ROI USE CASE:

OPTIMIZING TRADE SPEND

$1.3M-$2.6M ANNUAL SAVINGS +

$2M-$18M INCREASED REVENUES

Business Proposition

Take 1%-2% of your poorest-performing trade promotions and reinvest those savings in your top 1%-2% promotions.

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Business Scenario

•   Assume company annual revenues = $1B

•  The industry average for trade promotion investment = 13%-27% of 
    annual revenues and can be as high as 33%. 
    (Source: 2022 Hand Promotion Management Study)

•  $1B revenues x 13% = $130M promotional spend per year

•   A typical trade promotion event realizes a 150%-700% lift.

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SOLUTION AND RESULTS

Using VELOCITY®, Retail Velocity helps the client continuously analyze all trade promotions to identify the 1%-2%  poorest-performing promotions, with the client providing insights into the cause of low performance.

$130M

Promotional Spend per Year

$1.3M - $2.6M

Annual Savings

(Eliminate bad spend from future trade promo spend and create free cash flow.)

$2M - $18M

ROI / Increase in Revenues

Via 100% reinvestment from annual savings

TESTIMONIALS

“Retail Velocity and its VELOCITY® platform have been a real strategic asset for us. In addition to bringing on additional revenues, we also credit VELOCITY with our ability to give our customers tangible proof of our impact on their bottom line and prove our value to them over time. Our customers want to know how we can do all the things we do—how we provide the timely and accurate reporting no one else can. That's a huge competitive advantage, and we credit VELOCITY®."
-Vice President of Sales, National Sporting Goods Supplier
"VELOCITY® allows us to spot exceptions 10 times faster than our old system. It lets us take a 'snapshot' of every retail facility we serve across the country—at the store level—so we can instantly identify a low on-hand number or a high 'phantom' number. Because VELOCITY's exception-based reporting highlights these products for us, we can dig right into the data quickly and attack those numbers directly to determine specifically which SKUs and stores are problematic and then go in and provide a solution. And even though we have not added any new field sales staff, our service levels are much higher.”
-Account Manager, Large Consumer Goods Manufacturer
“The use of VELOCITY®, combined with some improved standard work processes, has enabled us to run this continuing data, reporting, and analytics challenge almost like a production facility. It's given us standard processes and practices, standard exception reports, and has allowed us to take corrective actions on a regular basis. To be a preferred supplier to our leading retail partners, we must continually improve their cash flow, sales, and profits. Retail Velocity has helped us achieve those goals."
-Product Supply Director, Global Consumer Goods Manufacturer
“It’s all about greater visibility. The VELOCITY® platform lets us share information internally and with retailers more quickly, which lets people make better decisions and react more quickly to sales opportunities or critical issues. For example, we’re able to easily identify a retailer’s top 200 stores and if there’s a sale next month, I can tell them that we should send these stores extra product because they ran out the last time. I can even identify a list of stores that don’t have any of our products on their shelves, and that’s really free money we don’t want to lose.”
-Senior National Account Manager, Global Home Essentials Company
“With VELOCITY®, we’ve created a much more efficient process that drastically reduces the time we spend getting and analyzing retail data. Because the process used to consume so much personnel time, sales and marketing teams sometimes went without having all the data they’d have liked to have. That doesn’t happen anymore.”
-Sr. Manager, Consumer Shopper Insights, Global Apparel Manufacturer

GROW YOUR BUSINESS AT THE SPEED OF NOW


Retail Velocity helps you automatically collect and leverage the most reliable data from all retail data sources. With accurate data at the most granular level, you can make insightful decisions that increase sales, reduce costs, and maximize profitability.