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Home / Glossary / What is lift?

November 6, 2023

What is lift?

What Is ‘Lift’ in the Context of Sales and Marketing Campaigns?

Lift refers to increased sales or performance due to a specific marketing or advertising campaign. It measures the direct impact of marketing activities on sales revenue. A campaign provides a “lift” when it results in more sales than would have been achieved without it. This term is often used to evaluate the effectiveness of promotional strategies and tactics. For instance, if a product’s sales increase by 20% during a marketing campaign, that increase is attributed to the campaign’s lift. It’s a key metric for marketers to understand the return on investment (ROI) for their efforts.

Understanding the Sales Lift Formula and Its Components

The formula for sales lift helps determine the effectiveness of a marketing campaign. It’s a way to measure the increase in sales attributable to the campaign.

Basic Sales Lift Calculation

Here’s a simple breakdown of the formula:

Sales Lift=(Total Sales During Campaign−Baseline Sales)/Baseline Sales×100%Sales Lift=(Total Sales During Campaign−Baseline Sales)/Baseline Sales×100%

Decoding the Variables

  • Total Sales During Campaign: The total sales recorded while the campaign was active.
  • Baseline Sales: The average sales you’d expect without any marketing efforts.

Delving into Incremental Sales Lift

For incremental sales lift, which factors out natural sales growth and other variables, the calculation adjusts to focus on the incremental change:

Incremental Sales Lift=(Sales with Campaign−Sales without Campaign)/Sales without Campaign×100%Incremental Sales Lift=(Sales with Campaign−Sales without Campaign)/Sales without Campaign×100%

In this scenario, ‘Sales without Campaign’ often comes from a control group or historical data.

Applying the Formula

When a marketer runs a promotional campaign, applying the sales lift formula clarifies the actual sales metrics, distinguishing between a superficial spike and a genuine uplift in purchasing behavior.

A Real-World Example

Imagine an app marketing campaign results in 150 total sales, with baseline sales (or control group sales) at 100:

Sales Lift=(150−100)/100×100%=50%Sales Lift=(150−100)/100×100%=50%

This result indicates a 50% increase in sales due to the campaign, showcasing its success and providing valuable insights for future marketing strategies.

How Can Marketers Use Lift Analysis to Measure Success?

Lift analysis is a beacon for marketers aiming to quantify the success of their campaigns. It’s a clear-eyed approach that measures the incremental lift – the actual effect marketing efforts have on sales. This methodology doesn’t just tally total sales; it distinguishes the direct impact of a campaign from the ebb and flow of everyday business. With lift analysis, marketers can pinpoint whether a number spike is a flash in the pan or a sustainable climb. Here’s the step-by-step breakdown:

Defining the Baseline for Clear Metrics First, a marketer sets the stage with baseline sales. This compass guides the ship: knowing where you are to measure how far you go.

Implementing the Promotional Drive Enter the promotional campaign. Its heartbeat? Incremental sales. This is where the journey from mere visibility to actual sales unfolds.

Quantifying the Impact Here’s the crux: calculating lift. It’s not just any number—it’s the true impact of your marketing effort, reflected in the increase in sales.

Drawing Comparisons with Control Groups Imagine two worlds—one touched by your campaign, one not. The difference in conversion rates between these—the test and control groups—tells you whether the lift is just a ripple or a wave.

Is it gauging the Longevity of Campaign Effects? What about next month? Next year? Lift analysis doesn’t just snapshot; it predicts. It gives a peek into whether these new customers are just passing by or here to stay.

Refining Future Strategies Lastly, a lift isn’t just a rearview mirror. It’s a lens to refine future campaigns, a tool that sharpens your marketing strategies, ensuring the next promotion is even more effective in driving sales.

What Are the Reasons Why Lift Is a Crucial Metric for Marketers?

Lift, in the marketing realm, is not just a buzzword—it’s the litmus test of a campaign’s efficacy. Here’s why it’s indispensable:

1. Quantifying the Incremental Impact

Lift highlights the incremental sales lift—sales that wouldn’t have happened without the campaign. It tells marketers about the percentage of sales increase directly attributable to their efforts.

2. Understanding Customer Engagement

A campaign’s success isn’t just about the raw amount of sales. It’s about engagement and conversions. Lift helps assess if customers who saw your ads were compelled enough to take action.

