What is incremental ROI in SAP CRM-MKT-MPL-TPO - SAP Trade Promotion Optimization?

SAP Term: incremental ROI

• Component: CRM-MKT-MPL-TPO

• Component Name: SAP Trade Promotion Optimization

• Description: Additional volume of sales that a short-term trade promotion creates minus the cost of the promotional activity.

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• Key Concepts: 
  Incremental ROI is a metric used to measure the return on investment (ROI) of a trade promotion. It is calculated by subtracting the expected ROI of a promotion without the trade promotion from the expected ROI of a promotion with the trade promotion. This metric helps to determine the effectiveness of a trade promotion and whether it is worth investing in.
  
  How to use it: 
  In order to calculate incremental ROI, you must first calculate the expected ROI of a promotion without the trade promotion. This can be done by taking the total sales generated from the promotion and subtracting any associated costs. Then, calculate the expected ROI of a promotion with the trade promotion by taking the total sales generated from the promotion and subtracting any associated costs. Finally, subtract the expected ROI of a promotion without the trade promotion from the expected ROI of a promotion with the trade promotion to get your incremental ROI.
  
  Tips & Tricks: 
  When calculating incremental ROI, it is important to consider all associated costs such as advertising, marketing, and promotional materials. Additionally, it is important to consider any potential long-term effects that may result from investing in a trade promotion.
  
  Related Information: 
  Incremental ROI is an important metric for evaluating trade promotions in SAP Trade Promotion Optimization (CRM-MKT-MPL-TPO). It can be used to determine whether or not investing in a particular trade promotion is worth it in terms of return on investment. Additionally, it can be used to compare different trade promotions and determine which one will provide the best return on investment.