With many retailers canceling promotions during the initial months of COVID, it may be tempting to forget about your promotions and your trade budget altogether. As part of our Keep Moving insights series, we’re offering a perspective on best practices in managing and optimizing your trade promotions today, tomorrow and in 2021.
Rather than ignoring promotions, leading brands are leaning in to their promotion analytics and planning. Now more than ever, it’s critical to continue to understand and manage promotions for your strongest possible ROI.
So lean in with us and get some tips to make the most of your trade strategy and budget.
At this moment: Pay For Performance
Make sure you’re not paying for something that didn’t happen! Ensure compliance for your pay-for-performance budget dollars and associated promotions.
With retailers cancelling promotions, a key risk right now is that you may be paying for promotions that didn’t get executed. For instance, did you already fund a promotion with $0.50/unit OI to your distributor?
Solution: Make sure you’re reading POS data for whether the TPR, Feature, and/or Display was executed. Compare planned calendar vs. actual promotions to ensure pay-for-performance compliance.
Tomorrow: Re-plan second half of 2020
Take a new, critical look at the second half of 2020. In today’s environment, retailers are pulling back promotions and you may be looking to conserve cash, but you need to pull back on the right promotions. That way, you can save money while staying competitive and accessible to your customers.
Solution: Leverage your 2019 Q3-Q4 promotion analyses to identify which promotions were most/least effective. Through ranking your promotions by ROI (vs. Lift), you’ll better ensure you’re keeping the most effective promotions and maximizing brand profit.
2021: Build a winning retailer plan
Even though we are in uncertain times, account planning continues. 2021 account planning begins in May and gets into full swing in late July through August, and just like every other year, it will be important to capture and apply your learnings on what worked vs. what didn’t in the past.
Solution: More than ever, retailers expect brands to come to the table with fact-based insights for 2021. Best practice brands are codifying their learnings on 2019 full-year trade promotions, retailer-by-retailer.
SPINS has the data you need to understand what’s happening to your products within the retail environment. This data will equip you with proof and knowledge to negotiate your best, most profitable outcomes.