Give each customer the right discount size to increase revenue

This image shows an American Goldfinch from John James Audubon's The Birds of America (1827-1838). Each bird in the pair has a different color. Each customer also needs a different offer.

A better choice of discount for each customer increased revenue by 4.5%.

The study. Researchers from NYU and Columbia worked with a large US online store for home decor. They tested a new method to choose the daily email coupon for each of more than 20 million customers.

The finding. The new method increased the average revenue per customer by 4.5%, compared with the old rules of the store. The researchers say that chance is very unlikely to explain this result. The new method sent most customers a small or a large discount, and fewer medium discounts.

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