3. Gauging Marketing Effectiveness

With lift analysis, marketers can measure the success of various marketing strategies, making it a valuable tool for any marketing department. It’s a way to look beyond the immediate response rate and understand the campaign’s impact.

4. Making Data-Driven Decisions

Lift analysis is a data-centric approach. It provides key metrics and key performance indicators that are essential metrics for making informed decisions. This is especially useful in digital marketing, where analytics play a significant role.

5. Identifying the Most Effective Strategies

By measuring lift over control groups, marketers learn which tactics work and which don’t, allowing them to increase the effectiveness of future campaigns.

By focusing on the lift, marketers can ensure they’re not just driving average sales but are creating strategies that lead to an incremental lift in their marketing and advertising efforts.

How Do You Calculate Lift to Gauge Incremental Sales?

Calculating lift is more art than arithmetic; it’s a dance of figures that tells you if your campaign has honestly swayed your audience. Here’s the essence, without fluff, of how you’d do it:

Setting the Stage with a Control Group

First, establish a test group and a control group—the former sees the campaign, the latter doesn’t. This is crucial for understanding the immediate impact and for measuring sales with accuracy.

Launching and Monitoring the Campaign

Then, roll out your campaign. If it’s an in-app messaging campaign or a discount campaign, track the response rate. Say your sweaters are 20% off; you’ll monitor how many take the bait.

The Calculation Itself

Here’s where it gets technical. Lift is calculated by comparing the actual sales metrics of the test group against the control group. Measure sales lift by taking the difference in sales between the two groups, then divide by the control group’s sales to get the percentage of increase.

Interpreting the Data

Once you have your figures, you interpret them. A positive lift indicates success; you’ve made an impression. But remember, life isn’t just about the spike in incremental sales lift; it’s a mirror to the marketing raise your mobile marketing campaigns have achieved.

Remember, lift can also help refine future marketing strategies. It’s a valuable tool—an insider’s peek into what works and needs rework in the intricate world of app marketing and mobile messaging.

Now, if you’re a data scientist or a marketer who experiments, calculating lift goes beyond just numbers. It’s about understanding the stories behind the sales numbers—the incremental lift and the long-term app growth it signifies.

What Is Incremental Lift, and How Does It Differ from Total Sales Lift?

Incremental Lift: The Fine-Grain Detail in Sales Analysis

Incremental lift zooms in on the direct impact of your marketing. Imagine a free trial offering nudges and 100 sign-ups. If 10 of those are traced back solely to the offer—that’s your incremental lift. It’s about the sales because of the campaign, not just during it.

Total Sales Lift: The Big Picture

Conversely, the total sales lift includes all the sales during the campaign period. If your media app runs a free 7-day trial, every subscription is counted, giving you the broader impact but not the campaign’s precise punch.

Why Incremental Tells a Truer Tale

The total lift can be misleading—a number inflated with sales that would have happened during the campaign. Incremental lift strips away the baseline, offering the metrics that matter to gauge immediate results and strategies that are most effective.

Applying This in Marketing

For marketers, understanding these terms is vital. When deploying an in-app messaging campaign to offer a deal where sweaters are 20% off, not every sale is a victory lap for the campaign. Incremental lift separates the power of the promotion from the noise of average sales. It’s what helps you understand what truly drives customer actions, making it an essential component in marketing promotions and new marketing tactics.

In Practice: Measure What Matters

Using these insights, a marketer can accurately measure the impact of specific efforts. Lift using this approach can be a valuable asset in your arsenal. It’s a way of ensuring that when it comes to measuring, you’re not just counting heads—you’re making each headcount.

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About Brian Meert

Brian Meert is the CEO of AdvertiseMint, a full service digital advertising agency and regular contributor to our Advertising Blog. Brian has written in-depth articles and marketing infographics that are used by marketing executives around the world. He writes about topics relating to Meta Ads Agency, Instagram Ads Agency, TikTok Ads Agency, Snapchat Ads Agency, YouTube Ads Agency , Amazon Ads Agency, Google Ads Agency, and Pinterest Ads Agency. After completing his MBA in marketing, Brian has spent the last 20 years working in digital marketing and helping clients like Coca Cola, Newegg, Grant Cardone and Consumer Affairs run profitable advertising.

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