Why Relevance Beats Discounts in E-Commerce Personalization

Headerimage Why Relevance Beats Discount in E-Commerce

In e-commerce personalization, discounts often seem like the easiest way to drive conversions. They’re easy to launch, popular with shoppers, and simple to track. But while discounts might deliver short-term wins, they rarely build long-term value.

The most successful online shops know that what really drives sustainable growth is relevance – not rebates. When the right offer reaches the right person at the right time, the perceived value is often greater than any 10% off voucher.

From first click to checkout, relevant content builds trust, loyalty, and stronger customer experiences – without constantly reducing your margins. In this post, we’ll explore why relevance beats discounts in e-commerce personalization and how to implement it effectively.

Relevance Builds Value. Discounts Build Expectations.

Discounts are habit-forming – for brands and for customers. Once a customer has received 20% off their first order, they’ll think twice about paying full price again. And let’s face it: price cuts don’t make your products better – they just make them cheaper. And once users get used to discounts, they tend to wait for the next one instead of buying at full price.

Relevance, on the other hand, increases the perceived value of your offer. When the user sees something that aligns with their needs or preferences, they’re more likely to engage – even without a discount.

Example: A first-time visitor lands on a shop. Instead of a generic discount code, they see a curated selection based on season, product category, or location (like “Top picks for cold-weather running”). That’s value that feels personal – without changing the price.

With trbo: You can personalize by user behavior, location, or product interests – no discounts required. This leads to better margins and happier customers.

Discounts Cut Margins. Relevance Preserves Them.

Every time you offer a discount, you eat into your own profit. That might sound obvious, but it’s often overlooked in day-to-day campaign planning. Every campaign that relies on reduced prices cuts into your bottom line. And once it becomes standard practice, it’s hard to stop. The better question: What if you could achieve the same (or better) conversion rates without giving money away? That’s exactly what relevance enables.

Relevance allows you to boost engagement and conversions without giving away revenue. By tailoring the experience, you encourage users to convert based on interest – not incentives.

Example: Rather than offering 15% off a product category, a shop highlights bestsellers, shows product benefits by use case, or builds bundles based on previous browsing behavior.
This creates a stronger reason to buy – without lowering prices.

With trbo: You can use dynamic elements like social proof, urgency, or personalized bundles to drive decisions – while keeping your full product margin and enhanincing the experience with e-commerce personalization. Need proof? Check out Tretter’s results. They increased their conversion rate by 66% by displaying group motivation on product detail pages.

Relevance Wins on Mobile. Discounts Often Miss.

On mobile, attention is scarce. A discount code alone might not cut through the noise – especially if it’s hard to apply or requires extra steps. Relevance, on the other hand, offers a smoother path to conversion – and adapts naturally to mobile behavior.

Mobile users expect fast, seamless experiences. Personalized navigation, targeted banners, and pre-filled preferences reduce friction – and improve conversion.

Example: A returning mobile visitor sees a pre-filtered view of their last product category, paired with delivery info based on their region. No discounts needed – just a faster, more relevant path to purchase.

With trbo: You can tailor experiences based on device type, time of day, location, or past behavior – optimizing for every screen size and session length. An e-commerce personalization standard you should not miss to thrive. Reifen.de managed it easily with great results.

Relevance Personalizes the Journey. Discounts just the Price.

Discounts are usually one-time events. They end at checkout. Relevance is strategy, it starts at the first impression and continues across the user journey.

From homepage to product detail pages, from overlays to navigation – every touchpoint can be made more relevant. That creates smoother, smarter experiences that convert and build brand loyalty.

Example: A user looking for hiking gear sees relevant content from the first page: recommendations based on terrain, complementary items (like water bottles or backpacks), and clear benefits tied to outdoor use. The result? A journey that feels cohesive and tailored – even with standard pricing.

With trbo: You can personalize content across your entire site – from product pages and overlays to banners, search results, and more – all without needing a full redesign. E-commerce personalization is a powerful lever to optimize the customer journey and drive measurable results! Just look at beck-shop.de: by adding a “recently viewed products” section to the homepage, they created instant recognition and higher relevance for returning users. The outcome? +19% increase in conversion rate and a 2% uplift in user value!

Discounts Still Have Their Place. But Relevance Should Lead.

We’re not saying you should never discount. Relevance and discounts don’t have to be mutually exclusive. There are situations where a well-placed offer makes perfect sense – when it’s timely, targeted, and earned.

Examples include:

  • Re-engagement (e.g. cart abandonment or inactive users)
  • Loyalty programs where discounts are a reward, not an expectation
  • Exit-intent overlays for cart abandoners
  • To support seasonal campaigns or limited-time launches

But even in those cases, relevance makes all the difference. A targeted message (“Still thinking about this item?”) combined with a small incentive often works better than a blanket discount.

With trbo: You can set rules for when and how incentives appear within e-commerce personalization, so you’re not training users to wait for deals.

Final Thoughts: It’s Time to Rethink the Discount Default

Discounts might seem like the fastest way to boost conversions – but they come at a cost. Long term, they can lower margins, reduce brand value, and set the wrong expectations.

Relevance, on the other hand, delivers better experiences, drives smarter decisions, and builds loyalty. And with the right tools, it’s easier to implement than ever.

Stop giving away your margin. Start making every visit more relevant with easy implemented e-commerce personalization.

Curious to see what trbo can do for you? Our experts are here to help – book a quick intro call or request a personalized demo tailored to your business needs.

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