How a Tiered Discount Design
Increased AOV by 8%
How a Tiered Discount Design
Increased AOV by 8%
Boosting AOV with Smart, Seamless Purchase Incentives
To boost Average Order Value for an e-commerce brand, I designed and tested a progressive discount model based on cart value milestones. Instead of offering a flat 40% discount upfront, we incentivised higher spending through tiered thresholds, encouraging customers to unlock bigger savings as they added more to their cart. A controlled A/B test showed the milestone-based experience increased AOV by 8%, outperforming the flat discount offer.
To boost Average Order Value for an e-commerce brand, I designed and tested a progressive discount model based on cart value milestones. Instead of offering a flat 40% discount upfront, we incentivised higher spending through tiered thresholds, encouraging customers to unlock bigger savings as they added more to their cart. A controlled A/B test showed the milestone-based experience increased AOV by 8%, outperforming the flat discount offer.
To boost Average Order Value for an e-commerce brand, I designed and tested a progressive discount model based on cart value milestones. Instead of offering a flat 40% discount upfront, we incentivised higher spending through tiered thresholds, encouraging customers to unlock bigger savings as they added more to their cart. A controlled A/B test showed the milestone-based experience increased AOV by 8%, outperforming the flat discount offer.
Role
Role
Role
Lead Product Designer
Lead Product Designer
Lead Product Designer
Time
Time
Time
1 week
1 week
1 week
Team
Team
Team
8 people
8 people
8 people
Home Video Widget
PLP Offer Info
PLP Tier Incomplete
PLP Tier Completed
PDP Offer Info
PDP Tier Incomplete
PDP Tier Completed
Cart Tier Incomplete
Cart Tier Completed
Home Video Widget
PLP Offer Info
PLP Tier Incomplete
PLP Tier Completed
PDP Offer Info
PDP Tier Incomplete
PDP Tier Completed
Cart Tier Incomplete
Cart Tier Completed
Home Video Widget
PLP Offer Info
PLP Tier Incomplete
PLP Tier Completed
PDP Offer Info
PDP Tier Incomplete
PDP Tier Completed
Cart Tier Incomplete
Cart Tier Completed
Quick Overview
Quick Overview
⭐ Challenge
⭐ Challenge
⭐ Challenge
Customers weren’t spending beyond the minimum to qualify for the existing flat 40% discount. This capped average order value and limited upsell potential.
Customers weren’t spending beyond the minimum to qualify for the existing flat 40% discount. This capped average order value and limited upsell potential.
Customers weren’t spending beyond the minimum to qualify for the existing flat 40% discount. This capped average order value and limited upsell potential.
✅ SOLUTION
✅ SOLUTION
✅ SOLUTION
Designed a “Buy More, Save More” progressive discount system, breaking one flat discount into multiple cart value milestones (e.g., Spend ₹X → 20% off, Spend ₹Y → 30% off, Spend ₹Z → 40% off).
Designed a “Buy More, Save More” progressive discount system, breaking one flat discount into multiple cart value milestones (e.g., Spend ₹X → 20% off, Spend ₹Y → 30% off, Spend ₹Z → 40% off).
Designed a “Buy More, Save More” progressive discount system, breaking one flat discount into multiple cart value milestones (e.g., Spend ₹X → 20% off, Spend ₹Y → 30% off, Spend ₹Z → 40% off).
🎯 impact
🎯 impact
🎯 impact
+8% Average Order Value
+70% orders exceeding first milestone
Improved overall revenue without hurting profit margins
+8% Average Order Value
+70% orders exceeding first milestone
Improved overall revenue without hurting profit margins
+8% Average Order Value
+70% orders exceeding first milestone
Improved overall revenue without hurting profit margins
User Segmentation
User Segmentation
To design a solution that truly addressed purchase behavior, we first identified the key user groups engaging with the platform.
To design a solution that truly addressed purchase behavior, we first identified the key user groups engaging with the platform.
To design a solution that truly addressed purchase behavior, we first identified the key user groups engaging with the platform.
