RESOURCE CENTRE

Boost Revenue and Profitable Growth with Trade Promotion Management

Billions in trade spend goes unevaluated every year. Are you getting your money’s worth?

Chapter 2: Enable finance to make cost-effective decisions

Get the insights you need to make smarter decisions with real-time data.

Does your finance team have the real-time data and analytical tools to thoroughly evaluate your trade fund programs for success now? For most business users (58%), the answer is no. That means companies industry wide are likely leaving billions of dollars on the table at the same time their finance departments are under pressure to make the most of every dollar.

58% percent of users cannot measure promotion effectiveness

58% of business users do not have the real-time data and analytical tools to thoroughly evaluate the effectiveness of their trade fund programs.

“Winning Through More Insightful, Better Executed Promotions,” Promotion Optimisation Institute, August 2019.

Faster and more compliant trade planning and execution

Promotion compliance rates are only 55%. Tracking promotion data on a spreadsheet or a limited-use TPM program won’t prevent overruns. It also doesn’t empower finance to make quick decisions about where to allocate (or reallocate) assets.

By digitising TPM on one connected platform, finance teams can:

Gain visibility into real-time performance and funds availability
Monitor and act on trade promotions across your entire organisation

Only 9.5 percent of companies can monitor and adjust promotions

Only 9.5% of companies are able to monitor promotions in-flight and make mid-cycle adjustments.

“The State of TPx and Retail Execution for Global Consumer Goods and Retail,” Promotion Optimisation Institute, September 2019.

Instant visibility into trade spend effectiveness

Only 9.5% of companies are able to monitor promotions in-flight and reallocate ineffective investments. Real-time data enables finance teams to see at a glance how much they are spending on promotions, both in the aggregate and by product, region, or location. This helps finance instantly surface the most profitable products in the portfolio.

More accurate forecasting and post-event analysis

Industry estimates suggest forecast accuracy is only in the 60% range. Digitising TPM enables finance teams to build a unified sales forecast that includes predicted volumes and revenue streams across new and run-rate business. Employees can customise formulas and metrics to generate reports that reflect the complexity of the business. You will understand the root causes of overperformance or underperformance with analysis of price, display size, location, seasonality, or timing. Armed with these insights, you can effectively direct production and delivery, and optimise existing promotions for the next iteration.

Chapters

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