ROI on customer promotional
activity (BTL activity)
This issue is especially acute in the retail environment where
most consumer goods companies are spending large and ever increasing
sums of money below the line. As TV media fragments,
so the impact from campaigns is diluted.
This phenomenon and the continuing consolidation of
the retail sector help to explain why the proportion
of the marketing budget directed at trade investment (BTL or Below
The Line spending to support brands in the retail outlets) has
been growing rapidly in recent years.
Consumer promotions account for a major part of this increased
spend - from BOGOFs to price reductions, multi buys to link saves
there is a significant (and mutual) investment being made both
by suppliers and retailers.
Maximising the ROI on these promotions is therefore an even
higher priority objective today than it has ever been.
Meridian works with its clients to gather data from a number
of sources – including retailer extranet data such as Asda
Retail Link, Tesco TIE, Sainsbury’s SID and Waitrose Connect
- reducing the ‘background noise’ in the market to
give clear insight into both the ROI on a current promotion and
more importantly, help the organisation decide which promotions
should be run in the first place.
These twin imperatives of optimising promotional planning
and modeling, and accurate promotional evaluation
are critical organisational competencies, which rely on insightful
(and ongoing) analysis which respects and reflects the complexity
of the current environment.
To find out how you can benchmark your approach to maximising
ROI on Trade Investments at outlet level against CPG best practice
click here