Value Driven Shoppers
Value Driven Shoppers
Always looking for the best deal, tend to compare offers before buying.
Motivated by discounts but sensitive to how and when those discounts are presented.
Always looking for the best deal, tend to compare offers before buying.
Motivated by discounts but sensitive to how and when those discounts are presented.
Always looking for the best deal, tend to compare offers before buying.
Motivated by discounts but sensitive to how and when those discounts are presented.
Goal-Oriented Buyers
Goal-Oriented Buyers
Come with a specific purchase in mind; want speed and clarity in checkout.
Less likely to browse unless presented with compelling, relevant offers.
Come with a specific purchase in mind; want speed and clarity in checkout.
Less likely to browse unless presented with compelling, relevant offers.
Come with a specific purchase in mind; want speed and clarity in checkout.
Less likely to browse unless presented with compelling, relevant offers.
Casual Browsers
Casual Browsers
Spend time exploring; may buy impulsively if incentivised.
Often influenced by promotions tied to spending thresholds.
Spend time exploring; may buy impulsively if incentivised.
Often influenced by promotions tied to spending thresholds.
Spend time exploring; may buy impulsively if incentivised.
Often influenced by promotions tied to spending thresholds.
Why was this necessary?
Why was this necessary?
Why was this necessary?
Each group responds differently to incentives. Understanding their behaviours helped us identify gaps in how our offers were presented and, more importantly, where we were leaving Average Order Value (AOV) growth on the table.
Each group responds differently to incentives. Understanding their behaviours helped us identify gaps in how our offers were presented and, more importantly, where we were leaving Average Order Value (AOV) growth on the table.
Each group responds differently to incentives. Understanding their behaviours helped us identify gaps in how our offers were presented and, more importantly, where we were leaving Average Order Value (AOV) growth on the table.
What Wasn’t Working (and Why It Mattered)
What Wasn’t Working (and Why It Mattered)
User Problems
User Problems
Limited Incentive Progression
Limited Incentive Progression
Limited Incentive Progression
Users were given a flat 40% discount upfront, regardless of cart size. This meant there was no reason to add more items or spend more than the minimum needed.
Users were given a flat 40% discount upfront, regardless of cart size. This meant there was no reason to add more items or spend more than the minimum needed.
Users were given a flat 40% discount upfront, regardless of cart size. This meant there was no reason to add more items or spend more than the minimum needed.
Lack of Spend Motivation
Lack of Spend Motivation
Lack of Spend Motivation
Value-driven and casual users didn’t feel rewarded for incremental spending; there was no gamification or milestone-based incentive to cross higher cart values.
Value-driven and casual users didn’t feel rewarded for incremental spending; there was no gamification or milestone-based incentive to cross higher cart values.
Value-driven and casual users didn’t feel rewarded for incremental spending; there was no gamification or milestone-based incentive to cross higher cart values.
No Clear Communication of Benefits
No Clear Communication of Benefits
No Clear Communication of Benefits
Offers were easy to miss in the shopping flow, leading to users checking out without realizing they could unlock bigger savings by adding more.
Offers were easy to miss in the shopping flow, leading to users checking out without realizing they could unlock bigger savings by adding more.
Offers were easy to miss in the shopping flow, leading to users checking out without realizing they could unlock bigger savings by adding more.
Business Problems
Business Problems
Missed Revenue Opportunities
Missed Revenue Opportunities
Missed Revenue Opportunities
The flat discount capped AOV growth — customers got their 40% and stopped spending.
The flat discount capped AOV growth — customers got their 40% and stopped spending.
The flat discount capped AOV growth — customers got their 40% and stopped spending.
Underutilised Promotions Budget
Underutilised Promotions Budget
Underutilised Promotions Budget
Marketing was giving away margin without extracting maximum cart value in return.
Marketing was giving away margin without extracting maximum cart value in return.
Marketing was giving away margin without extracting maximum cart value in return.
Lack of Measurable Behavioral Shifts
Lack of Measurable Behavioral Shifts
Lack of Measurable Behavioral Shifts
With no progression model, it was hard to track how incentives actually influenced purchase behaviour.
