What is Weather Sensitivity?
Weather sensitivity is a metric (percent) that quantifies how much of a product’s sales are directly attributed to changes in the weather for a given time period. It is derived from Planalytics’ comprehensive multi-year analysis of corresponding sales data.
Why Does It Matter?
Weather sensitivity reflects how much revenue the weather can potentially “put in play” each year. It helps businesses understand in what period of the year weather plays the most important role for demand of its products. When weather sensitivity is high, it only takes a slight change in weather to set off demand. When it is low, it takes a more significant change in weather to get the same effect on demand. With this insight, companies can adjust safety stock levels or alter spend on digital ads — e.g., boost digital advertising during the most weather sensitive periods, or conversely, decide to promote another product.
December Weather Sensitivity
In the month of December, 49% of Ice Melt sales are directly influenced by weather in the U.S. on a national basis.