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ABC Classification Based on Profit

Technical name: 0CRM_COPA_C02_ABC_ON_PROFIT

Data mining method: ABC Classification

Use

You can use this ABC classification to determine which business partners in your customer base are the most important for your company in terms of their contribution to company profit. The classification is performed on the basis of the cumulated contribution margin I of all business partners.

The most important customers – those who together generate 20% of the profit - are placed into class A. Those customers responsible for generating the next 30% (making a total of 50%) of the profit are placed into class B, and the remaining customers into class C.

The ABC class can be stored as an attribute in the master data for each business partner (0BPARTNER) and then used subsequently during target group selection or for the replication into SAP CRM.

Model Fields

Classified InfoObject: Business Partner (Structure link0BPARTNER)

Classification criterion: Contribution Margin I (Structure link0COPAMRGN1)

InfoObject class: ABC Class (Structure link0ABC_CLASS)

Model Parameters

Business partners are classified according to the cumulated classification criterion in percent.

Class Name

From

To

Range Type

A

 

20

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B

20

50

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C

50

100

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Sources

Training source: Query CRM CO-PA: Data Collection for ABC Model (Structure link0COPA_C02_Q0003)

Data Targets

Attribute ABC Class (Structure link0ABC_CLASS) for the business partner (0BPARTNER)

 

 

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