5 Benefits of TradeROI: The Tool Every Brand Needs
Trade promotions are one of the top marketing expenses for brands and an essential component of a successful sales strategy. You know temporary price reductions, in-store displays, and retail features get your products in front of customers—and hopefully into their shopping baskets. However, identifying results and retail compliance can be difficult tasks. Not to mention, its estimated that 60% of promotions don’t break even. This doesn’t need to be your reality.
You can use SPINS TradeROI to give you a view into your promotion results allowing you to monitor your efforts to optimize your strategy and drive positive ROIs.
Getting Started with TradeROI
SPINS TradeROI is a sophisticated BI tool, that allows you to track and evaluate your trade promotions. When using SPINS TradeROI, in order to get the most out of TradeROI, you want to provide as many details from your promotional plans as possible. The more comprehensive your inputs are, the richer your results will be. When beginning to use TradeROI, enter:
- The product groups you’ll be promoting
- Sales from your key accounts
- The calendar for your trade promotions and offers
- The costs of your trade promotions
- Product margins for each of the groups you’re promoting
Once your promotions run, you’ll be able to review their performance and explore insights in an online suite of visual dashboards. There you can begin to turn the data into actionable plans that will stretch your promotion dollars. Here’s how you can use TradeROI to improve your promotion strategy:
Analyze Post-event ROI
After every price reduction, in-store display and demo, and feature, you can look at the results. Did you experience an uptick in sales? If so, did the increased volume offset the cost of your expenses? Having the results of each promotion gives you an overview of their effectiveness and a foundation of data to dig into.
Once you’ve seen how each promotion performed, you can begin to learn what helped each promotion succeed or fail. What is the sweet spot for price reduction? Which demos gave the highest lift and which didn’t move the needle? TradeROI enables you to understand the performance, hypothesize, and test in order to improve your spending strategy over time.
As you work with retail partners, you want to ensure your promotions are running as planned, both in terms of pricing and timing. TradeROI helps you track the price levels your promotions ran at, allowing you to monitor whether they were at the price point you ized. You can also see when your promotions ran—or if they didn’t run at all. These insights keep you informed, help you learn about the success of your strategy, and enable better conversations with retailers.
Understand Your Competition
TradeROI provides you with insights on select competitors, giving you a better understanding of their performance within certain retailers. When you understand how your competition’s promotions are performing, you can begin to study your competition’s promotion strategy. When are they running promotions, which types are they running, and who do they appear to be targeting? As you learn more about their promotional strategy, you can optimize your brand’s strategy to stay competitive and innovative.
Update Key Account Calendars
Now that you’ve learned from your promotions, you can adapt your calendar to optimize performance in retailers. Your key accounts are retailers that carry your products and for whom you have performance data, and now your promotions can run at a time that is most beneficial to you and them. As you have ongoing conversations with these retailers, you can show how your promotions strategy brought in additional revenue.
Promotions are important for your brand and your relationship with retailers, plus, budgets need to go further than ever before. See how other brands are already finding success with TradeROI and reach out to us today to learn more how TradeROI can bring you a stronger promotional ROI.