Quantifying the value of sales and discounts in marketing

In this video, we delve into the intricacies of quantifying the value of sales and discounts in marketing through GrowthOS.

Sales promotion has long been a popular tactic for marketers, especially during tough market conditions or when struggling to meet sales targets. However, we argue that advertisers need to approach price promotions with great care and a deeper understanding of their impact. By analyzing incremental sales volume, GrowthOS enables marketers to uncover the true effectiveness of their promotional efforts.

Using a panel of thousands of ordinary shoppers who recorded their grocery purchases over time, this video demonstrates how price promotions can alter consumer behavior. We illustrate the different components of sales volume during a discounting period, including subsidized sales, relocated sales, time-shifted sales, and incremental sales. It becomes evident that overestimating the impact of price promotions can lead to eroded margins, negative long-term brand perceptions, and potential market share loss.

To overcome these risks, GrowthOS provides detailed insights into the long-form sales drivers, separating expected sales from those directly influenced by price promotions and other marketing activities. By eliminating noise and gaining a clearer picture of the true promotional value, advertisers can make informed decisions and optimize their sales strategies.

With an increasingly noisy marketing landscape, it is crucial to understand the real impact of sales promotions on overall business performance. By leveraging GrowthOS, marketers can uncover the value of each promotional effort, identify the most effective sales promotion techniques, and refine their strategies to drive sustainable growth.

Join us in this video as we explore the power of GrowthOS in quantifying the impact of the value of sales and discount pricing in marketing the true value they bring to your brand.

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