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Incrementality
Definition
The portion of sales or volume that is truly additional and would not have occurred without a specific activity, such as a promotion, display, or marketing campaign. Incrementality distinguishes new demand from sales that are simply shifted in timing or taken from competitors.
How It's Calculated
(Observed sales − Baseline sales) ÷ Observed sales
(or measured as incremental units or dollars above baseline)
Example
A snack brand runs a promotion that increases weekly sales from 1,000 units to 1,500 units. If 300 of those additional units are determined to be incremental (not pulled forward or cannibalized), the promotion delivered true incremental volume.
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