With no progression model, it was hard to track how incentives actually influenced purchase behaviour.
With no progression model, it was hard to track how incentives actually influenced purchase behaviour.
Linking insight to action:
Linking insight to action:
Linking insight to action:
By combining behavioural segmentation with these problems, it became clear:
We didn’t need to increase the discount; we needed to structure it in milestones based on cart value to nudge each user type toward higher spend.
By combining behavioural segmentation with these problems, it became clear:
We didn’t need to increase the discount; we needed to structure it in milestones based on cart value to nudge each user type toward higher spend.
By combining behavioural segmentation with these problems, it became clear:
We didn’t need to increase the discount; we needed to structure it in milestones based on cart value to nudge each user type toward higher spend.
Impact Highlights
Impact Highlights
Impact at a Glance
Impact at a Glance
8%
8%
AOV Increase
AOV Increase
67%
67%
of users reached at least the first milestone
of users reached at least the first milestone
Average of 2 products per order.
Average of 2 products per order.
40% +
40% +
users progressed to the second tier
users progressed to the second tier
Average of 3 products per order.
Average of 3 products per order.
5% +
5% +
users progressed to the third tier
users progressed to the third tier
Average of 6 products per order.
Average of 6 products per order.
9%
9%
lift in completed purchases vs. flat discount group
lift in completed purchases vs. flat discount group
Reward system felt part of the shopping experience
Reward system felt part of the shopping experience
8%
AOV Increase
67%
of users reached at least the first milestone
Average of 2 products per order.
40% +
users progressed to the second tier
Average of 3 products per order.
5% +
users progressed to the third tier
Average of 6 products per order.
9%
lift in completed purchases vs. flat discount group
Reward system felt part of the shopping experience
Challenge
Challenge
The business offered a straightforward 40% discount upfront to all customers, no matter how much they purchased. While attractive, it didn’t encourage higher spending. Customers would buy just enough to get the discount, leaving AOV growth untapped.
The business offered a straightforward 40% discount upfront to all customers, no matter how much they purchased. While attractive, it didn’t encourage higher spending. Customers would buy just enough to get the discount, leaving AOV growth untapped.
The business offered a straightforward 40% discount upfront to all customers, no matter how much they purchased. While attractive, it didn’t encourage higher spending. Customers would buy just enough to get the discount, leaving AOV growth untapped.
GOAL
GOAL
Find a way to increase AOV without increasing total discount cost, ideally motivating customers to reach higher cart values.
Find a way to increase AOV without increasing total discount cost, ideally motivating customers to reach higher cart values.
Find a way to increase AOV without increasing total discount cost, ideally motivating customers to reach higher cart values.
Hypothesis
Hypothesis
Instead of giving away the full 40% upfront, break the discount into cart value milestones.
This could:
Create a sense of progress (“Only ₹X away from the next discount tier!”)
Encourage customers to keep adding items to unlock the next tier
Increase order totals while still capping maximum discount
Instead of giving away the full 40% upfront, break the discount into cart value milestones.
This could:
Create a sense of progress (“Only ₹X away from the next discount tier!”)
Encourage customers to keep adding items to unlock the next tier
Increase order totals while still capping maximum discount
Instead of giving away the full 40% upfront, break the discount into cart value milestones.
This could:
Create a sense of progress (“Only ₹X away from the next discount tier!”)
Encourage customers to keep adding items to unlock the next tier
Increase order totals while still capping maximum discount
Design Process
Design Process
Research
Research
Research
Analyzed order data and found most customers stopped spending just above the free shipping or discount threshold.
Reviewed competitor campaigns using spend-based rewards.
Studied psychological triggers (goal gradient effect, gamification, perceived value boosts).
Analyzed order data and found most customers stopped spending just above the free shipping or discount threshold.
Reviewed competitor campaigns using spend-based rewards.
Studied psychological triggers (goal gradient effect, gamification, perceived value boosts).
Analyzed order data and found most customers stopped spending just above the free shipping or discount threshold.
