10 Metrics EVERY CPG BRAND Should Be Tracking to Optimize Trade Promotions
When it comes to trade promotions, you don’t need more promotions—you need better ones. And the only way to run better, more profitable events is to measure what actually works.
Most brands make the mistake of relying on gut instinct or topline sales numbers to judge performance. But without the right data, it’s easy to keep throwing money at tactics that don’t move the needle.
So what should you be tracking?
Below are 10 key metrics every brand should monitor to measure event performance, maximize ROI, and make smarter trade spend decisions.
1. Base Units (Non-Promoted Sales)
Start with your baseline: how many units do you typically sell when you're not on promotion? Break this down by units per store per week for better accuracy and benchmarking.
2. Units Sold During the Promotion
Next, look at total units sold during the promotional period. This will help you calculate your lift and understand how the event influenced buyer behavior.
3. Incremental Unit Lift
Subtract your baseline units from your promo-period units. This is your true incremental lift—the additional units moved because of the promotion.
Formula: Promo Units – Base Units = Incremental Lift
4. Promo Spend Per Unit
Track the total spend per unit across all vehicles: off-invoice (OI), scanbacks, MCBs, and any other promotional costs. This will help you understand the cost-effectiveness of each unit sold.
5. Points of Distribution by Retailer
How many stores carried your product during the promotion? Knowing your points of distribution (POD) gives you context to evaluate performance and calculate meaningful metrics like units/store/week.
6. Administrative Fees
Promotions often come with hidden costs—retailer setup fees, distributor charges, and deductions. Don’t overlook these fees; they directly affect your true spend and ROI.
7. Additional Event Costs
Beyond discounts and fees, what else did you invest in the event? Think ad placements, display materials, or EDLP overlays. Capture all costs for a holistic view of your spend.
8. Post-Promotion Baseline
Did your baseline shift after the promotion? An increase may signal that the event successfully drove trial, repeat purchases, or market share. A flat or declining post-promo baseline may tell a different story.
9. ROI of the Event
Combine the above metrics to calculate return on investment. Did the event perform above, at, or below break-even? ROI is the ultimate test of whether the spend paid off.
10. Trade Spend by Retailer
Zoom out and look at your spend by retailer. Track total trade dollars, revenue, and calculate your trade rate (spend ÷ revenue). This helps identify where your dollars are working hardest—and where you may be over-investing.
Why This Matters
When you’re not tracking these 10 metrics, you’re flying blind. You may be spending heavily on promotions that feel successful but are actually hurting your margins. Worse, you could be under-investing in events that are quietly driving real ROI.
Brands that track these metrics are better prepared going into retail meetings and trade shows. They know what worked, what didn’t, and can negotiate from a place of confidence. One brand we work with reported that once they had these insights, they were able to sell more at higher margins—a win for both them and their retail partners.
Final Thought
It’s easy to fall into the trap of “run and gun” promotions. But the most successful brands treat their promotional calendars like a business strategy—grounded in data, measured in ROI, and constantly optimized.
Want help putting this into practice? Dive into our free Promo ROI calculator here or reach out—we’d love to help you get the clarity you need to grow smarter.
💡 FAQ: Optimizing Trade Promotions with Data
1. What metrics should I track to evaluate trade promotions?
To evaluate trade promotions effectively, track these 10 key metrics: base units (non-promoted sales), units sold during the promo, incremental lift, promo spend per unit, points of distribution, admin fees, additional event costs, post-promotion baseline, ROI, and trade spend by retailer. These metrics help you assess what worked and what didn’t.
2. How do you calculate incremental lift from a trade promotion?
Incremental lift is calculated by subtracting your base (non-promoted) unit sales from your promotional unit sales.
Formula:
Promo Units – Base Units = Incremental Lift
This tells you how many additional units were sold as a result of the promotion.
3. What is promo spend per unit and why does it matter?
Promo spend per unit is your total trade spend (OI, scanbacks, MCBs, etc.) divided by the number of units sold during a promotion. It helps you understand how much you’re spending to move each unit and whether your promotions are cost-effective.
4. Why should I track post-promotion baselines?
Your post-promotion baseline reveals whether the promotion had a lasting effect. If your base sales increase after the event, you may have driven trial or repeat purchases. If not, the promotion may not have added long-term value.
5. What’s the best way to measure trade promotion ROI?
Trade promotion ROI considers both sales lift and total promotional costs. To calculate it, compare incremental profit from the promotion to your total promo spend. Promotions that don't at least break even should be reevaluated or cut.
6. How do I know if I’m spending too much on trade promotions?
If you’re not tracking your trade rate by retailer—trade spend as a percentage of revenue—you may be overspending. Look at your spend vs. return per retailer to identify which partners are underperforming and where to redeploy dollars more effectively.
7. What are common hidden costs in trade promotions?
Hidden costs include retailer admin fees, distributor deductions, ad placements, displays, and overlapping EDLP programs. These often go unnoticed but significantly impact your ROI. Always include them when calculating total promotional spend.
8. How can I use data to negotiate better with retailers?
When you track promo performance by retailer and event, you can walk into trade shows or line reviews with real data. You’ll know what worked last time, which promotions drove ROI, and which weren’t worth repeating—giving you a stronger negotiation position.
9. What’s the difference between a good promotion and a profitable one?
A “good” promotion may drive high volume or retailer satisfaction, but a profitable promotion delivers measurable ROI. The best brands don’t just chase sales—they measure outcomes like incremental lift, margin impact, and sustained growth.
10. Where can I get a trade promotion ROI framework?
You can download a free Promo ROI Framework down below and learn more here. It’s designed to help brands analyze events, identify profitable promotions, and cut the ones that waste budget.