Lost Sales (LS) engine

The Lost Sales (LS) engine generates a summary of the recent spend pattern for your desired customer and product group combinations. The spend pattern is filtered between defined baseline and evaluation periods.

Configuration

To configure this engine, adjust the following components.

Engine Parameters

To view the parameter settings for this engine, go to the Engine Parameters worksheet. Depending on your user permissions, the worksheet will resemble the following image.

The LS engine uses the following parameters associated with an Action Type Id of LS:

• Evaluation_Periods—Specifies the number of historical aggregation periods used to calculate this action type’s Evaluation time period.
  To view an action type’s Evaluation time period, go to the Aggregated Time Periods worksheet. To update an action type’s Evaluation time period, run the Prep Data and Update Time Periods worksheet action.
• Baseline_Periods—Specifies the number of historical aggregation periods used to calculate this action type’s Baseline time period. When you run the LS engine, Sales IQ uses this parameter to only capture the duration of the Baseline time period before the start of the Evaluation time period.
  To view an action type’s Baseline time period, go to the Aggregated Time Periods worksheet. To update an action type’s Baseline time period, run the Prep Data and Update Time Periods worksheet action.

Volume Metric

To view the volume metric for this engine, go to the Sales IQ > Engine Config > Sales IQ Transactions Aggregated worksheet. Depending on your user permissions, the worksheet will resemble the following image.

The LS Volume Metric calculated column defines the volume metric used in the LS engine. The following default calculation uses seasonally-adjusted revenue normalized with any applicable currency conversions. Update this calculation as needed.

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

Product Group

To view how this engine groups products, go to the Sales IQ Products worksheet and navigate to the LS Product Group calculated column. Depending on your user permissions, the worksheet will resemble the following image.

Edit the calculated column to use any available product attributes that best define the product grouping level for the LS engine. This engine excludes products configured with a null value from engine outputs.

Outputs

To view the results of running the LS engine, go to the LS Engine Output worksheet. Depending on your user permissions, the worksheet will resemble the following image.

This engine generates results for every Customer Id + Product Group combination observed during the Baseline and Evaluation time periods. This worksheet contains the following metric fields:

• Baseline Avg Volume—Average volume for the aggregation period (weekly or monthly) during the Baseline time period. The engine measures this volume in the LS Volume Metric.
• Evaluation Avg Volume—Average volume for the aggregation period (weekly or monthly) during the Evaluation time period. The engine measures this volume in the LS Volume Metric.
• Percent Change—Percent change from the Baseline Avg Volume to the Evaluation Avg Volume. Negative values identify a decline from Baseline to Evaluation.
• Baseline Frequency—Ratio of the observed aggregation periods in the Baseline time period, to the total number of aggregation periods in the Baseline time period.
  For example,

  If the following conditions are met:

  • The Baseline time period includes 12 months total.
  • A given Customer Id + Product Group combination has observed transactions in only 10 of those 12 months.

  Then the Baseline Frequency would be calculated as 10/12 = 0.83.

• Baseline CoV—The coefficient of variation in LS Volume Metrics for a Baseline time period. This value represents the ratio of the standard deviation to the mean.
• Customer Total Baseline Avg Volume—A customer’s average volume for the aggregation period (weekly or monthly) during the Baseline time period. The engine measures this volume in the LS Volume Metric.
• Customer Total Evaluation Avg Volume—A customer’s average volume for the aggregation period (weekly or monthly) during the Evaluation time period. The engine measures this volume in the LS Volume Metric.
• Customer Total Percent Change—Percent change from the Customer Total Baseline Avg Volume to the Customer Total Evaluation Avg Volume. Negative values identify a decline from Baseline to Evaluation.
• Action Impact—Annualized impact of getting volume back to the Baseline Avg. This is a calculated column defined as the difference between the Baseline Avg Volume and the Evaluation Avg Volume, multiplied by the number of aggregation periods per year. Modify this column as needed to create the desired Action Impact metric.
• Current—The Evaluation Avg Volume. Modify this calculated column as needed to capture the best measure of the “Current” state for any actions created.
• Target—The Baseline Avg Volume. Modify this calculated column as needed to capture the best measure of the “Target” state for any actions created.