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What Are Incremental Sales and How to Drive Them June 07, 2024 (0 comments)


New York, NY--Every sale matters in e-commerce. Each transaction contributes to your revenue and reflects the effectiveness of your marketing strategies, product appeal, and customer trust.

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However, beyond regular sales lies an often underutilized potential: incremental sales. An article by Extend states that these additional sales, generated through targeted marketing efforts, can significantly boost your brand’s revenue and market presence.

Understanding Incremental Sales

What Are Incremental Sales?

Incremental sales are sales generated from specific marketing activities beyond regular sales. This metric is crucial for assessing the effectiveness of your marketing efforts.

Base Sales vs. Incremental Sales

Base sales are the sales achieved without promotional activities. Incremental sales are the additional sales from specific marketing efforts.

Incremental Sales vs. Incremental Revenue

Incremental sales focus on sales volume due to specific marketing activities, while incremental revenue considers the additional money earned from those sales.

The Importance of Calculating Incremental Sales

As noted in the Extend article, tracking incremental sales helps e-commerce brands in the following ways:

How to Calculate Incremental Sales

Retailers and business owners can calculate incremental sales with this formula:

Incremental Sales=Total Sales During Marketing Activity−Baseline Sales

For example, if a promotional campaign results in 10,000 units sold, and the baseline sales are 7,000, the incremental sales are 3,000.

Four Strategies to Drive Incremental Sales

1. Introduce New Products

Launching new products can attract new customers and entice existing ones. For example, if a skincare brand unveils a new line and sees a sales increase, it indicates incremental sales.

2. Upselling

Encourage customers to purchase a more expensive version of a product or add complementary products. For instance, suggesting a premium pair of jeans can boost sales.

3. Cross-Selling

Suggest products that complement what customers are already interested in. For example, offering a product protection plan can increase sales if a customer buys a TV.

4. Effective Marketing Campaigns

Use channels like social media, influencer, and affiliate marketing to promote products. For instance, a fashion brand can use Instagram stories and partner with influencers to boost sales.

Learn more in the original article in Extend.

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