# Promotion ROI % (Profit-based)

**Description:** Contribution ROI measured on **incremental profit** (margin-adjusted) instead of just revenue.

**Formula:** *Contribution ROI % = (Incremental Profit – Trade Spend) ÷ Trade Spend × 100*

**SQL Calculation:**

```sql
((SUM(incremental_units) * unit_margin - SUM(trade_spend)) / NULLIF(SUM(trade_spend),0)) * 100 AS contrib_margin_roi
```

**Why It Matters:** True profitability measure of promotions, factoring product margins.

**Metric Type:** Result (Profitability)

**Essence:** Lagging

**Frequency:** Per Promo Event

**Units:** Percentage (%)

**Suggested Breakdowns:** Product, Retailer, Promo Type

**Questions Answered:**

* Did the promotion create profit, not just revenue?
* Are we overspending on low-margin promotions?

**Potential Causes of Worsening:** Heavy discounts on low-margin SKUs, excessive trade spend, competitor price wars.

**Tactics to Improve:**

* Prioritize promos on higher-margin SKUs
* Reduce discount depth
* Bundle products

**Related Metrics:**

* Promotion ROI %
* Incremental Units
* ROI per Case

**Related Explores:**

* Contribution ROI Analysis

**Related Sources:**

* URMS + Margin Data from ERP


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