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Retailers aren’t discounting to be generous. They discount to drive conversion. But when you throw codes at everyone, all the time, it stops working. And, they’re not always needed.

Our Intent Gap report found 83% of online shoppers say they’ve used a discount code when they would have paid full price.

That’s not incremental revenue you’re gaining. That’s margin erosion.

Worse still, this catch-all approach conditions customers to expect a discount. Once they’ve had that 10% off, they’ll wait for it next time. 

Shoppers aren’t fooled. They know the discount game. And they’re playing it better than most retailers. I’ve definitely logged in to my account, added some items to my basket and waited for that abandon basket email to come through. More than once. 

But we’ve already covered the problem with the status quo of discounting, both from the ecommerce leader’s perspective and why we think intent changes things. This piece is about how to solve it.

To be clear. We’re not saying discounting needs to stop. But it does need to change.

Rethink: Why you’re discounting 

Conversion rate matters. But it doesn’t tell the full story.

Of course if you give somebody a better deal they’re more likely to convert. So when it comes to the pros of discounting, we feel it’s smarter to be looking at metrics like:

• Incremental revenue: Are you gaining additional purchases, or giving away a % to those you’d have had anyway?
• Margin protection: Are discounts going to those who actually need them? Who wouldn’t purchase without?
• Intent to purchase: Are you helping someone over the line, or just handing out money to all?

Most retailers discount too early, too often, and to too many people. The fix isn’t more codes. It’s smarter targeting.

So where do you start?

Rethink: Who you’re discounting

At ���ϴ��¼�, we use a framework that maps where a visitor is in their buying stage (Engage, Build, Maintain, Convert), and what behavioural signals they’re showing (Focused, Struggling, Abandoning).

That gives us 12 core intent-based segments. And not all of them need a discount.

Start with visitors in the Maintain or Convert stages who are showing signs of struggle or abandonment. These people have intent. You’re just helping them follow through on it when they signal they’re hesitating, or going to leave.

On the other side, visitors in earlier stages or those showing focus don’t need an incentive nudge (at least not yet!). Give them one, and you’re spending margin unnecessarily.

Once you know who to target, the next step is how and when to show the offer.

Optimise: 2 ways to start discounting with intent

You don’t need to build something new. Just optimise what you’re already doing. Once you’ve tightened your audience, it’s time to rethink your triggers and delivery.

Play 1: Trigger discounts for high-intent abandoning visitors

Most retailers show discounts on landing. Pop-ups fire after 30 seconds, three pages, or immediately. But these rules have nothing to do with actual buying behaviour, they’re just proxies.

Instead, you should look for visitors with purchase intent. Then wait for signs of abandonment. Only then do you trigger the offer. And deliver it to visitors directly on site - not through an email sign-up campaign.

Appliances Direct adopted this play and focused their incentives on the Convert Abandon segment, also known as visitors showing high intent but clear exit signals. By targeting only this segment, they saved 42% in margin while maintaining conversion rates. See how Appliances Direct did it.

Better Bathrooms also used this exact approach to great effect. By targeting Maintain Intent Abandon visitors showing hesitation on PDPs, they triggered context-aware discounts only when abandonment looked likely. The result? A 25.6% increase in conversion rate without widening the net. Read more about Better Bathrooms' approach.

Why does this work?

• These visitors are already ready to buy, but something’s causing them not to
• You reduce giving away unnecessary discounts to casual browsers
• You create a smoother journey (no email sign-up delay, no inbox hunting for a code)

Besides, our Intent Gap report found 85% of online shoppers leave the site just to go find a discount code anyway. So either don’t make blanket offers, or don’t make them. Serve it when it matters instead.

Play 2: Offer timely incentives for struggling visitors

Not every visitor needs a discount. But some need a little help before they slip away.

While we recommend most retailers start by targeting Abandon signals, there’s a critical opportunity earlier in the journey. Struggling visitors. Our Maintain and Convert Struggle segments are shoppers who have shown clear intent, but are starting to lose confidence or momentum.

By detecting this behaviour in real-time, you can intervene. Either with the same promotional offer or a lighter-touch incentive, such as free delivery or even a lower-value discount.

These nudges help prevent drop-off before it turns into abandonment, while letting you reserve larger offers for those who really need them.

You can also factor in a visitor’s intent to return to site in the future. If someone is abandoning with high purchase intent but is unlikely to come back, you might want to push a stronger offer.

This is where the nuance of real-time intent shines. You’re not treating everyone the same. You’re responding with the right kind of support at the right time.

The core segments in our framework make these two plays possible with minimal effort. But the power of real-time intent data can take discount strategies even further.

Grow: What comes next

By this point, you’ve cut waste and improved impact. But what if you could push performance even further without giving away more?

Once you’ve refined your targeting and timing, the next stage is relevance and context. This is where Optimise starts becoming Grow.

���ϴ��¼� lets you track affinities to products, categories, price points or brands based on rising purchase intent. You can use this to personalise the discount depending on visitor interests or your margin. 

Seasalt Cornwall used this data to deliver category-based discounts only to visitors in the Maintain Abandon segment - those with clear product interest showing signs of hesitation. The result? An 89% uplift in conversion rate by focusing offers where they mattered most. Read the full Seasalt case study.

But this is just one way of interpreting it. Other examples include:

• Varying the discount amount based on product margin (e.g. 20% off dresses, 5% off jewellery)
• Offering an alternative incentive, such as free delivery on larger high-ticket goods, to further protect margin
• Using copy that makes the discount feel personal (“Still thinking about that top? Here’s 10% off”)

Now you’re not just nudging in the right time and place, but with the right offer for them. Tailoring both incentive type and depth to how your visitors are behaving, and where they are in their journey.

This is where smarter discounting becomes smarter merchandising.

What happens when you get this right?

When intent-based discount works, you don’t see conversion drop. You see:

• Stable conversion overall (because the people who don’t need a discount don’t miss it)
• Higher conversion for those who do receive the discount
• More incremental revenue and margin saved

You also build a better customer base. One that’s not hooked on the discount drug.

Discounting doesn’t have to feel like a trick. It can feel like understanding your visitor, and using the levers you have available to you.

Your first 3 steps

If you're looking to make an impact fast, here’s where to begin:

1. Replace early blanket discount pop-ups with intent-based triggers
2. Offer high-intent abandoning visitors a discount while they’re in-session
3. Intervene with high-intent struggling visitors, offering the same or a lighter incentive

From there, you should explore your segments further. Looking at affinity and intent to return data to identify the next priority.

This isn’t about giving more or even less discounts. It’s about giving smarter discounts, only when they make a difference.

Want to see how ���ϴ��¼� makes this possible? Get a demo of our real-time intent agent.