2/28/23, 10:00 PM

Promotions often drive sales but fail to maximise profitability due to challenges like cannibalisation, subsidisation, and inefficiencies. Accuris’ white paper highlights its proprietary Source of Business® methodology, which offers a comprehensive approach to evaluate and optimise the net impact of promotions. This framework addresses issues such as discounts given to loyal shoppers who would pay full price, unmeasured declines in other products, and low-margin items being heavily discounted.

The document reveals that over 94% of promotional sales do not generate incremental category revenues, while 35% of sales subsidise loyal shoppers unnecessarily. Accuris provides actionable strategies to counter these inefficiencies, including leveraging data analytics to identify promotional switching behaviours, encouraging category expansion through premiumisation and multibuy offers, and reducing predictability in promotional planning.

Through benchmark insights and tools, Accuris enables companies to minimise negative impacts while boosting activities that drive revenue growth, such as upgrading shopper behaviour and enhancing category value. The paper also explains how traditional P&L analyses often overlook the broader consequences of promotions, underlining the necessity of sophisticated methods for accurate ROI evaluation.

Dive into the full text to unlock critical insights and strategies that will empower your promotional efforts to deliver sustained, measurable profitability.