What Is Promotion Compliance?
In the Consumer Products industry, promotion compliance occurs when promotional activities align with planned trade investments. It involves tracking and verifying that promotional resources are used as intended, targeting the right audience and delivering the desired outcomes. By maintaining promotion compliance in trade spend, companies can optimize their investments, maximise profits, and foster mutually beneficial partnerships with retailers.
The Challenge
Consumer Product companies spend billions of dollars on trade promotions annually, often up to 20% of their revenue. According to McKinsey & Company, over 70% of these promotions are unprofitable. This level of financial loss is unacceptable, especially at a time when margins are already being hit harder than ever.
To control margins and drive revenue, Consumer Product brands need to maximise their effective trade spend, understand customer needs and ensure flawless in-store promotion compliance. Industry research has shown that just 40% of in-store promotion displays are executed properly, meaning 60% are not. This level of disconnect between planning and execution can also create inventory overflows and issues along the supply chain, wasting stock and ultimately impacting the relationships with the retailer.
The Solution
Aforza Guarantees Promotion Compliance
Aforza enables field sales, merchandising, marketing & category management teams to assign tasks, receive proof of compliance, and analyse performance across locations to ensure promotions are being executed accurately and effectively.
With Aforza, field teams can confirm compliance in-store in real-time. How?
Capture images with ’locked’ visit data (location & time)
Automatically watermark with certified compliance stamp
Tag images with actionable attributes
Trigger workflows to drive promotion actions
Submit accurate claims to maximise cash flow speed
The Business Impact
Aforza customers are guaranteeing promotion compliance, empowering them to:
Increase the effectiveness of trade promotions: Ensuring retailer compliance at a store-by-store level to maximise ROI and reclaim up to 70% of wasted trade investment.
Unblocked cash flow: Guaranteeing promotional payments with watermarked “Proof of Performance” worth around $3000/image.
Maximise revenue opportunities: Increasing brand visibility and limiting out-of-stocks to secure up to 5% of missed revenue.
Useful Resources
Learn more about how Aforza Studio can support your company by guaranteeing promotion compliance in-store to accelerate margin control across your business. Here is some suggested content to get started: