AICompound Value

Targeted Discounting With Loomi AI

Increase Conversion Rates With Margin-Optimized Search and Targeted Discounting

Stop over-discounting and increase your gross margin by 8-15% by identifying who actually needs an incentive to convert. This Loomi AI-powered use case lets you identify customer price sensitivity and predict CLTV in real time, then personalize the search experience and deliver the right offers to boost conversions.

Channel

Products:

Autonomous Search Marketing Automation

Industries:

Ecommerce Retail Travel & Transporation

Goal:

Acquire Customers

Metrics:

Average Order Value Revenue Revenue Per Visitor

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Why Marketers Turn to Bloomreach for Smart Pricing Strategies

Marketers often rely on broad discounting strategies to drive conversions because they otherwise don’t know which customers actually need an incentive to purchase. However, this leads to lost margin due to unnecessary discounts, and it gives luxury and premium buyers the wrong experience.

Loomi AI connects customer data and AI-powered predictions directly into search ranking and merchandising logic — in real time. This allows marketers to accurately predict customer value and price sensitivity, which translates into tailored campaigns and targeted offers that boost conversions while still protecting margins.

Get Inspired: Activate Smart Pricing Strategies Effortlessly

Margin Optimization

AI-Powered Search and Discount Personalization

Protect margins while maintaining conversions by personalizing search results and promotional offers based on customer price sensitivity and predicted lifetime value. Loomi AI automatically segments customers into dynamic groups:

Luxury shoppers (high AOV, low discount usage, high predicted CLTV)
Discount-sensitive shoppers (high promo usage, purchases during sales)
Value seekers (mixed behavior)

Then, it activates these segments in real time across search, category pages, and promotional messaging. Premium shoppers see high-margin products boosted to the top of search results with deep discounts suppressed, while price-sensitive customers see sale items and strong value offers prioritized.

The system uses product margin attributes from your catalog combined with live customer behavior to optimize every interaction, enabling segment-specific weblayers that display promotions only when needed. This approach can increase full-price conversions by 15-25% among luxury segments, while reducing unnecessary discounting by 20-30%.

Orchestrating targeted discounting and margin-optimized search using Loomi AI predictions, AutoSegments, and segmented search rules enables brands to increase gross margin by 8-15% on segmented traffic while maintaining or improving conversion rates. New York Pizza used this approach to identify discount-sensitive customers and target accordingly, achieving an 89% increase in conversion rates while driving 2% revenue uplift.

How It Works

Loomi AI generates dynamic segments based on your audience’s customer lifetime value and price sensitivity, which is predicted based on past behavior.

Segments can personalize recommendations and category merchandising, ensuring margin-aware personalization across the entire on-site experience. For example:

Luxury shoppers (high AOV, low discount usage, high predicted CLTV) see high-margin and premium items boosted to the top, with deep discounts suppressed.
Discount-sensitive shoppers (high promotion usage, lower predicted CLTV) see sales items and strong value offers are prioritized.
Value seekers (mid-tier AOV and discount usage, mixed behavior) get a blended experience based on margin and promotional sensitivity.

The discount strategy is further refined based on on-site customer behavior signals, so that promotions are only triggered when customers demonstrate discount sensitivity or hesitation.

Target Audience for AI-Driven Margin Optimization

Brands with a large catalog of products with a range of prices, travel brands with price-sensitive customers, and retail/beauty/fashion brands with a mix of premium shoppers and discount seekers.