{"id":12,"date":"2021-08-26T16:34:47","date_gmt":"2021-08-26T16:34:47","guid":{"rendered":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/dictionary\/incremental-volume\/"},"modified":"2022-11-16T19:24:47","modified_gmt":"2022-11-16T19:24:47","slug":"incremental-volume","status":"publish","type":"dictionary","link":"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/dictionary\/incremental-volume\/","title":{"rendered":"Incremental Volume"},"content":{"rendered":"

One of the best ways to build sales as a CPG company is to run promotions. As a smaller brand, you need promotions to help entice new customers to try your products and see what sets you apart. While these campaigns can be pricey, it\u2019s imperative to find cost-effective solutions.<\/span><\/p>\n

So, are your marketing tactics working as well as they should? Or are they just cutting into your bottom line? It\u2019s far too easy for small brands to \u201cspend themselves off the shelf.\u201d You can find out by looking at your <\/span>incremental volume<\/span>. Don\u2019t worry if you don\u2019t know what that is \u2013 we\u2019re about to break it down.<\/span><\/p>\n

Incremental Volume<\/b> Definition<\/b><\/h2>\n

Your sales volume is the total amount of products you\u2019re selling in a given week. When you run a <\/span>promotion<\/span><\/a>, you will likely get a boost in your overall sales. That boost is tracked as <\/span>incremental volume<\/span>.<\/span><\/p>\n

What\u2019s crucial to point out is that this volume is only the difference between your regular sales (aka non-<\/span>incremental volume<\/span>) and your sales during the promotion.<\/span><\/p>\n

So, let\u2019s say that you usually sell 100 packages of product X in a given week. During your promotion, you sold 110. In this case, your <\/span>incremental volume<\/span> is 10.<\/span><\/p>\n

What is Non-<\/b>Incremental Volume<\/b>?<\/b><\/h2>\n

Non-<\/span>incremental volume<\/span><\/a> is the number of sales you would have sold in a given week with or without a promotion. Using our above example, if you run a promotion and your sales volume doesn\u2019t increase at all, you can tell that your marketing push isn\u2019t getting any traction.<\/span><\/p>\n

Knowing the difference between these numbers helps you pinpoint and track your promotional success. Without having a baseline, it\u2019s impossible to tell if a promotion is actually helping or hurting your brand.<\/span><\/p>\n

What Does <\/b>Incremental Volume<\/b> Mean in Business?<\/b><\/h2>\n

While the value of this metric is pretty apparent, there\u2019s a lot of data that goes into your <\/span>incremental volume<\/span> value. Here are three points to consider when looking at this information.<\/span><\/p>\n

Incremental Volume<\/b> Doesn\u2019t Account for Everything<\/b><\/h3>\n

Unless your company only sells one product in one store, many different factors can affect your sales volume. When it comes to <\/span>incremental volume<\/span>, NielsenIQ only looks at three components:<\/span><\/p>\n