Brand Managers always find themselves in tough spots figuring out accurate answers to the questions highlighted below:
- How did our promotions perform last year?
- Do we have enough time to analyze all the promotions with limited visualizations?
- Has the promotional ROI and revenue improved after changing discounts from prior year/ previous snapshots of data?
- How should I remove/ reduce red promotions across Customer or Category or Brands?
- Challenges in determining the performance of executed promotion campaigns.
- Lack of resources available to analyze the promotion campaigns.
- Challenges in measuring effective ROI depending on the campaigns executed.
- Challenges in understanding the impact of discounts, offers on the ROI.
The SpendO Way
SpendO smartly maps and summarizes the promotions in the form of Quadrants (Red, Amber and Green) and identify the red promotions(least performing) across Retailers/Category/Brand in comparison with previous year.
In below examples, Deodorants has highest no. of Red events are 12 compared to last quarter which can be reduced to improve.
SpendO also provides comparison between snapshots of planning data to check whether planning is improved or not. Snapshot reports help planner to check red promotion across snapshots (Monthly basis) to identify red cells and reduce those red events which results in fruitful ROI.
SpendO can intelligently identify promotions which are weak and can be cut down. Tail means events that provide low profit, revenue or margin but are not highlighted in red.
SpendO analyzes bottom 50 % events based on the revenue factor and applies algorithm on events (revenue less than 20 % and gross margin less than 40%) and finally gives you the outcome of weak promotions which can be cut or modified to perform better.
Tail analysis also identifies promotions that drive complexity in the category for little return in revenue.
Director has been tasked to cut down promotional program by 20% in the next year. SpendO tail analysis can help director with insights on which promotions should be recommended for deletion and how could we recover the lost in revenue?
- By using the insights provided by SpendO, Brand managers were able to reduce bad promotions by 20%.
- Brand managers now can precisely measure the effectiveness of promotion.
- They can also Identify bad promotions and take corrective measures to reduce it.
- Analysis of top performing and underperforming brands, helped planners take strategic measures to make improvements in upcoming promotions.