Practical promotion economics

A positive center and a fragile baseline

Start from +€1,700 contribution and vary the no-promotion benchmark and campaign volume to locate the decision threshold.

Entirely synthetic case. The expected baseline and commercial inputs are deliberately supplied assumptions.

The decision

Which plausible assumption reverses the conclusion?

Product–campaign rows1
Contribution change€1,700
Gross unit lift80.0%

Source inputs

Campaign / productExpected baseline unitsPromotion unitsRegular / promotion priceVariable unit cost
Example refill bundle
Synthetic sensitive repeat decision
1,0001,800€50 / €40€25

What to inspect

Open a row’s full contribution bridge, check the day-window alignment and cost allocation, then vary the expected baseline and response in Scenario studio. The portfolio result includes the recorded refunds, supplier support and displacement; unrecorded effects remain excluded.

Read the accompanying decision guide

Interpretation limits

The figures are generated from the same deterministic engine used by the workbench. They are not evidence from a merchant or a randomized test. A supplied baseline can make an offer look attractive or unattractive, so the baseline deserves the same scrutiny as the campaign’s realized sales.

How to read this case

The central contribution difference is +€1,700. At 1,800 campaign units, a no-promotion baseline above 1,068 units reverses its sign.

Case-specific assumptions

  • The baseline and volume ranges in the guide are sensitivity assumptions, not a confidence interval.
  • Price and volume sliders are independent; the workbench does not estimate demand from a price change.

Download the portable project JSON ↓