Promotional Campaign Effectiveness Analysis and Solutions
Designing a promotional campaign to generate incremental lift in a business is hard enough, but it is even harder to analyze the business results to know if the volume and margin goals were obtained. For example, in order to attract new customers and bring back former customers, you might run a promotion on a certain product line. You do indeed sell those products to new and former customers, so that means the promotion was a success, right?
Consider the Following:
- Did you consider whether those new customers bought anything other than the promotional product?
- Did you truly win back those former customers, or was the promotional purchase a one-off?
- Did the promotion lead to cannibalization of sales of higher-margin products among your existing customers?