Customer Migration Analysis 

Purpose

You can use this process to strengthen your relationships with customers and to generate strategies to provide best services to their most profitable and loyal customers.

Using this business process, you can measure the customer migration and compare:

• The results obtained from the same data mining method. For example, two results of ABC Classification
• The results obtained from the two different data mining method. For example, results of ABC Classification and Clustering or Clustering and Decision Tree

If the number of customer migration is small, it implies that the segments are relatively reliable and do not change much with time. However, if migration is large, the behavior of a certain cluster generated by the analysis is constantly changing, then it cannot be relied upon.

Prerequisites

·        SAP CRM 4.0 support package 01

·        SAP BW Release 3.2

Process Flow

1. System provides customer master data and customer profiles (SAP CRM)
2. System provides sales data (SAP CRM)
3. System updates data in customer knowledge base (SAP BW)
   By regularly extracting data from SAP CRM and SAP R/3 into SAP BW, the system updates the data in the customer knowledge base in SAP BW. All available customer data is combined here so that it can be applied in different analyses and in data mining methods.
4. Create and train ABC classification

You create a model for ABC classification and specify which data should form the basis of the prediction. You then train the model using historic data from a training source and this training result will be used for prediction.

5. Upload results in customer knowledge base

After the model has been trained, you upload the predicted results of the first ABC classification into SAP BW. 

6.       System provides sales data (SAP CRM)

7. System updates data in customer knowledge base (SAP BW)
8. Perform second ABC classification (SAP BW)

For the execution of the queries for migration or deviation analysis, you must perform at least two ABC classifications.

9. Upload results in customer knowledge base (SAP BW)

You upload the results of the ABC classifications into the relevant ODS object.

10. Analyze migration and deviation matrix (SAP BW)

·         To perform migration analysis using data mining, you use the queries 0CRMAIS01_Q0001 or 0DMAIS01_Q0001

·         To perform deviation analysis, you use the queries 0CRMAMC01_Q0001 and 0CRMAMC01_Q0002, or 0DMAMC01_Q0001 and 0DMAMC01_Q0002.

11. Build query for target group selection (SAP BW)

You build a target group based on the results of the analysis. You monitor how many customers who were classified as A in the first campaign have now turned into B customers in the second campaign. This means that the customers who were first classified as A in the first classification have now migrated to B in the second classification. This group of  customers who have migrated could be the target group for a follow-up campaign, for example, a campaign that has the goal to prevent churn.

12. System creates target group (SAP CRM)