Incremental sales refer to additional sales generated by initiatives such as promotions, advertising campaigns, or other marketing activities. They are a key indicator for evaluating the effectiveness of marketing strategies. The term “incremental sales” is commonly used to analyze the results of market tests and to assess the impact of promotions based on data provided by distributors or internal sales figures. However, it is often difficult to attribute these sales specifically to a campaign or communication channel due to various factors simultaneously influencing sales.
During a promotion, incremental sales can result from several elements, such as the halo effect, increased consumption, cross-selling, or the acquisition of new customers. Further analysis is needed for a thorough exploration of the concept of incremental sales in the context of sales promotion. Incremental sales measurement can also be applied to other marketing initiatives, such as advertising, with measurement methods tailored to each lever used. Specifically, the analysis and attribution of additional sales can be facilitated by tools such as attribution models or causality studies.
A concrete example of evaluating incremental sales, also known as upsells, could be seen in television advertising campaigns.
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