Target Group Optimization 

Purpose

You can use RFM Analysis to optimize a target group defined in the SAP CRM Segment Builder so that the target group only contains business partners with a relatively high probability of responding to the campaign.

Process Flow

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        1.      System provides the sales order data (SAP CRM).

This is collected during sales order processing.

        2.      System updates sales information (SAP BW)

By regularly extracting data from SAP CRM into SAP BW, the system updates the sales information in SAP BW.

        3.      Create an RFM segmentation model (SAP BW)

You create an RFM segmentation model and use the extracted sales information as the basis for dividing the business partners in your customer master into RFM segments.

        4.      System provides campaign data (SAP CRM).

It provides the campaign data that was taken from a representative campaign.

        5.      Create an RFM response rate model (SAP BW)

You create an RFM response rate model and determine for each RFM segment the response rates of the representative campaign. In general, if the campaign was sufficiently representative, the response rates calculated for it can be taken as typical for the corresponding RFM segments and therefore suitable for predicting the response rates in future campaigns.

        6.      System provides the sales order data (SAP CRM)

This data is collected over subsequent periods.

        7.      System updates segmentation (SAP BW)

In SAP BW, you execute the RFM segmentation model again and the system uses the updated sales data to produce a new segmentation of the business partners in RFM segments. This allows you to predict for each business partner a response probability, which corresponds to the RFM segment to which that business partner has been assigned.

        8.      Optimize the target group (SAP CRM)
In the SAP CRM Segment Builder, you can optimize your target group by only including business partners with a certain response probability.