What are the best practices for measuring the impact of promotions on category performance?

A key indicator of promotion impact is sales lift, which measures the increase in sales during the promotion period. Track this alongside baseline sales to gauge effectiveness. Examine customer acquisition and retention rates to see if promotions attract new buyers and encourage repeat purchases. Utilize basket analysis to understand if promotions lead to higher average order values. Leverage customer feedback and satisfaction scores to assess the promotion’s reception. Incorporate real-time data dashboards to monitor these metrics continuously, allowing for timely adjustments and optimization of future promotional strategies based on these insights.

An interesting indicator to measure the efficiency of a promotion is to measure customer traffic, how the promotion contributed to increasing or decreasing customer traffic to the point of sale, whether online or physical. Another valuable piece of information is knowing that other products were influenced by the promotion. This data is provided by both the sell out and the CRM. The promotions not only benefit the product directly, but we seek to increase customer visits at the point of sale as well as the average ticket per visit.

Depois de avaliar qual indicador que será primordial para analise, colocar em pratica e trabalhar com os numeros ao seu favor, promover reuniões e comunicações com os times para acompanhamento do resultado.

To measure promotion impact on category performance, start by setting clear objectives. Utilize key performance indicators (KPIs) such as sales lift, incremental revenue, and ROI. Conduct A/B testing to compare promotional and non-promotional periods. Analyze data on customer acquisition, retention, and basket size. Utilize POS data, consumer surveys, and analytics tools for insights. Consider external factors like seasonality. Continuous monitoring and post-promotion analysis refine strategies for future campaigns, ensuring optimal performance.

Before launching any promotion, define your goals and measurement metrics. Determine if you aim to boost volume, revenue, margin, market share, or basket size. Consider attracting new customers, retaining existing ones, or cross-selling. Tailor metrics and KPIs accordingly, such as sales lift, incremental sales, return on investment, or customer retention rate, aligning them with your objectives for effective performance tracking.

The only way to understand true incrementality is a good treatment group, a well-matched control group, and good old fashioned difference-in-differences

To measure the effectiveness of the promotion is: 1. Have a sales history, even when they have carried out other types of promotions in the past 2. Apply the promotion in some "pilot" stores and choose the stores without the effect of the promotion. The KPI's to consider in addition to sales, sell thru of the product, is customer traffic and purchase affinity of other categories.

The implementation of a sales promotion can generate different effects such as: increase in sales volume, increase in market share, greater visibility in the POS, etc. It is important to carry out a post-mortem analysis to look at the results, but it is also important to set an objective before carrying out said action, in this way, we can validate that the resulting effect is really what we are looking to achieve.

Having clarity about promotion efficiency we can consider different objectives. 1. Increase sales without affecting the value of the category 2. Increase customer traffic to take them to another category 3. Launch of a new product Regarding the measurement of sales, the pieces sold are analyzed as well as sales to the same stores. We calculate the contribution to the category and can have a more complete view of the efficiency of the promotion

Es fundamental entender que el éxito no solo se mide por el incremento en ventas, sino también por cómo impacta la estrategia en el comportamiento del consumidor y en la rentabilidad de la categoría. En mi experiencia estas son mis recomendaciones clave: -Define objetivos claros y medibles -Apoyarse en datos y herramientas de análisis -Ajustar la estrategia según el aprendizaje Con esto no solo impulsan ventas inmediatas, sino que también construyen lealtad y posicionan a las marcas como opciones valiosas para el consumidor.