Running promotions and putting out marketing material is just a part of doing business. No matter the industry or the products you produce, when it comes to attracting new customers, offering goods they need at a beneficial price will help bring these customers into the fold. However, how much money are you spending on specific promotions, and what kind of margin are you generating with set sales and advertising campaigns? We know it can be difficult to pinpoint, especially if you have multiple promotional campaigns running simultaneously. This is why you need to invest in trade promotion management (TMP). TPM will help you maintain a better understanding of what is going on with your advertising and which methods generate the best return on investment.
What is Trade Promotion Management (TPM)?
Over a given year, your business likely performs several promotional campaigns to generate interest either in your business or in a specific product you offer. These kinds of campaigns can vary drastically in scope. There might be campaigns for work conferences and conventions you attend. Or you might offer special deals for clients that sign up through a special Facebook or Twitter link. You may even take advantage of more traditional forms of advertising, such as television spots or radio ads. However you go about promoting your company, you need to know what is working, what isn’t, and what kind of return on investment each generates.
The problem without properly tracking the ROI on your marketing approach is that methods that seem to be working may cost you more money. Advertisements on Facebook, for example, can cost you several dollars per ad click. Even if you are generating quality sales through this ad method, it’s costing you more to advertise on the social media platform based on accidental or non-interested clicks, and it’s not a valuable way to attract customers.
This is where trade promotion management comes in.
TPM services help you manage promotions and go over the promotion’s cost and ROI. This way, you will better understand what is working, what the promotions are costing you, and what kind of price point you’re paying for each new customer. With this information on hand, you will be able to make a better, educated decision about what promotions you should continue with, what promotions you should tweak to make them more cost-effective, and which promotions you should pull the plug on.
Additional Benefits of TPM Services
Beyond pinpointing the cost and ROI of your promotions, TPM services can help you accurately determine the risk of each promotion. With the company’s help, you will predict the promotion cost more accurately and expect what sort of margins. This information can help you adjust specific price points within the promotional campaign, which can help you craft better pricing for the products you’re offering and what sort of sales you should be providing your customers to maximize your ROI.
Cut Human Error
Human error remains one of the most significant factors in potential revenue loss. Whether this is someone typing in the wrong dollar amount or inputting the wrong number of units solid, there’s no shortage of ways a human can accidentally make a mistake, which in turn can cost you significantly. With TPM services, you can catch these human errors before they go live, saving you not only the headache of trying to work with customers that have taken advantage of this human error but save you the money you would lose because of the error.
TMP will provide you with a digital paper trail to easily follow the information back to the source. Instead of attempting to sift through mounds of paperwork and hundreds of files, the TPM digital footprint provides you with an easy road to follow. This will help you find both the problem and the cause. By uncovering how the issue came to pass, you can make any necessary adjustments to ensure this problem doesn’t happen in the future.
Knowledge is King
It doesn’t matter the industry or the products; knowledge is king when marketing. The more you know about your customers, the easier it becomes to market to them. And the more you know about your promotional approach, the easier it becomes to tweak and improve your outreach methods.
Instead of using the same marketing approaches year in and year out, TPM systems allow you to find what is working and what isn’t. You can then take money from the marketing approaches with poor ROIs and inject it into other business areas. All this, in turn, will help boost sales and cut down on unnecessary expenses for your promotions.
Invest In Your Company With Trade Promotion Management
You understand the importance of marketing your products to potential clients. You know it’s one of the best ways to bring new customers into the fold and help increase your business’s bottom line. However, you also see the value of identifying the marketing methods working for you and delivering the greatest return on investment. When dealing with several promotional methods, this can be difficult to do on your own, and sifting through hours of spreadsheets is not a valuable utilization of your time.
A strong trade promotion management system can revolutionize the way you do business. That is why you need to harness the power of trade promotion management services. So, to take your promotional management to the next level, you’ll want to implement a TPM today. If you’re interested in learning more about TPM and how it can increase your company’s profits while reducing unnecessary expenses, now is the time to contact Incentive Insights today.
At Incentive Insights, we help businesses learn more, make fulfillment easier, and drive more value from your incentive marketing. Not all businesses are the same so why go with cookie-cutter services when you can build a solution that fits your unique business’s needs. With over 20 years of experience, we offer b2b incentive programs, sales incentive program management, rebate processing and so much more. We design customer portals with a range of customizable options, helping companies take full advantage of the range of benefits rebates offer. See what we can do for you by getting a free offer setup or calling (914) 290-4234 today.