Trade efficiency

Trade efficiency measures how much promotional lift is associated with each $ spent marking down an item on promotion.

Trade efficiency measures how much promotional lift is associated with each $ spent marking down an item on promotion. A value above $1 means the investment breaks even, and the higher the value, the more efficient promotions are. A value between $0-1 means investment drives lift, but does not break even. Negative values means promotions do not drive any lift.

Related Terms

Incremental $ lift per week of support

The sales above baseline (lift) sold for every week of promotion activity.

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Percent incremental

This means dollars of lift divided by dollars spent on the promotion. The higher the efficiency rate, the more productive trade promotion.

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