If you run promotions through distributors and retailers, you already know how critical they are. Trade promotions can push sales, boost visibility, and create loyalty in crowded markets. Yet, many executives spend millions on trade promotions but struggle to answer one simple question: What was the real return on that investment? Measuring trade promotion ROI is one of the toughest challenges today. But with the right technology, it does not have to be.
The Pain Point: Why Trade Promotion ROI Is Difficult
The main issue is data. Promotions flow through primary, secondary, and even tertiary sales. Each distributor handles them differently. Some retailers record sales numbers on time, while others delay. Data is often missing, messy, or inconsistent.
At the end of the month, your team tries to piece it all together. However, you get scattered spreadsheets and rough guesses. Thus, reliable insights are missing.
Consider a FMCG company in India as an example. They launch a nationwide discount scheme for retailers. On the surface, it looks like a win as orders spike during the campaign. But later, the finance team notice gaps. A few distributors have over-claimed and others send claims late.
When the company tries to match sales lift with actual costs, the numbers do not add up. The result? No clear measure of ROI.
The Solution: How Technology Can Fix This
This is where a Scheme Management Software changes the story. Instead of managing promotions manually, you define the scheme rules in the system. The app then tracks performance in real time, across every channel. Claims are validated automatically. Moreover, you see which promotions worked, which distributors performed, and where money was wasted.
Instead of waiting weeks for reports, you can check on your phone how a scheme is performing today. You can compare two promotions side by side. Furthermore, you can even stop a poorly performing scheme mid-cycle before it drains your budget. That is the level of control a scheme management platform provides.
A Real Advantage for Business Leaders
Top executives no longer rely on guesswork. With accurate ROI tracking, you invest only in promotions that deliver results. Your CFO sees clean numbers while your sales head gets a transparent view of performance. Furthermore, your distributors trust the system because claims are processed faster and with fewer disputes.
In today’s competitive market, clarity is not just helpful but also essential. Companies that fail to measure ROI properly will keep burning money on schemes that do not work. Those who use a structured Scheme Management Software will gain the upper hand.
So, why is trade promotion ROI hard to measure? Because data is scattered, claims are complex, and manual processes cannot keep up. How do you fix it? By adopting a tool built for the job. With Zed-Schemes™, you simplify scheme planning, track results in real time, and measure ROI with confidence.
If you want to make every trade promotion count, the time to act is now. Explore how Zed-Schemes™ can help you turn trade promotions into profitable investments.