A
ABCD Product Segmentation
ABCD product segmentation is a method used to group products based on their commercial importance. Products are typically ranked by sales volume, revenue contribution, or order frequency over a defined period.
A-products are top performers that drive the majority of revenue.
B-products perform well but contribute less than A-products.
C-products have low sales volume but still move consistently.
D-products have very low or irregular sales.
In classic product segmentation, new products and novelties are often treated as D-products because they lack historical sales data. This can lead to under-prioritisation and weak sell-in.
For lifestyle brands, this approach often fails. Novelties require attention early to gain traction.
In Atlo, novelties are temporarily excluded from classic ABCD segmentation during their launch phase. This delay ensures novelties are actively included in order suggestions and sell-in efforts before they are evaluated based on historical performance. Once sufficient data exists, they are automatically included in the next segmentation cycle.