Question

How do I implement a dynamic segmentation analysis where customers are grouped based on sales trends?
I want to group customers dynamically based on their sales trends, such as high-growth, stable, or declining customers. The segmentation should adjust based on selected time periods or filters. What is the best approach using DAX or Power Query to categorize customers and update the segmentation dynamically?

Answer 1

To achieve dynamic segmentation of customers based on sales trends in Power BI, the following outline provides effective input:

1. Define Sales Growth Categories

Initiate the segmentation by identifying threshold values, for example:

High-Growth: A sales increase greater than 20%

Stable: Sales change in-between -10% to 20%

Declining: A sales decrease greater than 10%

2. Create a DAX Measure for Sales Trend Calculation

This DAX measure calculates sales growth over time:

Sales Growth % =  
VAR CurrentSales = CALCULATE(SUM(Sales[Amount]), Sales[Date])  
VAR PreviousSales = CALCULATE(SUM(Sales[Amount]), DATEADD(Sales[Date], -1, YEAR))  
RETURN  
IF(NOT ISBLANK(PreviousSales), DIVIDE(CurrentSales - PreviousSales, PreviousSales, 0), BLANK())

3. Create a Dynamic Segmentation Measure

Define customer groups based on the sales growth percentage:

Customer Segment =  
SWITCH(  
    TRUE(),  
    [Sales Growth %] > 0.2, "High-Growth",  
    [Sales Growth %] <= 0.2 && [Sales Growth %] >= -0.1, "Stable",  
    [Sales Growth %] < -0.1, "Declining",  
    "No Data"  
)

4. Apply the Segmentation in Reports

• Use this measure in a table or bar chart to categorize customers.
• Allow filtering by date ranges to adjust segmentation dynamically.