Price & Promo Analysis

Maximise Your Sales Margin with Deep Dive Price and Promotion Insights

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What is Pricing and Promotional Analysis?

Pricing and Promotional Analysis is a critical tool for businesses aiming to optimise their pricing levels and their promotional activities for maximum revenue and profit. It deep dives into all your promotional mechanisms to identify ideal price points and the most profitable (and unprofitable) promotions. Additionally, it evaluates the effectiveness of various promotional tactics – ranging from discounts to seasonal offers – on sales performance, enabling businesses to understand which promotions drive sales and enhance ROI effectively.

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What You'll Gain

Employing Price & Promo Analysis, you’ll gain comprehensive insights that empower you to make informed decisions on future promotions. You’ll uncover the effectiveness of various promotions, understand the ‘true’ revenue and ROI after accounting for sales cannibalisation, and remove promotions that are costing you. This strategic approach optimises your promotional spend, ensuring you invest in activities that genuinely contribute to your bottom line.

Ranking the top and bottom performing promotions reveals the common features of success and failure

Benefits

Unlock the power of data-driven pricing and promotional strategies:

Optimizing Pricing Strategies

This analysis helps in identifying which types of promotions and discounts are most effective at boosting sales without significantly eroding profit margins. By understanding the precise impact on sales margin, you can fine-tune your pricing strategies to balance attracting customers with maintaining healthy profits, ensuring that promotional activities contribute to both short-term sales boosts and long-term profitability.

Understanding Customer Response and Canibalisation

Evaluating the impact of discounts and promotions on your sales margin can provide insights into customer behaviour and price sensitivity. This knowledge allows you to tailor future promotions to match customer expectations and buying patterns, increasing the effectiveness of your marketing efforts and improving customer satisfaction and loyalty.

Strategic Decision-Making for Inventory Management

By analysing how different promotions affect sales margins, you can make more informed decisions regarding inventory management. This includes planning for stock levels to meet promotional demand without overstocking, as well as clearing out old or excess inventory in a margin-conscious manner. Effective inventory management based on promotional insights can reduce costs and improve operational efficiency.

Loss Prevention

This analysis allows you to identify and cease any loss-making promotional activities or tactics, thus conserving resources, and maximising margins.

We Tackle Key Questions

Which promotions are the most and least profitable for my business?
What types of promotions yield the highest ROI?
How does cannibalisation affect the true impact of promotions?
Which promotions actually cost me margin?

What We Do

Our Price and Promo Analysis equips businesses with the insights needed to refine pricing and promotional strategies, ensuring every marketing pound is invested wisely for maximum impact and efficiency.

Statistical Performance Modelling

We build econometric models that analyse a range of performance measures for each promotional event, including sales uplift, incremental sales revenue, and ROI, to paint a clear picture of each promotion's impact.

True Revenue and ROI Calculations

Our analysis goes deeper to uncover the true revenue and ROI of promotions, considering cannibalised sales and post-promotion sales trends, ensuring you understand the real value of each campaign.

Loss Analysis and Savings Identification

We identify promotions that result in a loss, offering insights into how much could be saved by avoiding these activities, thereby optimising your promotional strategy for better financial health.

Price and Promo Analysis equips businesses with the insights needed to refine pricing and promotional strategies, ensuring every marketing pound is invested wisely for maximum impact and efficiency.

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What it looks like

Through detailed infographics and case studies, we showcase the process and outcomes of Price & Promo Analysis, highlighting how specific promotions and pricing strategies have transformed businesses, guiding you towards more profitable marketing decisions.

The performance of individual promotions will differ depending on a whole host of factors.

Measure the true promotional uplift by accounting for cannibalisation.

We can calculate immediate savings from ceasing all loss-making promotional activity.

Individual promotions can be categorised into performance groups based on their ROIs and Revenue.

Give individual impacts of every promotion