Know what your promotions really deliver
Sales uplift alone doesn't tell the full story. Net Promotion Impact measures whether promotions generate genuine business growth through category expansion and competitive switching – or simply subsidize existing purchases. By quantifying the true incremental value of every promotion, brands and retailers can identify which activities create sustainable growth and which simply erode margin.
Separate growth from existing demand
Using continuous household purchasing data, Net Promotion Impact compares each shopper's usual purchasing behavior with how they behave during promotions. The analysis identifies four outcomes: category expansion, brand switching, retailer switching, and subsidized purchases. This reveals exactly where promotional volume comes from and how much is truly incremental.
Plan more profitable promotions
Compare promotional effectiveness across brands, retailers, mechanics, and campaigns to understand which activities create lasting commercial value. Net Promotion Impact supports promotion planning, retailer negotiations, category strategy, and investment decisions with evidence of what drives genuine growth – not just short-term sales spikes.
Measure true incremental growth
Separate genuine promotional gains from sales that would have happened regardless.
Understand promotion effectiveness
Identify whether promotions drive category growth, competitive switching, retailer switching, or simply subsidize existing demand.
Optimize future investment
Compare promotional performance across brands, retailers and campaigns to focus investment where it delivers the greatest return.
FAQs
What is Net Promotion Impact?
Net Promotion Impact measures the true incremental value created by promotions. It separates genuine growth from sales that would have occurred anyway, helping brands and retailers evaluate promotion effectiveness more accurately.
How does Net Promotion Impact measure incremental sales?
The solution compares each shopper's normal purchasing behavior with their behavior during promotions. It identifies whether promotional purchases resulted from category expansion, brand switching, retailer switching, or existing purchasing habits.
Why is incremental growth more important than promotional sales?
High promotional sales don't always represent business growth. Some purchases simply occur earlier or at a lower price than they otherwise would have. Net Promotion Impact distinguishes between genuine new sales and subsidized demand, enabling more informed investment decisions.
Who benefits from Net Promotion Impact?
The solution supports category management, commercial teams, shopper marketing, revenue growth management, trade marketing, and retail partners by providing evidence of which promotions generate the greatest commercial return.
How can Net Promotion Impact improve promotion planning?
By comparing promotions across brands, retailers, and mechanics, businesses can identify which activities drive genuine growth, attract new shoppers, expand the category, and deliver the highest incremental return on investment.
