Case Study: Increasing Profitability
with Dynamic Coupons

Baby Walz tests static discount tiers vs. dynamic coupons

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About Baby Walz

  • One of the leading online shops for baby & toddler products in Germany
  • €330 million revenue (2021)
  • Approx. 1,000 employees
  • Established company since 1952

Search Volume

15,000
monthly search queries for
Baby Walz + coupon

A/B Test Objective

Find out whether dynamic coupon mechanics increase profitability compared to static discounts.

Hypothesis

  • Static discount tiers lead to margin loss without added cart value.
  • Smart coupon mechanics like gamifications or dynamic upselling increase margins and cart size.
  • Active customer steering is possible

Takeaway

Smart, dynamically managed coupon systems and gamification are key drivers of profitability and targeted growth. Without smart mechanics, you're leaving real money on the table.

Comparison of Test Variants

Variant A

Static Discount Tiers

Mechanism

  • Fixed discount tier (e.g. €60 off €600)
  • Wheel of fortune with low-value discounts

Effect

  • Achieve purchase completion
  • Wheel aims to increase interaction

Variant B

Dynamic Cross Campaign Setup

Mechanism

  • Wheel of fortune with deliberately low discount values
  • Dynamic upselling campaigns tied to individual minimum order values

Effect

  • Optimize margins & cart values
  • Boost interaction & engagement
  • Minimize free-rider effects
  • Precisely steer customers

Test Results

Conversion Rate

Variant A/B
(Static Discount / Dynamic Setup)

Identical
Conversion rates in both variants
100%
higher conversion rate than coupon publishers

Margin & Cart Value

Margin is destroyed by free-rider effects!

Variant A
(Static Discount)

81%
used discounts with already reached threshold
0%
Cart growth – pure margin loss

Variant B
(Dynamic Setup)

43%
Upselling revenue
with increased cart values

Gamification (Wheel of Fortune)

Variant A
(Static Discount)

6%
Share of revenue from wheel

Variant B
(Dynamic Setup)

49%
Revenue share with optimized coupon margin

Conclusion

Static Coupons (Variant A)

  • ❌ Lead to free-rider effects without added value
  • ❌ Margin loss and profit reduction

Dynamic Mechanics (Variant B)

  • ✅ Targeted control of discounts & purchases
  • ✅ Higher cart values through upselling
  • ✅ No more discount hunters

Your Opportunity

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