them at full price.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a homewares retailer. It measures the share of each subcategory's units sold in sale periods over a year.
- Bath towels: 62% of units in sale periods
- Candles: 36%
- Throws: 54%
What the data shows
Towels and throws both cross 50%, for different reasons.
What it means
Most throw buyers in sale periods also buy throws at full price in winter, so their dependency is about timing. Only 18% of towel sale buyers have ever paid full price for towels, which points to a group that waits for the discount.
What to do
Leave throws in the sale calendar. Take towels out of one sale event and watch full-price units.
Would you like me to build the towel discount-only buyers as a segment?
Frequently asked questions
What is the difference between promotional dependency and discount dependency?
Promotional dependency measures a product's reliance on sale periods: the share of its units sold during promotions. Discount dependency usually describes customers: the share of a customer's purchases made on discount. The two connect, because subcategories with high promotional dependency often attract discount-dependent customers.
Does a high promotional share always mean a pricing problem?
No. Seasonal categories can sell heavily in sale periods that happen to fall at peak demand, and their buyers may pay full price at other times. Check whether sale-period buyers ever buy at full price. If few do, the subcategory has a pricing or positioning problem worth fixing.
How do you reduce sales dependent on promotions?
Lower depth before frequency, and change one subcategory at a time. Test a smaller discount on sale-period lines, or a lower everyday price with fewer events, and compare full-price units and margin with a matched set of stores or a holdout. Pull back first on lines where full-price buyers already exist.