Promotional cannibalization: how bad is it and what to do about it?

The most recent benchmark data from Accuris indicate that cannibalization wipes out, on average, 17% of the additional sales volume created by promotions. The value of the products being cannibalized typically constitutes even 22% of the promotional uplift, as the volumes sold at a discount supplant those sold at full price.

Strategies to reduce the cannibalistic impact of promotions should include avoiding shallow discounts, stopping ‘one size fits all’ promotions, refraining from single unit promotions, and circumventing promotions leading to a downgrade in purchase weight or value.

Accuris analyzed what factors contribute to cannibalization, which categories tend to be more affected and how to reduce unwanted cannibalization. Read the full article on Linkedin.

Cannibalisation wipes out 17% of the uplift of a promotion (Source: Accuris)