Winners, Losers, and Chasers

Winners, Losers, and Chasers

ForesightAI can help you focus on your top-performing products and manage your inventory more effectively. Product segmentation in ForesightAI identifies if your product is a:

  • Winner
    These are your top products and (depending on your strategy settings) the majority of your revenue.

  • Loser
    These products are not selling and are dead stock. These items cost you storage space and money to maintain. We recommend removing these products as soon as possible.

  • Chaser
    These products attract customers but are not top sellers. Chasers are often the majority of your inventory.

These three categories can help you get more out of your top sellers, reduce or remove poorly performing stock, and provide a rich catalog of items for your customers.

Prerequisites

  • Cin7 ForesightAI included in your subscription.

  • ForesightAI requires at least 6 months of sales history in Cin7 Core

Discover your Winners, Losers, and Chasers

With Cin7 ForesightAI, you can quickly monitor the overall percentage and value of your Winners, Losers, and Chasers in the Dashboard.

Select All locations and choose a location to see the ForesightAI insights for that specific location. We recommend reviewing your Winners and Losers for each location. A product might be a star in one area, and underwhelm in another. Comparing between locations can help you better allocate your stock levels across locations.

Dive deeper into these product categories with the Winners and Losers Report. Review all of the products in each category in detail and identify areas for improvement in your stock levels.

ForesightAI also marks Winners with a crown in the Product Availability Report.

Winners

Winners are your top products but often only a small subset of your entire product range. Depending on your strategy settings, Winners are either your highest in profit, revenue, popularity, or volume sold.

Avoid low stock or stockouts (out of stock) on your Winner products. You want these goods available at all times, and with enough buffer stock to get through any unexpected sales spikes. If possible, negotiate for improved profit margins on these items to increase your revenue even further.

Losers

Losers bring in very little or no revenue and often cost you money while sitting on a shelf through storage fees, labor, expiration, and more!

Remove these items from your inventory and don't order more. Discount these products to clear them from your store or negotiate with your suppliers for a buyback. While this will reduce your profit margin, you save on the inventory maintenance costs and make more room for your Winners and Chasers products.

Chasers

Chasers are the majority of your product and they attract customers to your store. But Chasers don't sell enough to be Winners.

Customers choose stores that offer a large variety of goods so Chasers are important to your store. Without Chasers attracting customers , it's harder to sell Winners.You want to keep chasers available, but it's not a business emergency if you are out of stock for a short period.

Service level

The service level determines how available your products are for sale. 100% service level means that of all customers can successfully buy the product. 50% service level means that every second customer goes home without the goods.

Cin7 ForesightAI sets the service level for the different categories:

  • Winners have a 99.5% service level. This helps avoid stockouts and accounts for fluctuating sales trends.

  • Chasers have a 95.0% service level. This helps avoids stockouts, but it is not critical if you are low on stock.

  • Losers have no service level. Ideally, you will sell out of those products and do not need to reorder again.

Strategy settings

You can change how your product segmentation (Winners, Losers, and Chasers) is decided by Cin7 ForesightAI. You can choose your business strategy (Profit, Revenue, Sales Frequency, or Sales Quantity).

Winners, Losers, and Chasers are based on either:

  • The amount of profit generated for your business (Profit).

  • The amount of sales revenue generated for your business (Revenue).

  • The volume of individual customer transactions. In other words, how popular your product is (Sales Frequency).

  • The amount of the product sold or sales volume (Sales quantity).

You can make this change in the ForesightAI app.

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