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Demand Analytix Adds Forecasting with Events

Product marketing managers can better quantify and predict the impact of events such as product promotions on sales, discounts, and gross margin

  
June 19, 2016    San Francisco, California

 

Demand Analytix now has the ability to add events to its automated forecasting calculations. Examples of events include:

  • a product promotion campaign -- such as a promotion discount 
  • a major sales event  -- such as a "big deal" from a customer that would be considered, for forecast purposes, a "one-off" or outlier.
  • a cannibalization event of a product -- such as when a promotion is done for one product, a different but similar product can be negatively impacted
  • a product stockout  -- an event can be used to indicate when a product was unavailable to ship, negatively impacting demand for it

Demand Analytix's Forecasting with Events capabilities automatically estimates a past event's impact on product sales, discounts, gross margin, and gross margin percent. Also, if the same event is anticipated in the future, it can be used to forecast and predict those metrics. 

Forecasting with Events Advantages

By taking advantage of Demand Analytix's Forecasting with Events, users are able to:

  1. quantify the effects of historical and forecasted events on product demand quantity, revenue, gross margin, and even gross margin percent. No more hand waving and guesstimates.
  2. have a record of events and their effects, thereby allowing them to better plan and predict a future event's impact,
  3. compare the impact of events with actual results after they occur. Events and forecasts are retained in forecast folders, and the actual sales results are automatically displayed in the folder's charts and tables when folders are opened.
  4. create different forecast scenarios with different demand shaping events.
  5. forecast more accurately.  

Advanced Forecasting Calculation Methods with Optimizer

When using Forecasting with Events, events are visualized on the same chart as the actuals orders history and the forecast. Forecast methods that have been extended to accommodate events include most of Demand Analytix's Exponential Calculations. They include Auto Forecast, Single Exponential, Single Exponential with Seasons, Holt Linear and Exponential, and Holt-Winters Additive and Multiplicative with Seasonality.

These forecasting methods also calculate and chart 95% Prediction Intervals (i.e. 95% forecast certainty range). Demand Analytix adds events into the multi-variable regression used to find the parameters, initial conditions and event coefficients that optimize the forecast.  

Unparalled Power When Combined with Forecasting with Partials

Forecasting with Events combined with Demand Analytix's Forecasting with Partials provide for unparalleled power and fidelity. With Partial Forecasting, a user can decompose the product forecast down into the main forecast variables that drive product demand. For example, a company that derives revenue through Resellers and from End Users can decompose the product forecast down into a Reseller forecast and an End User forecast.

If a product promotion event occurs only for Resellers, then by using Forecasting with Events in combination with Forecasting with Partials, the user can analyze and predict the event's direct impact on Reseller sales. Similarly, a partial forecast of geographic regions can be used to directly discern and predict a regional promotion's impact on the specific region.

Helps Product Line Managers Develop Demand Shaping Strategies  

Forecasting with Events enriches Demand Analytix's data analytics offerings for P&L-responsible product line managers and product marketing managers who strive to proactively shape demand and profitability for their products. It is available now and at no additional upsell charge.  

Demand Analytix's mission is to help companies develop product, marketing, and sales strategies that shape future product demand in order to meet or exceed their revenue and profitability objectives. We do this through affordable Business Analytics Software-as-a-Service (SaaS) applications and professional services. Demand Analytix is the only demand forecasting software that is a Software-as-a-Service and that is targeted at product line managers and product marketing managers. 

 

About Us

Demand Analytix helps companies develop product, marketing, and sales strategies that drive and shape product demand to meet and exceed financial goals. We do this through our consulting practice, professional services, and Business Analytics applications, which include Third Party software and our ForecastWorkbenchTM SaaS (Software-as-a-Service).

Contact Us

info@demandanalytix.com