January 26, 2025 - The first decision point here is the type of volume you are using in the ROI calculation: shipments or retail sales (AKA POS, consumption). We recommend using retail sales as the volume basis so that the KPI reflects the effectiveness of the promotion offers to the shopper.

Gross Profit Per Unit is the amount of money made per unit after paying for the Cost of Goods Sold (COGS). To calculate the trade promotion ROI, you'll need the Gross Profit per Unit, as it helps in finding out the incremental profit generated by the promotion.

March 13, 2025 - Subtract your baseline sales from ... by the product's list price to find the incremental gross revenue. Divide your return (profit) by your investment (costs) to get your promotion ROI....

We created the Trade Promotion ROI Calculator to demonstrate the ROI and payback period for a trade promotion campaign. You will simply need to input the suggested data and embedded formulas will automatically calculate an estimated ROI for your upcoming trade promotion campaigns.

January 24, 2025 - This, in effect, means that you need to have some means decomposing total volume into two subcategories: 1)base – sales without promotion and 2) incremental- sales attributable to promotion. We’ll examine this topic further in a separate article. The most basic ROI formula is: Return / Investment

May 22, 2024 - The real volume uplift, as I like to call it, is the sum of the additional volume redirected from competitors (effect 4) and the category’s incremental volume (effect 5). Then, we also need to take into account the direct impact that effects 1 to 3 have on ROI. This impact can be summarized as the three ‘hidden’ promotional costs: 1.

October 20, 2025 - Trade Promotion ROI = (Incremental Gross Margin – Promotional Spend) / Promotional Spend · This formula measures return on investment by contrasting the additional gross margin from the promotion against the promotional expenditure.

$$\text{Promotional ROI} = \frac{\text{Promotional net profit}}{\text{Promotional costs}} \times 100$$

November 22, 2017 - Calculate your return on investment for the campaign by subtracting your sales promotion total cost from your gross profits, dividing that number by your sales promotion cost and then multiplying that number by 100 to get a percentage.

January 24, 2025 - If you do not decompose volume between base and uplift, you cannot calculate ROI. The simplest way to calculate base is to chart your volume over a proceeding period for a customer / SKU combination. For this, weeks is generally better than months, and if the information is available, also overlay base and promoted volume data from a syndicated provider.

January 15, 2025 - Determine the ROI for each trade promotion by comparing the incremental sales lift to the cost of the promotion. The formula for trade promotion ROI is: ROI (%) = ((Incremental Gross Profit – Trade Spend) / Trade Spend) x 100 ·

June 27, 2025 - Trade Spend ROI = (Incremental Gross Margin - Trade Spend) / Trade Spend · This formula calculates the return on investment by comparing the incremental gross margin generated from the promotion with the initial trade spend.

June 20, 2025 - So even though sales dropped, your campaign has an ROI of 60% calculated from ($800 - $500) / $500 x 100, That's a great return in the first month of a campaign. It shows that the campaign reduced the average amount of lost sales.

April 30, 2025 - (Sales Growth – Average Organic Sales Growth – Marketing Cost) / Marketing Cost = Marketing ROI · In this formula, you still include all of your sales growth (ex.

August 20, 2024 - There’s actually a more precise ROMI formula: ROI = (Total Revenue – Organic Sales Revenue – Marketing Costs) ÷ Marketing Costs × 100% Now let’s get back to the previous example.

For example, if your marketing campaign earned you $500 in sales and cost you a total of $250 to develop and execute, then your total ROI would be ((500 - 250) / 250) X 100% = 100%. That means you doubled your investment!

November 11, 2023 - Here are some common methods and formulas that you can use: If you want to measure the ROI of a promotion based on the sales growth and the marketing cost, you can use this formula1: ROI = (Sales Growth - Marketing Cost) / Marketing Cost x 100 This ...

May 29, 2025 - ROI analysis is essential for adjusting ... of a marketing campaign, use the formula: (Earnings generated - Campaign costs) divided by the campaign costs multiplied by 100....

Gross Profit: Tying in gross profit ... should add the following to their marketing ROI formula: = (Total revenue - cost of goods to deliver a product)....

June 27, 2022 - In the context of promotional evaluation, ROI allows comparing different types of mechanics (3×2, 2nd unit at 50%, price reduction), visibility (folder, gondola head, island), “on pack”