Promotion Optimization

Improve ROI with effective promotions

A report by Booz Allen states that a significant portion of the retailers lose over one-third of the money invested in trade promotions. This is mainly due to the inability of decision-makers to measure trade promotion effectiveness and ROI and profitably optimize spend by leveraging data. 59% of trade promotions globally don’t break even – Nielsen Holdings.

Business Driver

The optimization of promotional activities to improve ROI while taking into consideration profit margins and product cannibalization.

Data Needed
  • Data on sales (number of units per item per store of product and similar products) at high frequency
  • History of promotion implementation with details

Impact assessment of promotions on sales – guidance on what promotions should be activated in the future (+ list of factors that increase the chances of success).

Methods Used
  • Logistic regressions
  • Event Study Methodology
  • Difference-in-Difference approach

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InsightOut Analytics

InsightOut Analytics is a consulting firm for Data Science, Machine Learning & AI.

We develop complete business solutions which enable our clients to stay competitive in their industries by taking data-driven decisions.

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