Reviewed competitor campaigns using spend-based rewards.
Studied psychological triggers (goal gradient effect, gamification, perceived value boosts).
Insight gained:
Flat discounts made customers stop buying earlier. Progressive spend goals could keep them adding more to their cart as long as the next target felt achievable.
Flat discounts made customers stop buying earlier. Progressive spend goals could keep them adding more to their cart as long as the next target felt achievable.
Concept
Concept
Concept
The idea was simple: make the discount feel earned, not given.
We replaced the flat discount with a progressive, spend-based milestone model:
Milestone 1: Spend ₹A → 20% off
Milestone 2: Spend ₹B → 30% off
Milestone 3: Spend ₹C+ → 40% off (max to protect margins)
This created a clear, visible path for customers to “level up” their savings while increasing AOV.
The idea was simple: make the discount feel earned, not given.
We replaced the flat discount with a progressive, spend-based milestone model:
Milestone 1: Spend ₹A → 20% off
Milestone 2: Spend ₹B → 30% off
Milestone 3: Spend ₹C+ → 40% off (max to protect margins)
This created a clear, visible path for customers to “level up” their savings while increasing AOV.
The idea was simple: make the discount feel earned, not given.
We replaced the flat discount with a progressive, spend-based milestone model:
Milestone 1: Spend ₹A → 20% off
Milestone 2: Spend ₹B → 30% off
Milestone 3: Spend ₹C+ → 40% off (max to protect margins)
This created a clear, visible path for customers to “level up” their savings while increasing AOV.
Design
Design
Design
If customers couldn’t see their progress, they wouldn’t chase the next milestone.
We designed:
A dynamic progress bar in PLP, PDP & Cart.
Smart, real-time copy: “Add ₹XX more to get 30% off!”
Mobile-first layout where milestones were always visible without scrolling.
Every element turned the offer from a static coupon into a mini game.
If customers couldn’t see their progress, they wouldn’t chase the next milestone.
We designed:
A dynamic progress bar in PLP, PDP & Cart.
Smart, real-time copy: “Add ₹XX more to get 30% off!”
Mobile-first layout where milestones were always visible without scrolling.
Every element turned the offer from a static coupon into a mini game.
If customers couldn’t see their progress, they wouldn’t chase the next milestone.
We designed:
A dynamic progress bar in PLP, PDP & Cart.
Smart, real-time copy: “Add ₹XX more to get 30% off!”
Mobile-first layout where milestones were always visible without scrolling.
Every element turned the offer from a static coupon into a mini game.
Experimentation
Experimentation
Experimentation
"Ideas are only as good as the data that proves them."
We ran an A/B test:
Group A: Flat 40% discount upfront.
Group B: Progressive, spend-based milestones.
We tracked AOV, milestone achievement rates, and total revenue. Early on, Group B users consistently added more items to reach the next tier, confirming the model worked.
"Ideas are only as good as the data that proves them."
We ran an A/B test:
Group A: Flat 40% discount upfront.
Group B: Progressive, spend-based milestones.
We tracked AOV, milestone achievement rates, and total revenue. Early on, Group B users consistently added more items to reach the next tier, confirming the model worked.
"Ideas are only as good as the data that proves them."
We ran an A/B test:
Group A: Flat 40% discount upfront.
Group B: Progressive, spend-based milestones.
We tracked AOV, milestone achievement rates, and total revenue. Early on, Group B users consistently added more items to reach the next tier, confirming the model worked.
Insight gained:
Gamifying the discount journey not only lifted AOV but also increased shopping time per session, a secondary benefit we hadn’t initially targeted.
Gamifying the discount journey not only lifted AOV but also increased shopping time per session, a secondary benefit we hadn’t initially targeted.
Seamless Shopping, Bigger Rewards
Seamless Shopping,
Bigger Rewards
Seamless Shopping,
Bigger Rewards
We designed a modular set of UI components placed at key shopping moments, from homepage education to browsing stage motivation to checkout stage payoff. Each interaction reinforced reward progress without breaking the user’s flow, staying fully brand consistent and performance light.
