Optimize discount policy

Optimize one aggregate discount option per commercial segment against scenario purchase, retention, service-cost and contribution economics; enforce expected discount spend, delivery capacity, cross-segment rate-gap and downside gates, compare with an explicit zero-discount baseline, and disclose exact or heuristic search.

What it's for

Finds discounts that create contribution rather than vanity volume, while limiting margin tail loss, delivery overload and unjustified cross-segment dispersion.

What you give it

Inputs split into evidence read from your connected systems, calibration your team owns, and numerical controls that affect precision but never the result's meaning.

Field Type Role Required
discount_options array of objects (6 fields) ≥ 1 item Evidence Yes
max_detail_rows integer ≥ 1, ≤ 500 Numerical control Optional
maximum_cvar_contribution_loss_vs_baseline number ≥ 0 Your calibration Optional
maximum_discount_rate_gap number ≥ 0, ≤ 1 Your calibration Optional
maximum_exact_states integer ≥ 2, ≤ 1000000 Numerical control Optional
maximum_expected_discount_spend number ≥ 0 Your calibration Yes
maximum_expected_units number ≥ 0 Your calibration Yes
minimum_expected_contribution number Your calibration Optional
risk_aversion number ≥ 0 Your calibration Optional
scenarios array of objects (2 fields) Evidence Yes
segments array of objects (4 fields) ≥ 1 item Evidence Yes
tail_probability number > 0, ≤ 0.5 Your calibration Optional

Each discount_options record

Field Type Required
discount_rate number (≥ 0, ≤ 1) Yes
id string (non-empty) Yes
incremental_retained_units_scenarios array of number (≥ 2 items) Yes
incremental_service_cost_scenarios array of number (≥ 2 items) Yes
purchase_probability_scenarios array of number (≥ 2 items) Yes
segment_id string (non-empty) Yes
Example input
{
  "discount_options": [
    {
      "discount_rate": 0,
      "id": "growth-list",
      "incremental_retained_units_scenarios": [
        0,
        0
      ],
      "incremental_service_cost_scenarios": [
        0,
        0
      ],
      "purchase_probability_scenarios": [
        0.2,
        0.25
      ],
      "segment_id": "growth"
    },
    {
      "discount_rate": 0.1,
      "id": "growth-ten",
      "incremental_retained_units_scenarios": [
        1,
        2
      ],
      "incremental_service_cost_scenarios": [
        20,
        30
      ],
      "purchase_probability_scenarios": [
        0.25,
        0.35
      ],
      "segment_id": "growth"
    }
  ],
  "maximum_expected_discount_spend": 500,
  "maximum_expected_units": 50,
  "scenarios": [
    {
      "id": "base",
      "probability": 0.7
    },

Truncated for display — the full payload is 58 lines.

What you get back

This is the actual output of running the example above — computed by the same function the platform calls, not an illustration.

Example output
{
  "decision": "deploy_governed_aggregate_discount_policy",
  "failed_gates": [],
  "guardrails": [
    "Purchase, retention, and service-cost scenarios must come from randomized, quasi-experimental, or explicitly assumption-labeled evidence; observed correlation or a fitted elasticity is not automatically a causal discount response.",
    "Segments must be aggregate, commercially legitimate, prospectively defined, and reviewed for legal and ethical pricing constraints; protected traits, nationality, inferred vulnerability, or named-person behavior are prohibited.",
    "Maximum discount-gap, spend, capacity, contribution, and tail gates supplement rather than replace legal, tax, revenue-recognition, channel-conflict, brand, customer-trust, and approval controls.",
    "The selected policy is not authority to change prices, target individuals, discriminate, manipulate customers, or deploy an untested causal policy; heuristic mode has no global certificate."
  ],
  "method": "scenario_constrained_aggregate_discount_policy_v1",
  "scenario_diagnostics": [
    {
      "baseline_contribution": 1500,
      "delivered_units": 26,
      "discount_spend": 260,
      "policy_contribution": 1670,
      "probability": 0.7,
      "scenario_id": "base"
    },
    {
      "baseline_contribution": 1875,
      "delivered_units": 37,
      "discount_spend": 370,
      "policy_contribution": 2375,
      "probability": 0.3,
      "scenario_id": "upside"
    }
  ],
  "selected_policy": [
    {
      "discount_rate": 0.1,
      "option_id": "growth-ten",
      "segment_id": "growth"
    }
  ],
  "solver": {
    "evaluated_policy_count": 2,
    "global_optimality_certificate": true,
    "maximum_exact_states": 100000,
    "method": "exact_multiple_choice_enumeration",
    "nominal_policy_count": 2
  },
  "summary": {
    "cvar_contribution_loss_vs_baseline": 0,

Truncated for display — the full payload is 58 lines.

