Promotion Evaluation
Maximise net impact and control promotional switching
Most promotions only add a very limited amount of sales, when all side effects are considered.
With Accuris, measure and control these side effects for each promotion and each pack specifically.
Accuris turns promotional switching into KPIs you can actively manage.
KPIs you can manage: cannibalisation, brand switching, retail switching
All things considered, promotions mainly cause back and forth switching and only rarely generate long term sales increases. Unlike other solutions, Accuris turns promotion switching into a manageable task. Set goals for cannibalisation, retail switching and brand switching. Use Accuris to identify the specific mechanics and packs that are needed to reach your goals.
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Which mechanics and packs drive category expansion?
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Which events effectively make shoppers upgrade to a higher value point?
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Where to cut the loss making-tail of promotions?
Promotions usually generate a lot of switching. Accuris Source of Business® measures the negative and positive impact of each promotion.
From project to process
CG companies work with Accuris to quantify exactly how cannibalisation, subsidisation and other dynamic effects of promotions are affecting the return on their promo investment. Then, they use Accuris to support their pre- and post-evaluation process and gradually reduce the negative effects of promotions and improve ROI.
The result is a recurring process where all promotions are evaluated and optimised for net revenue impact.
Accuris provides:
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Software tools to evaluate and optimise
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Monthly workshops with customer and finance teams
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The industry-leading Source of Business® methodology
Key areas of a TPM process supported by Accuris
Gross and net impact
To look at promotions with a comprehensive approach you must consider the negative elements of promoting and how these impact your volume, value and profitability. Incremental volume gained at a gross level is often dramatically decreased when taking into account the side effects of promotions.
Thanks to its unique Bayesian approach, Accuris is the only solution on the market that can split category, brand and retail switching effects for each promotion individually. Other approaches may report general trends, but are not promotion specific. So you cannot use their metrics to manage category expansion, or minimise cannibalisation or to optimise switching.
Pssst. they won't tell you.....!
Full service
Promotion evaluation involves a lot of time and effort, much of which related to data handling. With Accuris, you have the option to completely outsource the data, modelling and reporting process, so your staff can focus entirely on creating more effective programs and strategies.
Typical tasks you may consider outsourcing are:
Data handling
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integration of various datasets: scanning data, promotion calendars, financial data, competitor data
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data cleaning: removing or correcting errors and inconsistencies
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harmonisation: maintaining the master data ensuring all product labels, time labels, metrics etc. correctly connect to one another
Modelling
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calculation of accurate baselines, reflecting category, brand and retailer trends, as well as seasonality, competitive promotion activity and other factors impacting sales
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calculation of promotional drivers: allocating incremental sales to the promotion or price mechanism that caused it
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decomposition of the promotional uplift (Source of Business®): determining the origin of incremental sales, such as own-portfolio cannibalisation, competitive steal, category expansion or retail switching
Reporting
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standard reporting of promotional metrics using industry templates
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custom-made reporting
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integration with your reporting systems
Why it matters
All CG companies we talk to have there promotion evaluation initiatives. However, very few get to the bottom of it and maintain a robust, recurring effort of optimisation. And old habbits return.
With Accuris you have the right combination of workshops, data handling and advanced modelling to seriously address this multi-million issue.
Your competitive advantage
Unlike any other approach, Accuris allows you to identify the mechanics and promotions that reduce cannibalisation, increase traffic to store and grow the category. It is the only methodology that is mechanic, pack and promotion-specific. No generalisations. And that gives you the precision and the credibility to blow away your competitors in your negotiations with the trade.
Thomas Bayes
1701-1761
A core statistical principle used in the Accuris methodology is Bayes' theorem. Developed by Thomas Bayes in the 18th century, it only recently received widespread recognition.
Interestingly, Thomas Bayes was laid to rest at Bunhill Fields cemetary, just minutes walk from Accuris' London office.
