When running a campaign or a promotion, especially one with a conversion or sales goal, it is important to understand if the campaign was successful and hence drove the incremental sales you were hoping for.
What are incremental sales? these are sales that are above and beyond the sales in your business plan or forecast. You were able to achieve these additional sales as a result of running a campaign.
How can incremental sales be measured? The truth is that incremental sales are not easy to measure and you may not get an accurate read. However, while it's sometimes tricky to measure, it will give you a good understanding of the success of the campaign.
In addition, when deep diving to understand the campaign success you will be able to learn what worked, what didn't and how to apply these learnings on the next campaign. So being honest with yourself when calculating the incremental sales is important. Because you will not always find the result you were hoping for- just keep that in mind.
Now let's get down and dirty, ready?
Here are the 4 important steps to measure incremental sales:
*I recommend excel or Google sheets for this analysis
Picture this: Your campaign goal is to generate +$20K in incremental sales from November 1st to 15th.
📊 #1: Dive into the past.
Take a look at a comparable sales period without any promos. Going back to our example, if you are running a two-week campaign from Nov 1st-15th, look for two weeks in your business that can be consider a baseline. i.e no holidays, no seasonal trends, abnormal weather or anything that could impact your business.
Understand your baseline sales by day/week, look at average daily sales.
📊 #2: Dive into the present.
Once your campaign wraps up, export your daily sales data. Find daily and weekly sales average.
Now, compare your campaign sales to the benchmark period.
📊 #3: It's time for the big reveal!
Did you witness a surge in sales over base? If yes, congrats!
Those are your incremental sales.
If not, it's a golden opportunity to uncover why.
📊 #4: Learn and apply in the future.
Create a hindsight or After Action Report (AAR).
Explore what worked like a charm and what didn't quite hit the mark.
Ta-da! you nailed it!
Here is a quick video summarizing of the steps:
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