The End of the Discount? Why FMCG Brands Need to Measure Incremental Sales, Not Promotional Redemptions

The End of the Discount? Why FMCG Brands Need to Measure Incremental Sales, Not Promotional Redemptions

For decades, consumer promotions have been one of the most widely used growth tools for FMCG brands.

A discount.

A cashback offer.

A free gift.

A contest.

A reward.

The success of these campaigns has often been measured through one simple question:

“How many consumers participated?”

But participation alone does not always represent business impact.

A campaign can achieve thousands of redemptions and still fail to create incremental growth.

The more important question for marketers today is:

Did the promotion create new behavior, or did it simply reward behavior that would have happened anyway?

As brands become more data-driven, FMCG marketers are shifting from measuring only redemptions and payouts towards understanding:

• Incremental sales
• Repeat purchase behavior
• Consumer acquisition
• Category expansion
• Long-term loyalty

At RewardPort, we believe the future of consumer promotions is not about offering bigger discounts.

It is about designing smarter engagement journeys that influence measurable consumer behavior.

Key Takeaways

• Redemption numbers alone do not define promotion success.
• Brands need to measure whether campaigns create incremental consumer behavior.
• Discounts can drive short-term transactions but may not always create loyalty.
• Purchase verification and data capture help brands understand promotion effectiveness.
• Reward strategy should align with the behavior a brand wants to influence.
• The strongest promotions create a bridge between acquisition, engagement and loyalty.

Why Redemption Numbers Can Be Misleading

A high redemption rate is often considered a successful campaign indicator.

However, redemption only answers one question:

Did consumers claim the reward?

It does not answer:

• Did the promotion bring new consumers?
• Did existing consumers buy more?
• Did consumers switch from competitors?
• Did the campaign increase repeat purchase?
• Would the purchase have happened without the incentive?

For example:

A consumer who already planned to buy a product and receives cashback has created a successful redemption.

But from a growth perspective, the brand needs to understand whether that cashback created additional value.

The difference between:

Rewarding an existing purchase

and

Creating additional purchase behavior

is where promotion effectiveness is determined.

Understanding Incremental Sales

Incremental sales refer to the additional sales generated because of a campaign or intervention.

The key question:

“What additional business did the promotion create?”

Incremental growth can come through different behaviors:

New Consumer Acquisition

A promotion encourages a new consumer to try the brand.

Example:

A first-time buyer purchases because of a cashback or reward offer.

Brand Switching

A consumer chooses the brand instead of a competitor.

Example:

A customer trying a new detergent brand because the promotion provides additional value.

Purchase Acceleration

A consumer purchases earlier than planned.

Example:

A customer buys during a festive promotion instead of waiting.

Basket Expansion

A consumer buys more products or chooses higher-value options.

Example:

A reward encourages a larger purchase quantity.

Repeat Purchase

A promotion creates a reason for the consumer to return.

Example:

A loyalty journey encourages continued engagement after the first purchase.

The Difference Between Redemption and Incrementality

A successful promotion should move beyond:

Purchase → Reward → End

Towards:

Purchase → Engagement → Relationship → Repeat Behavior

Redemption is an activity.

Incrementality is an outcome.

Both are important, but they answer different business questions.

Brands that measure only redemption may miss whether their investment actually created growth.

RewardPort Framework: The Five Jobs of Promotion

Every consumer promotion should have a clear purpose.

At RewardPort, we believe promotions typically perform five strategic jobs.

1. Recruit

Bringing New Consumers Into The Category

The first role of a promotion is acquisition.

Brands can use:

• Cashback offers
• Trial rewards
• QR-based promotions
• Assured rewards
• Sampling campaigns

The objective:

Convert non-users into first-time customers.

2. Switch

Changing Consumer Preference

Promotions can encourage consumers to move from competing brands.

Effective switching campaigns focus on:

• Clear value proposition
• Relevant rewards
• Simple participation
• Strong product experience

The reward becomes the reason to try.

The product becomes the reason to stay.

3. Accelerate

Influencing Purchase Timing

Some promotions do not create new demand.

