Promotion ROI % (Revenue-Based)

Description: Return on investment of a promotion, based on incremental revenue relative to trade spend.

Formula: ROI % = ((Incremental Sales – Trade Spend) ÷ Trade Spend) × 100

SQL Calculation:

((SUM(incremental_dollars) - SUM(trade_spend)) / NULLIF(SUM(trade_spend),0)) * 100 AS promo_roi_percent

Why It Matters: Evaluates if promotional spend generated a positive return.

Metric Type: Result / Cost Efficiency

Essence: Lagging

Frequency: Per Promo Event

Units: Percentage (%)

Suggested Breakdowns: Retailer, Product, Promo Type

Questions Answered:

• Did we get more back than we spent on trade promotion?

• Which promotions delivered the best ROI?

Potential Causes of Worsening: Higher trade spend, lower incremental sales, poor retailer execution.

Tactics to Improve:

• Focus on high-ROI tactics (display + feature)

• Limit over-promotion

• Optimize trade allocation

Related Metrics:

• Incremental Sales

• Cost per Incremental Unit

• Contribution Margin ROI

Related Explores:

• Promo ROI Dashboard

• Trade Spend Allocation

Related Sources:

• URMS

• Trade Spend BSD