ecom-promo-roi
Promotion ROI Analysis
Framework
IRON LAW: Measure INCREMENTAL Sales, Not Total Sales During Promo
A promotion that generates $100K in revenue during a sale week looks great —
until you realize $80K would have happened anyway (baseline). The incremental
lift is only $20K. If the discount cost $25K in margin, the promo LOST money.
Promo ROI = (Incremental Revenue × Margin - Promo Cost) / Promo Cost
Key Metrics
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