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TERM
Percent Incremental
Share of total sales that are incremental.
Definition
Percent incremental equals incremental sales divided by total sales times 100.
How to Calculate
Compute incremental, divide by total, multiply by 100.
Why it Matters
Shows reliance on promotions.
Key Advantages
Helps balance base and promo sales.
Example
$20,000 incremental on $100,000 total equals 20 percent.
Use it to
Estimate the share of total volume that is incremental versus base to judge program quality. Increase the percent incremental by adjusting depth, targeting, or timing so subsidy falls and net lift rises.
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