They bring forward existing demand.

Examples:

• Festive campaigns
• Limited-period rewards
• Seasonal promotions

The objective:

Encourage consumers to purchase sooner.

4. Expand

Increasing Basket Value and Category Adoption

Promotions can encourage consumers to:

• Buy more quantity
• Try additional products
• Explore premium variants

Rewards can help create opportunities for category expansion.

5. Repeat

Creating Long-Term Consumer Behavior

The strongest promotions do not end after redemption.

They create the next interaction.

Examples:

• Loyalty programs
• Reward journeys
• Membership benefits
• Personalized offers

The objective:

Move from a transaction to a relationship.

Why Discounts Alone Are Losing Effectiveness

Discounts remain useful.

But discount-led engagement has limitations.

When consumers become accustomed to offers, brands may face:

• Reduced emotional connection
• Lower differentiation
• Higher promotional dependency
• Margin pressure

A discount answers:

“Why should I buy now?”

A loyalty experience answers:

“Why should I continue choosing this brand?”

Modern consumers increasingly value:

• Experiences
• Recognition
• Convenience
• Personalized benefits
• Instant value

This is why reward-led promotions are becoming more important.

The Role of Purchase Verification in Promotion Effectiveness

A strong promotion starts with accurate purchase validation.

Verification helps brands understand:

• Genuine participation
• Consumer behavior
• Purchase patterns
• Geographic insights
• Reward effectiveness

Methods can include:

• QR code scanning
• Unique code validation
• Receipt upload
• Digital purchase verification

RewardPort enables brands to create structured consumer journeys where purchase verification connects directly with reward fulfilment and engagement.

Reward Strategy: Moving Beyond Discounts

The right reward depends on the behavior a brand wants to influence.

Different audiences respond differently.

Examples:

For Immediate Action

• Cashback
• Digital vouchers
• Instant rewards

For Engagement

• Movie tickets
• Entertainment benefits
• Food rewards

For Premium Audiences

• Travel experiences
• Lifestyle rewards
• Exclusive access

For Long-Term Loyalty

• Points
• Tiers
• Membership benefits

A reward should not only create excitement.

It should support the business objective.

RewardPort’s Perspective and Solution Approach

RewardPort helps brands design consumer promotions that connect engagement, verification and rewards.

Our solutions include:

Consumer Promotion Campaigns

Helping brands execute:

• Cashback campaigns
• QR Scan-to-Win campaigns
• Gift-with-purchase programs
• Gamification campaigns

Purchase Verification Solutions

Supporting:

• QR verification
• Code-based validation
• Digital claim journeys
• Fraud management

Reward Fulfilment

Offering rewards across categories including:

• Digital vouchers
• Cashback
• Entertainment
• Travel experiences
• Lifestyle rewards

Loyalty Integration

Helping brands convert promotional interactions into longer-term engagement through loyalty programs and personalised consumer journeys.

Practical Recommendations for FMCG Marketers

1. Define the Behavior Before Designing the Promotion

Ask:

What should change after this campaign?

• Trial?
• Repeat?
• Higher basket?
• Brand switching?

2. Select Rewards Based on the Objective

Do not start with:

“What reward should we give?”

Start with:

“What behavior do we want to influence?”

3. Capture Consumer Intelligence

Use promotions as opportunities to understand:

• Who participated
• What they purchased
• Which rewards they prefer
• How they engage afterwards

4. Measure Beyond Redemption

Track:

• Repeat purchase
• Incremental sales
• Consumer retention
• Reward effectiveness
• Cost per incremental action

The future of FMCG promotions is moving beyond discounts and redemption numbers.

Brands need to understand whether campaigns create meaningful consumer behavior change.

The most effective promotions will not simply reward purchases.

They will:

• Recruit new consumers
• Influence switching
• Accelerate purchase decisions
• Expand category adoption
• Create repeat behavior

At RewardPort, we believe successful promotions are built around one important question:

Did the campaign create growth that would not have happened otherwise?

Because the true measure of a promotion is not how many rewards were claimed.

It is the behavior that continues after the reward.