Refresh seasonality

You can refresh the seasonality model used by Sales IQ to reflect an updated configuration. The seasonality model must include two previously-completed calendar years. When configured to those prior years, the seasonality model will not produce different results unless you change any of the following settings:

• Seasonality Volume Metric
• Seasonal Segment
• Seasonal Product Group
• Aggregation Parameters

To refresh the seasonality model, go to the Aggregated Time Periods worksheet. Depending on your user permissions, the worksheet will resemble the following image.

Select the Run Seasonality worksheet action. This action updates Sales IQ seasonality factors based on the aforementioned settings.

Seasonality Volume Metric

Seasonality Volume Metric is a calculated column in the Sales IQ > Engine Config > Sales IQ Transactions Aggregated worksheet. This column defines the volume metric that Sales IQ uses to test for seasonal patterns.

The following default calculation uses revenue normalized with any applicable currency conversions. Update this calculation as needed.

(CASE WHEN ([Currency Conversion Rate] > 0)
THEN [Currency Conversion Rate]
ELSE 1
END)
* [Revenue]

To edit Seasonality Volume Metric:

1. Go to the Sales IQ > Engine Config > Sales IQ Transactions Aggregated worksheet.
2. Select Column and KPI Settings. This displays the Column and KPI Settings sidebar.
3. Go to the Column tab and select the Seasonality Volume Metric card.
4. Edit the Column definition text box as desired.
   
5. Select Save.

To learn more about editing KPI cards, read Manage KPI cards.

Seasonal Segment

Seasonal Segment is a calculated column in the Sales IQ Customers worksheet. This column specifies the level of detail at which Sales IQ tests customers for seasonal patterns. As necessary, edit the column’s calculation to use any available customer fields that might best isolate seasonal trends by customer industry, region, etc.

To edit Seasonal Segment:

1. Go to the Sales IQ Customers worksheet.
2. Select Column and KPI Settings. This displays the Column and KPI Settings sidebar.
3. Go to the Column tab and select the Seasonal Segment card.
4. Edit the Column definition text box as desired.
   
5. Select Save.

To learn more about editing KPI cards, read Manage KPI cards.

Seasonal Product Group

Seasonal Product Group is a calculated column in the Sales IQ Products worksheet. This column specifies the level of detail at which Sales IQ tests products for seasonal patterns. As necessary, edit the column’s calculation to use any available product attributes for a product grouping level. Sales IQ uses this product grouping level to test for seasonal trends.

To edit Seasonal Segment:

1. Go to the Sales IQ Products worksheet.
2. Select Column and KPI Settings. This displays the Column and KPI Settings sidebar.
3. Go to the Column tab and select the Seasonal Product Group card.
4. Edit the Column definition text box as desired.
   
5. Go to the bottom-right corner of the modal and select Save.

To learn more about editing KPI cards, read Manage KPI cards.

Aggregation Parameters

To view these settings, go to the Aggregation Parameters worksheet. Depending on your user permissions, the worksheet will resemble the following image.

Sales IQ’s seasonality model uses the following parameters:

• Seasonality_Year_1—Specifies the first calendar year of historical transaction data used to test for seasonal patterns.
• Seasonality_Year_2—Specifies the second calendar year of historical transaction data used to test for seasonal patterns.
• Seasonality_Hierarchy_First_Level—In the seasonality model’s internal hierarchy, this parameter defines the impact order of your transaction data’s product groups and customer segments. Sales IQ then uses this parameter to define the appropriate solve level for detecting seasonality factors.
  Sales IQ doesn’t save seasonality factors based on too-sparse data. Sales IQ uses the first level parameter at the top of the hierarchy, and the alternative attribute at the second/bottom level of the hierarchy. Valid values for this parameter are “Seasonal_Product_Group” and “Seasonal_Customer_Segment.”
• Seasonality_Hierarchy_Min_Yearly_Volume—Defines a minimum threshold on the annual volume that must be observed in Seasonality_Year_1 and Seasonality_Year_2. Sales IQ uses the observed annual volume for the seasonality model’s internal hierarchy.
  The Seasonality Volume Metric defines the annual volume that can be observed.
• Seasonality_Hierarchy_Max_Year_Difference—Defines a maximum threshold on the percentage change that must be observed between Seasonality_Year_1 and Seasonality_Year_2, and vice versa. Sales IQ uses the observed percentage change for the seasonality model’s internal hierarchy.
  For example,

  If you set the Seasonality_Hierarchy_Max_Year_Difference to 0.8, then the following ratios must both be ≤ 1.8:

  • Seasonality_Year_1 / Seasonality_Year_2
  • Seasonality_Year_2 / Seasonality_Year_1
• Seasonality_Hierarchy_Min_Frequency—Defines a minimum threshold on the number of months that must be observed in both Seasonality_Year_1 and Seasonality_Year_2. Sales IQ uses the observed number of months for the seasonality model’s internal hierarchy.

Sales IQ’s seasonality model also uses the Seasonality_Min_Correlation parameter. This parameter determines the model’s sensitivity to detecting seasonality in products. Sales IQ defines this sensitivity as a minimum threshold for the Pearson correlation coefficient (PCC) that the seasonality model uses for Seasonality_Year_1 and Seasonality_Year_2.

The seasonality model uses this coefficient to observe average variations of seasonal product group and customer segment combinations within the two calendar years. The model then saves these variations as Adjustment Factors in the Seasonality Factors worksheet.

When this threshold is not met, the seasonality model saves a Seasonal Product Group + Seasonal Customer Segment combination in the Seasonality Factors worksheet with an Adjustment Factor of 1.0.