Almost 60% of fmcg companies do not have a process to evaluate promotions consistently across their business, according to a new survey by Intelliprice.
And 42% of directors said the return on investment from promotional investment fell below expectations.
“If companies do not have one consistent method to evaluate promotions then how can they be compared?” said Intelliprice director Andrew Mallison.
“If there is no consistency, there is generally no process and no controls, so the accuracy and reliability of all promotion evaluation is probably questionable.”
He added: “One financial director we spoke to, responsible for nearly £100m of turnover, stated that prior to his arrival there was no coherent method for evaluating promotion activity.
“Now that this is in place he estimates that there has been a 15% improvement in ROI on promotions, leading to a 7% increase in net profit.”