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Revenue Leak — Consumer Packaged Goods
See what a low conversion rate is costing Consumer Packaged Goods — the monthly revenue leak and the upside of closing the gap.
What this means for Consumer Packaged Goods
- Trade promotion eats 15-25% of gross sales and the lift analysis says half of it loses money — but the planning team keeps approving the same activity because Walmart said no to the cut.
- Retail execution at store level is a black box — out-of-stocks, share of shelf, and planogram compliance are reported by a field team that visits 8% of stores monthly.
- Demand forecasting accuracy at the SKU-DC level is in the 60s — production whiplash, stranded inventory, and emergency airfreight are baked into the cost structure.
Where it pays to act
- Trade promotion optimization — model lift, cannibalization, and ROI by event using POS and shipment data so the next planning cycle stops repeating losing promotions.
- Demand forecasting at the SKU-DC level using POS, weather, promotion, and event data — and the S&OP discipline to actually act on the forecast.
Adjust the inputs to match your Consumer Packaged Goods context.
Conversion funnel value
Revenue today / mo
₹3 L
Potential / mo
₹6 L
Leaking / mo
₹3 L
Annual leak
₹36 L
Extra conversions / mo
100
What this means
Revenue is leaking every month.
For Consumer Packaged Goods, moving conversion from 2% to 4% would add 100 conversions/mo and recover ₹36 L/yr in revenue that is currently leaking away.
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Revenue leak — summary
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