We ran a sales campaign, during which we sold more, but with lower margins – was it really profitable?”
When considering a campaign, it’s worth thinking about:
a) whether there’s enough time to properly plan the campaign,
b) if the axis of marketing – sales – purchasing is working effectively,
c) how product availability and timing are ensured,
d) how often the campaign can be repeated, and most importantly,
e) how to calculate the actual return on the campaign.
In profitability assessment, it’s particularly important to consider how product/service sales develop in the weeks/months following the campaign! This period is called the campaign’s “slump period.”
And what about other effects – did the campaign bring new customers, improve customer loyalty, increase brand awareness, and how did competitors react?
As the image suggests – it’s worth spending a bit more time and resources on planning.