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Want to reduce and optimise your customer trade spend investment?

June 23, 2023 By Tracey Johnson



We’ve been sharing our top 10 tips to reduce and optimise trade spend to improve customer profitability and ensure the best return on your investment. Here’s a handy recap all in one place!

#1 Customer order cycles should reflect real shopper demand, so you focus on sell out activity and invest at the right time for the best results

Trade Spend Top Tip #1 : Customer order cycles should reflect real shopper demand

#2 Negotiate to invest trade spend based on what our customers sell out, not what they buy in therefore spend as effectively as possible

Trade Spend Top Tip #2 : Invest in and focus on customer sell out stock

#3 Link all customer trade spend to customer category and brand performance so we get ‘something for something’

Trade Spend Top Tip #3 : Link all customer investment to performance

#4 Increase our speed to market for new initiatives, so we can generate weeks of incremental sales for the same trade spend

Trade Spend Top Tip #4 : Get to market quickly for incremental sales at the same spend

#5 Focus on spending effectively for distribution/ reach and generate incremental sales from increased points of purchase in our customer, for the same trade spend

Trade Spend Top Tip #5 : Focus on distribution depth

#6 Focus on the right tactics and commensurate level of investment for all non-promoted sales, so that every non promoted unit also generates a profitable return on our investment

Trade Spend Top Tip #6 : Deliver high return on investment with the right tactics for non promoted sales

#7 Limit the amount of forward buying you allow your customer so you can reduce the overall proportion of volume sold at a discount

Trade Spend Top Tip #7: Limit forward buying & levels of discounted stock being sold

#8 Partner with customers on fewer, bigger promotional events to spend effectively for awareness, excitement and more shopper purchases

Trade Spend Top Tip #8 : Reach more customer’s shoppers effectively, with fewer bigger events

#9 Select the right promotional tactics to achieve our promotional objectives with a positive category result, and generate a profitable return on our trade spend

Trade Spend Top Tip #9 : Focus on the right tactics to achieve our promotional objectives

#10 Ensure we have robust customer activity monitoring and compliance systems in place so we can reduce trade spend for non-compliance and not waste any investment

Trade Spend Top Tip #10 : Reduce spend for non compliance

Filed Under: Opinion

About Tracey Johnson

Sales and Marketing Mastermind at CUSTOMERAIDE® | Creative Director at Aide Online | Find me on LinkedIn or Twitter

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