We designed a modular set of UI components placed at key shopping moments, from homepage education to browsing stage motivation to checkout stage payoff. Each interaction reinforced reward progress without breaking the user’s flow, staying fully brand consistent and performance light.
✦ Video Card
Introduce Rewards Without Feeling Like an Ad
Introduce Rewards Without Feeling Like an Ad
Introduce Rewards Without Feeling Like an Ad
A motion widget at the top of the homepage softly loops a video explaining the “Buy More, Save More” offer.
Unlike banners that users ignore, this blends into the native feed and sparks curiosity while building awareness early.
A motion widget at the top of the homepage softly loops a video explaining the “Buy More, Save More” offer.
Unlike banners that users ignore, this blends into the native feed and sparks curiosity while building awareness early.
A motion widget at the top of the homepage softly loops a video explaining the “Buy More, Save More” offer.
Unlike banners that users ignore, this blends into the native feed and sparks curiosity while building awareness early.
✦ Product Listing
Motivate While
They Browse
Motivate While
They Browse
Motivate While
They Browse
A minimal strip stays pinned at the bottom of the product listing page, showing how close users are to unlocking rewards. Visible during product comparisons, it gently nudges them to add more items without breaking their browsing rhythm.
A minimal strip stays pinned at the bottom of the product listing page, showing how close users are to unlocking rewards. Visible during product comparisons, it gently nudges them to add more items without breaking their browsing rhythm.
A minimal strip stays pinned at the bottom of the product listing page, showing how close users are to unlocking rewards. Visible during product comparisons, it gently nudges them to add more items without breaking their browsing rhythm.
✦ Product Detail
Reward Progress Right
Where They Decide
Reward Progress Right
Where They Decide
Reward Progress Right
Where They Decide
On product detail pages, the progress strip sits beside the “Add to Bag” button and stays sticky. It connects the reward message directly to the buying action, making purchase decisions smarter and smoother.
On product detail pages, the progress strip sits beside the “Add to Bag” button and stays sticky. It connects the reward message directly to the buying action, making purchase decisions smarter and smoother.
On product detail pages, the progress strip sits beside the “Add to Bag” button and stays sticky. It connects the reward message directly to the buying action, making purchase decisions smarter and smoother.
✦ Cart
One Last Push
To Checkout
One Last Push
To Checkout
One Last Push
To Checkout
In the cart, the strip docks above the “Pay Now” button with real-time progress updates. When users hit the threshold, a subtle animation celebrates their achievement — adding payoff without overhyping.
In the cart, the strip docks above the “Pay Now” button with real-time progress updates. When users hit the threshold, a subtle animation celebrates their achievement — adding payoff without overhyping.
In the cart, the strip docks above the “Pay Now” button with real-time progress updates. When users hit the threshold, a subtle animation celebrates their achievement — adding payoff without overhyping.
✦ Results
Turning Browsers
into Big Spenders
Turning Browsers
into Big Spenders
Turning Browsers
into Big Spenders
+8% AOV increase compared to the flat discount group.
67% of users reached at least the first milestone; 40%+ progressed to the second tier.
+9% lift in completed purchases vs. flat discount group.
Increased cart value without harming checkout completion rates.
The reward system felt part of the shopping experience, boosting brand perception
+8% AOV increase compared to the flat discount group.
67% of users reached at least the first milestone; 40%+ progressed to the second tier.
+9% lift in completed purchases vs. flat discount group.
Increased cart value without harming checkout completion rates.
The reward system felt part of the shopping experience, boosting brand perception
+8% AOV increase compared to the flat discount group.
67% of users reached at least the first milestone; 40%+ progressed to the second tier.
+9% lift in completed purchases vs. flat discount group.
Increased cart value without harming checkout completion rates.
The reward system felt part of the shopping experience, boosting brand perception
Damn! That's a lotta scrolling
Damn! That's a lotta scrolling
Damn! That's a lotta scrolling
That's the end of this project.
That's the end of this project.
