Sign in

Blog · Data quality and reconciliation

Baseline and norm: what this account usually does, and what accounts like it do

The difference between a baseline, an account's own typical level from its own history, and a norm, what similar accounts do when the relationship is full, why the two answer different questions, has this account changed and how far is it from where it could be, which measures use which, surge and dormancy against baseline, gap and share against norm, the case where an account is at its baseline and far from the norm, and the rule that both are stated on the line that uses them.

The short answerA baseline is the account's own typical level: its median weekly tickets, its median order interval, its usual signing lead. It answers whether this account has changed. A norm is what similar accounts do when the company holds most of their business: products used, spend per site, share achieved. It answers how far this account is from where it could be. Surge, dormancy and quiet use the baseline; gap, share and whitespace use the norm. An account can be exactly at its baseline and a third of the norm, steady and small, and that is two facts, both true, both on the line.

Two questions are asked of every account: has it changed, and how far is it from where it could be. They have different references. The first is answered against the account's own history; the second against similar accounts. This guide sets out baseline and norm, which measures use which, the case where they diverge, and the rule.

The two definitions

Baseline Norm
Reference The account's own history Similar accounts, full relationship
Question Has this account changed? How far is it from where it could be?
Computed from The account's own events over a window The population's events in a cell
Needs The account's history The cell's members
Used by Surge, silence, dormancy, quiet clients, forecast bias per rep Gap, share of wallet, whitespace, products per customer, expected basket

Which measures use which

Measure Reference Why
Ticket surge Baseline Whether this account's volume changed
Dormancy Baseline (own cadence) Whether this account's silence is unusual for it
Quiet client Baseline, with the desk's ratio Whether this client's flow changed, net of the market
Share of wallet Norm How much of what similar accounts spend we hold
Whitespace Norm Which lines similar accounts hold
Expected basket Norm What kitchens of this type buy
Renewal timing Baseline Whether this partner is late for it
Segment norm movement Norm Whether the reference itself moved

The case where they diverge

Account Baseline: weekly orders This week Surge or silence Norm: spend per site Actual Gap
4471 3 3 Neither: steady $95,000 $30,000 $65,000
2207 8 2 Silence $95,000 $92,000 None

Account 4471 is exactly itself and a third of the norm: a growth account that has not changed. Account 2207 is at the norm and has gone quiet: a retention account that has. Each reference alone would miss one.

The rows you need

  • Ledger, activity log or ticket export: the account's own events over the window, for the baseline.
  • Customer master and the population's events: for the norm, per cell.

Account identifiers only.

The rule

Every line that uses a baseline states the window. Every line that uses a norm states the cell and the count. A line that uses both shows both.

Where it goes wrong

Norm used for surge. Every small account is always "below" and the change is invisible.

Baseline used for gap. An account compared to itself is always at its own level.

Both unstated. A movement whose reference nobody can name.

New accounts scored on a baseline they do not have. One week of history as the reference.

Every account, two references

Mapped once, the account's own history produces the baselines with their windows, and the customer master and the population produce the norms with their cells, and every line that uses either states it. Covirage builds this from the exports as they are. The norm guide covers the second reference, and the surge list guide covers the first in use.

Questions people ask

Can an account be its own norm?

No. A norm is drawn from a population of similar accounts, so that the question 'how far from where it could be' has a reference outside the account. An account compared to itself can only be asked whether it changed, which is the baseline's question.

Which needs more history?

The baseline needs the account's own history, twelve weeks or a year depending on the measure. The norm needs the population's, and enough members in the cell. A new account has no baseline and is measured against the norm only, with the baseline marked as not yet available.

Why state both on the line?

Because a reader who sees a surge at an account below norm, or a gap at an account whose baseline just fell, needs both to read the row. Surge at a small account is a service finding; a gap at an account whose spend just halved is a retention finding. The two references together are the context.