How is the estimated incremental revenue calculated?
The campaign’s estimated incremental performance is an AI-based calculation to provide evidence that a campaign was beneficial compared to doing nothing.
To estimate it, a machine learning model uses historical sales data of all promoted products to approximate the expected sales and compare it with actual sales during the campaign period.
🔢 How do we calculate incremental sales value?
We use predictive algorithms to forecast the orders the promoted products would have had without the campaign.
Then, by analyzing the average units sold per order and price per unit, we calculate the forecasted sales value.
At the end of each campaign, we compare this with the actual sales value.
✨ Formula:
How to understand how important incremental revenue is?
Both the expected sales and the incremental sales value are visualized on the Marketing Impact results page.
Example: In the depicted campaign, incremental revenue was 22% of total sales.
That means €8,078.65 out of the €37,512.68 total sales value came directly from the marketing activation and would not have happened otherwise.