Promotion Analytics Solutions
Promotion Effectiveness
Key Concept

Quantify sales uplift compared to a predicted baseline without promotion
Subtract discount to get net impact
Impact

Reduce discounts on promotions with negative net impact (discount > lift)

Use model to predict uplift of promotions with different mechanics
For example, BOGO vs 50% discount on Segment ABC

Use the prediction model to explore potential mechanics for new promotions
Mechanics Optimization
Key Concept
Impact

Narrow down promotion incentives to a small range for A/B Testing
Recommend optimized incentive range to maximize sales or profits
Depending on data, mechanics can be optimized for every level of business


Reduce overall budget with improved promotion outcomes
A/B Testing
Key Concept
Impact

Allow more members to receive the best promotions

Stronger decision-making supported by statistics

Apply inferential statistics to improve test reliability and minimize experiment size
Calculate statistical significance levels and adjust control groups to sample size to a minimum