Klaviyo published discounting data that reframes margin as the growth story.

Klaviyo published new discounting research with ProfitPeak saying low discounters grew GMV 12% year over year while deep discounters grew 6%, and that brands running 11 or more promotional events a year saw profit margins fall 11%. Source: Klaviyo, “Your Discount Strategy Is Making You Poorer — Here's the Data” (published May 20, 2026).

What happened: Klaviyo used its own dataset plus ProfitPeak analysis to argue that frequent discounting hurts both growth quality and margin, then positioned discount discipline as a measurable operating advantage.

Why it matters

This is a category-language move. Klaviyo is teaching merchants to ask whether another promotion creates real incremental demand or just subsidizes buyers who would have purchased anyway. That pushes the market toward margin-preserving retention and recovery tactics instead of reflexive couponing.

Tailored implication

Position TailoredTexting as a margin-rescue layer, not another discount trigger.
Target reply moments where a shopper needs reassurance, product clarity, shipping confidence, or urgency handling before the brand reaches for a code.
Report recovered orders, preserved margin, and discount avoided when conversations convert without another offer.

Bottom line

Klaviyo is telling merchants that constant discounting is a growth tax. Tailored should use that shift to sell a better alternative: close hesitant buyers with stronger conversations before the brand gives away more margin.