Trade promotion optimization is sometimes confused with trade promotion management and is often used interchangeably. Trade promotion Management involves implementation of trade promotion, tracking and reconciliation of the promotion capital with sales dollars while Trade Promotion Optimization involves maximizing the ROI objective through budgetary constraints. This post will discuss different elements of Trade Promotion Optimization.
Elements of Trade Promotion Optimization
Effective Trade Promotion Optimization requires:
1. Intelligence from Sales Data
Most businesses would already be collecting detailed sales data from customer transactions. But for effective trade promotion optimization, it is necessary that they gain insights into transaction data, slicing and dicing the data on any dimension: geography, channel, product, customer segment.
2. Effectiveness Measurement
Businesses should measure effectiveness of trade promotions so that they can monitor the lift in sales or engagement or whatever metric depending on the stated objective of the promotion. Often times, this requires integrating transactional data, social media data, web server logs, sensor data. Once you have the data, baseline all the metrics (such as Sales, Spend etc), so you could accurately measure the lift.
Just as any optimization, Trade Promotion Optimization too, requires visibility into data, both at the aggregate as well as drill-down levels. This means that Marketing teams need access to the right data intelligence tool that can provide interactive data visualizations. In addition to making it easy for users to slice and dice the data on multiple dimensions, the tool should also support adhoc queries, so users can dissect any data point on the fly without requiring IT support. A superior user experience of the tool will go a long way in extracting the real value of the data as these users are non-technical business users. A self-service BI tool that requires minimal learning for new users can keep the Total Cost of Ownership attractively low.
Vizard, Infruid’s patent-pending Self-service BI tool, can empower your Sales and Marketing team with all the data insights they need to make the right data-driven decisions. With an intuitive search interface that lets users ask questions in simple English, Vizard requires absolutely no learning for new users. Go-live in less than a day, why wait for weeks for your IT team to roll out new data analytics dashboards, when you can build your own BI dashboards in less than 5 minutes?
Infruid Labs is a Business Analytics and Data Visualization solutions company. Vizard is Infruid’s patent-pending and award-winning Big Data Visualization platform. Vizard helps business users ask questions in simple English and answers back with interactive charts. Ask for a demo to know more.