How to Best Measure Promotional Effectiveness: Everything You Need to Know for Calculating Promotion ROI

In this promotional effectiveness series, consumer goods expert Gawel Adamek discusses the benefits and challenges of building a digital platform for promotion management. In part 1, Gawel introduces the main effects that influence promotion ROI.

Today it seems like promotions are everywhere, and running constantly. Visit your local mall and you will likely be overwhelmed by the “% off” signs and abundance of special offers. It’s a wonder that anyone is willing to pay full price anymore. This bombardment is changing the behavior of consumers, who are becoming all too used to buying most of their everyday need products on promotions only. As a consequence, companies are starting to experience increasing adverse effects surrounding their campaigns. Promotional effectiveness needs to be brought under the microscope, with a critical look at whether these campaigns are actually bringing in the desired results.

When I ask clients about…