Building Trust for TPM Data: The Key to Full-Scale Adoption

Thus, increasing the complexity of analytics does not always improve efficiency. Instead, it can magnify errors, leading to a decline in solution adoption, a shift back to manual spreadsheet-based analysis, stagnation in promotional effectiveness, and a negative impact on ROI from TPM/TPO investments.

Why Do TPM/TPO Solutions Produce Inaccurate Results?

Managing and optimizing promotions is inherently complex. Successful implementation depends on three key components:

• High-quality input data and proper integration.
• Correct analytical models and algorithms.
• Customization of the solution to fit business needs and processes.

Only when all three components are properly configured do users achieve 100% accurate results. This saves time, enhances data completeness, and ensures a single version of the truth across the organization.

However, implementing more advanced TPO/RGM solutions, which consist of multiple layers, significantly increases the project’s complexity. If even one element does not function properly, the overall data quality drops, and trust in the system decreases, even if some of its features work correctly.

There are several reasons why a solution may not perform as expected, including low-quality input data, insufficient business analysis conducted before implementation, ineffective change management, and the use of incorrect or overly rigid forecasting models. Additionally, deploying the solution across all levels at once complicates error identification and correction, making the process more challenging and time-consuming.

How to Ensure Effective TPM/TPO Implementation and Adoption?

A phased approach to TPM/TPO implementation – used by SoftServe Business Systems – can mitigate these challenges. This method breaks the overall project into phases, where each phase functions as an independent, self-sustaining project that meets the following criteria:

This approach may seem slower, but it provides greater control over implementation timelines, accelerates ROI, and ensures reliable data accuracy before introducing advanced analytics like AI/ML.

A company gradually expands its functionality and expertise in trade promotion management and optimization, moving to the next phase only when 100% data accuracy has been achieved at the previous level. In this way, each lower layer of the overall system serves as a solid foundation for more advanced analytical capabilities.

Many businesses aim to implement as many features as possible as quickly as possible, including AI-driven analytics. However, more than half of companies struggle with data issues, making the rapid deployment of advanced features unrealistic. A step-by-step implementation helps build the necessary data foundation for future AI/ML adoption.

What If TPM/TPO Was Implemented Incorrectly?

According to Promotion Optimization Institute (POI), in 2024, 79% of FMCG companies utilized TPM/TPO solutions to manage trade effectiveness. However, 86% of them continued to rely on Excel for trade planning and analysis. This discrepancy indicates that many companies either do not fully trust the data generated by their TPM solutions or find their functionality insufficient for addressing their specific business needs.

SoftServe Business Systems encountered a case in which a customer faced significant challenges with a previously integrated TPM solution.

The issue was not with the system’s capabilities – the solution itself was a powerful and advanced tool. However, it had not been customized to accommodate the company’s specific business processes and data architecture. As a result, several fundamental problems emerged:

• Low data quality led to a lack of trust from users.
• User dissatisfaction resulted in an extremely low Net Promoter Score (NPS) of -80.
• System adoption remained critically low, with minimal engagement from the users.

To address these issues, SoftServe Business Systems initiated a customization project focusing on the following key areas:

• Unifying all trade promotion business processes within a single system to ensure consistency.
• Enhancing data completeness and quality to improve accuracy and trust in decision-making.
• Implementing an agile approach, allowing the solution to be rapidly adapted to evolving business needs.

Following the successful customization and optimization of the TPM system, the following improvements were observed:

Transformation of the TPM solution into a trusted and widely used tool for trade promotion management and optimization.

• NPS growth of over 120 points, significantly surpassing the industry benchmark.
• Substantial increase in system trust and user adoption, ensuring widespread engagement.
• 2% optimization of promo budgets, enhancing cost efficiency.
• Flexible and fast customization, allowing for ongoing adjustments to business processes.
• 98% data accuracy and completeness, ensuring reliable reporting and analytics.
• Integration of TPM as a key data source for Revenue Growth Management (RGM) analytics, strengthening strategic decision-making.

In this case, the core issue was not the TPM system itself, but its lack of customization to meet the company’s operational requirements. Instead of replacing the system, targeted refinements and process alignment enabled the solution to deliver its intended value effectively.

But if the system’s architecture is ineffective, companies may need to evaluate alternative solutions. However, such a transition necessitates significant financial investment and requires a structured implementation strategy to avoid replicating past challenges.

From TPM Adoption to AI-Driven Transformation

• TPM and TPO solutions offer substantial benefits to businesses, including:
• Enhanced trade promotion efficiency, leading to increased revenue and profitability.
• Reduction in promotional spending, while improving effectiveness.
• Significant time savings for employees, allowing them to focus on strategic decision-making rather than manual adjustments.

However, these benefits are only fully realized when the solutions are adopted at scale, effectively integrated into business processes, and serve as the single source of truth within the organization.
To determine whether your company is fully leveraging its TPM/TPO system, consider the following:

• Do employees responsible for promotions rely on additional tools, such as Excel, for trade planning and analysis?
• Do all key functions – Sales, Finance, General Management, and Supply Chain – have access to a single, unified version of the truth (e.g., up-to-date sales plans)?
• Is the Trade Promotion Management solution fully integrated with other planning and financial tools used within the organization?

If the answer to any of these questions is “no,” your business is likely not extracting the full value from its TPM/TPO.

This may necessitate system optimization, employee training, or process enhancements to improve adoption and effectiveness. However, if the answer to all questions is “yes,” congratulations, you are ready to leverage advanced analytics, machine learning, and automation to further optimize trade promotion effectiveness and revenue growth in the new era of AI-driven decision-making.