A report by Booz Allen states that a significant portion of the retailers lose over one-thirds 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.
Most CPG companies are still reliant on spreadsheets or ERP or TPM systems to optimize trade promotions. Any robust Trade promotion optimization software should be equipped with advanced analytics. Predictive analytics together with Prescriptive analytics can harness large amount of real-time unstructured and structured data from several market and consumer touch points and transform it into actionable recommendations to help run the right trade promotions. A trade promotion optimization software equipped with Predictive analytics also help you build what-if scenarios to forecast sales for various promotion combinations.