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 |
{
"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.
{
"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 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 Evaluate feasible multiple-choice policies, calculate scenario contribution, units and discount spend, and penalize CVaR contribution loss relative to the feasible baseline.
- 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 Define the management decision, target outcome, aggregate unit, privacy boundary, cadence, and prediction/intervention horizon for this organization.
- 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 Estimate statistical parameters on training history, but obtain costs, utilities, risk tolerance, practical-effect thresholds, capacity, and policy constraints from accountable decision owners.
- 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 Deploy only if the returned decision clears evidence, overlap, calibration, robustness, and guardrail checks; warning, unsupported, schema-gap, and fallback decisions are abstentions.
- 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.
Related tools
Calculate procurement negotiation range
Calculate an uncertainty-aware procurement bargaining zone from independently governed buyer and supplier BATNA economics; protect both reservation prices at explicit confidence levels, derive a bargaining-weight target, quantify ZOPA probability and tail overpayment, and abstain when evidence cannot support an overlap.
Optimize license seat portfolio
Choose integer license packs across aggregate seat pools under coherent demand, on-demand price and capacity scenarios; explicitly price unused and unserved seats, enforce budget, coverage and CVaR gates, and disclose exact versus deterministic supported-set search.
Audit recurring revenue bridge integrity
Audit recurring revenue as a continuous stock/flow ledger: reconcile opening revenue through new, expansion, reactivation, contraction, churn, FX and acquisition/divestiture movements to closing revenue; require each next opening to equal the prior close; and recompute GRR and NRR on an organic existing-customer perimeter that cannot be inflated by new business, reactivation, FX or M&A.
Calculate churn prevention break even
Calculate the absolute churn reduction an intervention must cause to break even, then test aligned baseline/treated scenarios against probability-of-positive-value and portfolio CVaR gates.
Estimate cannibalization adjusted feature value
Estimate feature value after posterior cannibalization of legacy contribution, using aligned adoption scenarios, beta-binomial substitution uncertainty, and value plus substitution-risk gates.
Estimate feature incremental value
Estimate rollout value from segment-level treated/control outcomes with beta-binomial uplift posteriors, finance-owned contribution economics, and a probability-of-positive-value gate.