With these insights, the merchant split tested new promotional strategies to determine the sweet spot for driving high converting traffic that was truly aligned with their product value prop. This new promotional strategy led to an increased retention rate and CLV. With access to real-time user behavior data, they determined the discount range that was competitive enough to incentivize qualified target customers to convert, while not diminishing their brand and profit margins. This new promotional strategy lead to an increased retention rate and CLV, as their customers were more aligned with the brand’s core value proposition and less focused on deal-seekers.