help · campaigns
Understand the financial terms.
Definitions used in every diagnostic, brief, and scenario.
What you need.
- Nothing. This is reference information.
Steps
- Baseline: what the product would sell with no campaign, over the same period and definitions.
- Incremental: sales above the baseline.
- Net revenue: revenue after discounts and before variable costs.
- Contribution: net revenue minus variable costs.
- Cannibalisation: sales the campaign takes from your own existing products.
- Contribution after campaign costs: incremental contribution, minus contribution lost to cannibalisation or displaced demand, minus all campaign costs.
- Break-even: the incremental volume at which contribution covers campaign costs. It is shown only where each incremental unit earns a positive contribution.
If something goes wrong
- If your company defines margin differently, state the definition in Product and economics so costs are not counted twice.
More on campaigns
- Set up a campaign. Create a campaign and enter the facts the diagnostic needs.
- Work with missing data. What happens when you do not know a number yet.
- Upload briefs and past results. Use your own documents as evidence.
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