Not Every CPG Promotion Needs be Profitable—But You Still Need to Know the ROI
Not every promo needs to be profitable—but you still need to know which ones are. Learn how to measure ROI and optimize your CPG trade spend.
In the world of CPG, promotional events are often seen as surefire growth drivers. But here’s the truth: not every promotion is meant to generate immediate profit—and that’s okay. The real danger isn’t running a low-ROI event. It’s not knowing which ones are profitable and which ones aren’t.
Measuring ROI on your CPG trade spend helps you make smarter promo decisions—even when profitability isn’t the main goal.
The Purpose Behind Every Promo
Smart brands don’t promote for the sake of promoting. They plan each event with intention. And typically, that intention falls into one of four buckets:
1. Drive Trial
Launching a new product? Your goal is to get it into as many hands (and mouths) as possible. Trial-driving promotions—like an aggressive discount or a coupon—can help introduce your product to new consumers. These might not always drive profit up front, but they’re essential to building awareness and momentum.
2. Drive Repeat Purchases
Following a successful trial, the next step is encouraging repeat behavior. These promotions may be less aggressive than a launch offer but are focused on reinforcing the habit. The aim here is to turn first-timers into loyalists.
3. Steal Share
In a crowded market, sometimes your job is to pull shoppers away from the competition. Strategic promotions can attract consumers from rival brands or adjacent categories. The ROI might not show up immediately—but done right, you’re increasing brand penetration.
4. Defend Share
Your competitors are always watching. When they see your product hitting shelves or gaining traction, they may respond aggressively. This happened to one brand we worked with: after launching in a key retailer, a major competitor dropped a hot BOGO to flood the market and suppress trial. The takeaway? Promotions aren’t always about offense—sometimes you need to play defense to protect what you've already earned.
When You Don’t Measure, You’re Flying Blind
It’s easy to justify a promotion based on strategy or gut feel. But without real numbers, you’re just guessing. That’s why measuring ROI—regardless of your promotional goal—is critical.
Even if a promo wasn’t designed to be profitable, knowing its true impact helps you:
Confirm if it achieved its intended purpose
Decide whether to repeat, revise, or retire the tactic
Spot where your competitors are most aggressive
Avoid unintentionally destroying value
Know the Purpose. Track the ROI. Optimize the Outcome.
If you’re only measuring sales lift or revenue, you’re missing half the equation. Promotions can (and should) serve different strategic goals, but that doesn’t mean you should skip the analysis. Ready to unlock trade spend visibility? Check out this blog post to identify and understand your blind spots.
Want to Know If Your Promotions Are Actually Working?
TrewUp’s free Promo ROI Calculator helps you evaluate each event’s true profitability. Whether you’re trying to drive trial or defend your shelf space, our tool shows you what’s working—and what’s just burning spend.
Don’t just run more promotions. Run better ones—with data.