Trade Promotion Management Today
As we are midway through the year, the Consumer Goods industry continues to confront economic challenges. Supply chain and customer demand continue to be volatile as consumers are making buying decisions based on what they can afford versus what they want. As these issues extend, competition in the industry will only increase. Digital Transformation is now no longer seen as an option but as a necessity. As Salesforce recently stated, customers expect fast, digital, and on-demand experiences or they will take their business elsewhere. Leaders across the country are focusing on efficient growth, cost savings, and increased productivity. In our last blog, we mentioned that Trade Promotion Management was one of three investments that were prioritized for CG leaders during 2020. Managing and optimizing trade spending is vital to driving profitable growth in today’s economy.
What is your ROI from Trade Promotions?
One of the most relevant issues facing brands right now is how they are managing and optimizing trade promotions. According to Mckinsey, CPG companies worldwide invest about 20% of their revenue annually in trade promotions. Stunningly, 59% lost money (72% in the US). Clearly, there is a huge opportunity for both CPG manufacturers and retailers to improve ROI on their TPM investment. If CPG leaders want to focus on growth, cost savings, and increased productivity, the current systems being utilized are not working just to break even.
Some companies are managing their Trade Promotion on homegrown systems, which is associated with risks such as limited knowledge, internal integration problems, and future enhancements. At the end of the day, whether you use a homegrown system or not, can you accurately measure ROI from trade promotions? If you can’t, then it’s time to start thinking about moving to a digital and unified platform.
Salesforce Trade Promotion Management
Salesforce recently released its Consumer Goods Cloud Retail Execution solution, Trade Promotion Management, to help the consumer goods industry drive revenue growth and collaborate across teams on one connected platform. Having a centralized system that supports integrations with ERP, POS, and other data sources is critical. Salesforce TPM helps accelerate the monitoring of key metrics and improve ROI and forecasting in real time. Salesforce Post-event analysis allows brands to conduct an analysis to determine the ROI achieved for individual activities, contracts, programs, and account plans. If you are managing more than $30 million in TPM funds, you should be looking into Salesforce’s TPM solution.
Learn More about Salesforce Trade Promotion Management
- Optimize Trade Promotions with Salesforce TPM
- Manage Trade Programs Across the Entire Cycle with Salesforce Trade Promotion Management
- Consumer Goods Cloud: Trade Promotion Management: Key Features
- Launch Partner for Consumer Goods Cloud TPM Pilot
- Digitize, Unify, and Integrate Your Trade Promotion Management with Salesforce
Consumer Goods Cloud Consultant Leader
Over the years, we have been using our experience to help digitally transform the consumer goods industry. As our main industry focus, we are proud to be on the Consumer Goods Cloud Partner Advisory Board, in addition to being the exclusive US launch partner of the Salesforce Trade Promotion Management (TPM) Pilot.
About Corrao Group
Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!