New Feature: Unlock Higher AOV and Customer Loyalty with Stamped's Discount Stacking

Introduction

The more competitive ecommerce becomes, the harder it is to increase average order value while maintaining customer satisfaction—which is why discount stacking might be the answer for your brand.

Discount stacking is a powerful strategy that's transforming how brands approach promotional campaigns and customer rewards. It allows customers to apply multiple promotional offers simultaneously, rather than forcing them to choose between discounts.

Stamped's new discount stacking feature gives Shopify merchants the ability to create a more flexible and rewarding shopping experience that drives meaningful business results.

What is discount stacking?

With discount stacking, customers can now combine product discounts, order discounts, and free shipping offers within Shopify's framework, giving them more value while encouraging larger purchases. The feature integrates seamlessly with both loyalty point redemption and VIP tier benefits, creating a comprehensive rewards ecosystem that maximizes customer engagement.

The mechanics are straightforward yet powerful. When enabled, the feature allows up to five product and order discounts plus one shipping discount per order, following Shopify's native discount combination rules. Product discounts apply first, followed by order discounts calculated on the adjusted subtotal. If multiple percentage-based order discounts are applied, Shopify calculates both based on the original subtotal to ensure fair application.

For example, if a customer has a discount that provides 10% off the order, and a second discount code that provides 20% off the order, and the order subtotal is $100, then the total after discounts is $70 or 30% off the original subtotal.

The business case for discount stacking

The global online shopping cart abandonment rate for 2024 stands at 70.19%, representing billions in lost revenue across all industries. Even more telling, 75% of Americans who abandon their online shopping carts do so because of cost and lack of coupons, while 48% cite high extra costs like shipping fees and taxes as deal-breakers. These statistics reveal a fundamental mismatch between what customers are willing to pay and what brands traditionally offer through single-discount limitations.

Discount stacking directly addresses these abandonment triggers by maximizing the perceived and actual value customers receive. When shoppers can combine loyalty point redemptions with free shipping offers and product discounts, they're experiencing the very cost relief that statistics show they're seeking. This approach transforms the checkout experience into an opportunity for customers to feel smart about their purchasing decisions.

Additionally, when customers can stack multiple forms of savings, they develop a sense of partnership with the brand rather than feeling like they're in a negotiation for the best deal. This shift in relationship dynamics creates stronger emotional connections that translate into repeat purchases and higher lifetime value, as customers begin to view the brand as an ally in maximizing their purchasing power rather than a barrier to affordable shopping.

Strategic applications for lifecycle marketers

Discount stacking opens new possibilities for sophisticated campaign strategies that previously required complex workarounds or simply weren't feasible.

Lifecycle marketers can now design tiered promotional campaigns where customers receive increasingly valuable combinations of discounts as they progress through the customer journey. For example, new customers might stack a welcome discount with free shipping, while VIP members can combine tier-specific percentages with product-specific offers and loyalty point redemptions.

The feature particularly shines during high-stakes promotional periods like BFCM, where the ability to layer automatic holiday discounts with loyalty rewards can differentiate your brand from competitors. Customers can apply their accumulated loyalty points while still benefiting from seasonal promotions, creating a more inclusive and rewarding experience that doesn't penalize program participants.

Segmentation strategies become more nuanced with stacking capabilities. Marketers can create campaigns targeting specific customer behaviors—rewarding frequent purchasers with stackable product discounts while offering cart abandoners a combination of order discounts and free shipping. This level of personalization, backed by the tangible value of multiple savings, can significantly improve campaign performance metrics.

Implementation and best practices

The all-or-nothing configuration means that when discount stacking is enabled, all new discount types become stackable. This simplicity eliminates confusion but requires thoughtful planning around promotional strategies. Merchants should audit their existing discount structure before activation and consider how current campaigns might interact with the new stacking capabilities.

For optimal results, consider establishing clear guidelines for your customer service team about how stacked discounts work and what combinations are possible. Transparency in your promotional messaging about stacking capabilities can also become a competitive advantage, as customers increasingly seek out brands that offer maximum flexibility and value.

Measuring success and ROI

The impact of discount stacking extends beyond simple conversion metrics. Key performance indicators to monitor include average order value increases, customer lifetime value improvements, and loyalty program engagement rates. You can expect to see immediate lifts in cart completion rates as the friction of choosing between discounts disappears.

Long-term success metrics focus on retention and program stickiness. Customers who regularly use stacked discounts tend to develop stronger emotional connections to brands, viewing them as partners in maximizing value rather than adversaries hoarding savings opportunities. This shift in perception often translates to higher Net Promoter Scores and increased word-of-mouth referrals.

Stamped's discount stacking feature represents more than just a technical enhancement—it's a strategic tool for building deeper customer relationships while driving measurable business growth. As ecommerce continues to evolve toward more personalized and value-driven experiences, the ability to offer flexible, stackable rewards positions brands for sustained competitive advantage in an increasingly crowded marketplace.

Transform your discounting strategy with Stamped

At Stamped, we understand the nuances of implementing discount stacking within complex promotional ecosystems. Whether you're looking to revamp your existing loyalty program, launch new customer acquisition campaigns, or maximize revenue during peak shopping seasons, we can show you exactly how our discount stacking feature fits into your broader marketing strategy.

Book a demo with our team to see discount stacking in action and discover how it can transform your customer experience while driving the business metrics that matter most to your organization.