How it works

Constrained optimization — Pick the best feasible option under real limits — budget, headcount, dependencies, capacity — rather than ranking a list and hoping it fits.

  1. 1 Define aggregate commercial segments, a unique zero-discount baseline and candidate rate for each segment, coherent purchase/retention/service-cost scenarios, contribution economics and operational constraints.
  2. 2 Evaluate feasible multiple-choice policies, calculate scenario contribution, units and discount spend, and penalize CVaR contribution loss relative to the feasible baseline.
  3. 3 Choose the risk-adjusted contribution-maximizing policy, apply contribution and tail gates, and return segment choices and adverse scenario diagnostics with solver certainty.

Before you trust it

Every tool in the catalog ships with the conditions under which its answer is meaningful — and the conditions under which it should abstain instead of guessing.

Assumptions & guardrails

  • Objectives use commensurable locally governed value units, constraints reflect real feasibility, and uncertainty covers plausible adverse inputs.
  • Options are offered to governed aggregate commercial segments rather than inferred protected groups or named people; demand response is causally credible or conservatively scenario-bound; list price, variable/service costs, retention and capacity share one scope and horizon.
  • The recommendation is optimal only for its stated objective, feasible set, evidence, and solver guarantee; it is not a universal management optimum.
  • Association is not discount elasticity; individual or protected-trait targeting is outside the function; heuristic output has no global certificate and never authorizes discriminatory pricing or automatic customer action.

Minimum evidence

  • segments: at least 1 rows/items
  • discount_options: at least 1 rows/items
  • scenarios: required and organization-defined
  • maximum_expected_discount_spend: required and organization-defined
  • maximum_expected_units: required and organization-defined

How to validate it

Backtest the chosen action against simple feasible baselines on held-out scenarios, sweep costs/constraints/risk tolerance, and require constraint feasibility under adverse inputs.

Calibrating it to your org

Same for everyone

The mathematical kernel, validation rules, method version, and JSON output semantics are organization-independent; no tenant-trained coefficients or company benchmark is embedded in the function.

Specific to you

  • point-in-time experiment or transportability-qualified demand-response evidence joined to aggregate eligibility, unit economics, fulfillment capacity and downstream retention without post-treatment leakage
  • lawful aggregate segmentation and protected-trait exclusion, price/cost/currency/tax/horizon, causal evidence standard, scenario law, discount budget, unit capacity, minimum contribution, rate-gap/CVaR/tail/risk gates, solver boundary and human pricing authority

Calibration workflow

  1. 1 Define the management decision, target outcome, aggregate unit, privacy boundary, cadence, and prediction/intervention horizon for this organization.
  2. 2 Build a tenant-scoped historical cohort using only information available before each prediction or decision; preserve zero periods, censoring, assignment probabilities, and unresolved outcomes when the method requires them.
  3. 3 Estimate statistical parameters on training history, but obtain costs, utilities, risk tolerance, practical-effect thresholds, capacity, and policy constraints from accountable decision owners.
  4. 4 Validate on later time windows or held-out aggregate units at the deployment grain, against a simple baseline and the function-specific validation strategy.
  5. 5 Deploy only if the returned decision clears evidence, overlap, calibration, robustness, and guardrail checks; warning, unsupported, schema-gap, and fallback decisions are abstentions.
  6. 6 Monitor realized outcomes, data drift, coverage, and decision regret; recalibrate at a governed cadence or after a detected regime/definition change, never merely because a stakeholder dislikes the result.

Call it from your AI

You don't wire up 388 tools in your MCP client. The GitRevio MCP server exposes 18 tools, three of which let an agent search the catalog, read a tool's schema, and run it — so the assistant finds this one on its own.

gitrevio_capabilities_search
  { "q": "optimize one aggregate discount option per" }
  → finds "optimize_discount_policy"

gitrevio_capability_describe
  { "capability_id": "optimize_discount_policy" }
  → returns the input schema and agent guidance shown on this page

gitrevio_capability_run
  { "capability_id": "optimize_discount_policy", "arguments": { ... } }
  → returns the result shown above

Works in Claude Desktop, Claude Code, Cursor, Cline, Continue.dev, Goose and Aider. See the MCP server.

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