Index analysis to benchmark segments

business analytics

slug: recipe-business-analytics-index-analysis-to-benchmark-segments

Recipe: Index analysis to benchmark segments

category: business analytics

Problem

You want to evaluate segments relative to a baseline:

• Identify which products, regions, or customers perform above or below average
• Compare efficiency vs. volume or other benchmark metrics
• Prioritize resources based on indexed performance
• Support decision-making and strategic focus

Solution

Follow these steps to perform index analysis:

• create a cube or contribution dataset with measures of interest
• apply index step specifying the measure, metric, and optional reference baseline
• calculate index values showing performance relative to average or reference
• rank or visualize indexed segments for interpretation

Step Sequence

cube step -> index step -> [step-rank] -> chart step

Input Datasets

• sales_cube or contribution_analysis — aggregated dataset with measure columns
• Notes: must contain numeric measure(s) to calculate index and optional group or level columns

Output Dataset

• index_analysis — dataset with indexed performance for each segment
• Key columns: measure.metric, indexValue, rank, optionally percentile
• Notes: Index values above 100 indicate above-average performance; below 100 indicate below-average

Step-By-Step Explanation

Step	Purpose	Notes
cube step	Aggregate metrics across dimensions	Example: total sales by product × region × quarter
index step	Calculate index relative to baseline	Example: segment sales ÷ average sales × 100
[step-rank]	Optionally rank segments by index value	Identify top and underperforming segments
chart step	Visualize indexed performance	Optional bar chart, heatmap, or ranked scatter plot

Variations & Extensions

• Use filter step to focus on specific segments or levels
• Combine with pareto step to see which high-impact segments are efficient
• Compare multiple measures simultaneously using calculate step for derived metrics
• Integrate with dashboards or executive reports for monitoring

Concepts Demonstrated

• Indexing to benchmark performance vs baseline
• Ranking segments for prioritization
• Integration with cube or contribution outputs
• Sequencing analytics for actionable insights

Related Recipes

• Multi-dimensional analysis using cubes
• Contribution analysis using contribution step
• Pareto analysis using pareto step

Notes & Best Practices

• Ensure measures are properly aggregated before indexing
• Document baseline or reference used for clarity and reproducibility
• Interpret index values in context; high index may not always indicate absolute high value
• Use visualizations to communicate deviations from average clearly

Metadata

title: "Index analysis to benchmark segments"
category: "business analytics"
difficulty: "Intermediate"
tags: [index, cube, benchmarking, analytics]
inputs: [sales_cube, contribution_analysis]
outputs: [index_analysis]
steps: [step-cube, step-index, step-rank, step-chart]
author: "Tom Argiro"
last_updated: "2025-10-25"
doc_type: "recipe"