In marketing, incrementality is a metric of how marketing and advertising increase desired conversion rates, such as revenue, website traffic, and profitability. It refers to growth, traffic, and revenue that can be attributed to marketing efforts.
Incrementality can point to how much a certain campaign, channel, or project affected metrics like revenue and traffic. The point of incrementality is to prove the impact of a marketing variable by isolating it. Incrementality can be measured in a few ways, including holdout tests and multivariate tests.
Example: To test the incrementality of a new newsletter design, Cole ran a holdout test with two subject groups. He found the new design increased click through rates by 6%.
A marketing method products and services are not directly sold to customers, but rather through partnered organizations, like a reseller, agency, or affiliate marketing partner.
Indirect sales are often used in conjunction with direct sales channels. Utilizing indirect sales can increase scale rapidly for B2B SaaS companies since they tap into the reseller or partner's existing network while also decreasing overhead costs.
Example: Indirect sales mean that there is no direct contact between the software company and the buyer.
An indirect channel is a sales channel in which goods and services are sold indirectly from the producer through independent middlemen to final users. If there is any intermediary between the producer and the end user, the sales channel can be considered indirect. To contrast, direct channels involve purchasing by the consumer directly from the producer.
Reseller programs are a kind of indirect channel wherein partners sell a producer's product on their behalf. Indirect channels allow producers to sell more product by reaching a wider audience through their partners and outsource the sales process to their teams.
Example: An indirect channel allows users to easily find your services through wholesale distributors that may already have a built-in customer base.
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