What is 'incremental sales efficiency' in SAP CRM-MKT-MPL-TPO - SAP Trade Promotion Optimization?

incremental sales efficiency - Overview

• Component: CRM-MKT-MPL-TPO

• Component Name: SAP Trade Promotion Optimization

• Description: Indicator that shows how effective a promotion is in terms of additional sales. The incremental sales efficiency is expressed as a percentage of the baseline.

incremental sales efficiency - Details

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  Key Concepts: 
  Incremental sales efficiency is a measure of the effectiveness of a trade promotion. It is calculated by comparing the incremental sales generated by a promotion to the total cost of the promotion. This metric helps companies understand how much additional revenue they are generating from their promotional activities.
  
  How to use it: 
  In SAP Trade Promotion Optimization, incremental sales efficiency can be used to evaluate the effectiveness of a trade promotion. The metric can be used to compare different promotions and determine which ones are most effective in generating additional revenue.
  
  Tips & Tricks: 
  When evaluating incremental sales efficiency, it is important to consider other factors such as customer loyalty and brand recognition. These factors can have an impact on the effectiveness of a promotion and should be taken into account when evaluating the success of a promotion.
  
  Related Information: 
  Incremental sales efficiency is closely related to other metrics such as return on investment (ROI) and cost per acquisition (CPA). These metrics can be used in conjunction with incremental sales efficiency to gain a better understanding of the effectiveness of a trade promotion.