Retailers spend a huge amount of their annual revenue on trade promotions. However according to Nielsen Holdings about 59% of trade promotions don’t break even. The fact of the matter is most retailers still depend on spreadsheets or gut or partial intelligence for running trade promotions and optimizing trade spend.
Given the competitive retail landscape, companies can no longer afford ineffective promotions to hinder their revenues.
In 2019 and beyond we can see more and more retail companies deploying Trade Promotion Optimization solutions (TPO solution) to measure the promotion effectiveness and profitably optimize trade spend.
TPO solutions help improve the performance of trade promotions by powerful analysis and harnessing of influential data of multiple internal and external sources.
Ultimately, Trade Promotion Optimization software is built to generate the maximum promotion ROI with a minimum trade spend. AI helps these solutions in the powerful harnessing of unstructured and structured real-time data generated from multiple sources.