Setting Up Coupon Redemption Models in SAP NetWeaver BI

Coupon redemption models enable you to forecast the redemption probability of your coupons both during the planning process and for coupons that are already in circulation. The forecast is based on extrapolation of past coupon redemption data and can be called from cost planning.

When setting up the redemption model in SAP NetWeaver Business Intelligence (SAP NetWeaver BI), go to the Coupon Redemption Modeling Workbench (transaction rsmrm_corm), which is based on the functions of the Analysis Process Designer. For more information about the Analysis Process Designer, see SAP Library under Start of the navigation path SAP NetWeaver Next navigation step SAP NetWeaver by Key Capability Information Integration by Key Capability Business Intelligence BI Platform Analysis Process Designer End of the navigation path .

Prerequisites

You have made the settings in SAP NetWeaver BI in Customizing for SAP NetWeaver, by choosing Start of the navigation path Business Intelligence Next navigation step Settings for BI Content Customer Relationship Management Marketing Coupon Redemption Models Define System Parameters for Coupon Redemption Modeling End of the navigation path and have modified the BAdI Coupon Redemption (RSMRM_CORM_BADI), if required.

Process

Set up coupon redemption models in SAP NetWeaver BI by going to the Coupon Redemption Modeling Workbench (transaction rsmrm_corm).

Retrieval of past redemption data

Actual coupon redemption data is needed both for calculating the class curves (“training”) and for the subsequent forecast of redemption probability for a specific coupon. The actual data is normally provided by the coupon clearing house and must be uploaded to SAP NetWeaver BI.

By default, the InfoCube 0CRM_C07 is available for this. You can also use an InfoProvider that you have defined.

The definition of data retrieval is performed on the tab page Settings in the area Coupon Redemption Data.

Here you define the data retrieval that returns the following fields:

Marketing element = Coupon
Month/Year
Number of redeemed coupons

Example of past redemption data

Coupon Redemption Models in SAP NetWeaver BI
Marketing Element	Month/Year	Number of Redeemed Coupons
COUPON-001	01.2004	1.200
COUPON-001	02.2004	1.602
COUPON-001	03.2004	980
COUPON-002	02.2004	600
COUPON-002	03.2004	670

Note Note

As a rule, you should restrict the date selection to sufficiently up to date coupons to make allowance for the fact that the redemption behavior can change over time.

End of the note.

Preparation for coupon circulation.
The circulation of each coupon is needed to calculate the redemption rate. This can normally be found in the strategic InfoCube in which the coupon planning data is stored.

Define the data retrieval with the following fields in the coupon circulation data area on the Settings tab page:
- Marketing element = Coupon
- Circulation
Note
The data is usually in a Business Planning and Simulation (BPS) strategic InfoCube in SAP NetWeaver BI. As with all queries that are based on BPS strategic InfoCubes, the special variable for the request ID named Most Current Data (0S_RQMRC) also needs to be used here. Include this variable as a filter condition in the query so that planning data can be read. If this variable is not used, the query will not select any data.

End of the note.
Definition and derivation of class characteristics.

This step is performed on the tab page Settings in the area Define Coupon Class Characteristics. Here you enter the characteristics by which the coupons should be grouped in the training process. You can specify random InfoObjects

InfoObjects that are available as attributes of the marketing element are subsequently filled with the appropriate values automatically. When filling these InfoObjects, the system takes the most up-to-date value from the master data, meaning that the master data does not necessarily need to be activated already (realignment run).

InfoObjects that are not attributes of the marketing element must be filled by a BAdI.

Example
One of the classification attributes should be the size of the coupon circulation. For this, you create an InfoObject that has the values “small”, “medium”, “large” and “very large”. In the BAdI, you read the respective circulation from the corresponding data source in SAP NetWeaver BI, usually from the strategic InfoCube. You then assign the corresponding category to the circulation size and thus fill the value of this class attribute.

End of the example.

For more information, see the documentation for the BAdI Coupon Redemption (RSMRM_CORM_BADI) in SAP NetWeaver BI.

Note
The quality of the forecast definition is to a large extent influenced by the appropriate choice of the class characteristics used. On the one hand, these characteristics should be chosen so that they include as many similar coupons as possible, and on the other side, the classes created should contain enough coupons to enable meaningful average curves to be generated. This choice should be based on your own experiences. You can check it before you decide to keep it.

End of the note.
Updating the redemption model
Each time you receive updated data from your clearing house or SAP CRM system (in the case of internal clearing) and import it into SAP NetWeaver BI you can update the forecast curves (retrain the model). It makes sense to do this since the curves calculated will reflect the most up-to-date developments.

Result

You have set up a redemption model that enables you to determine coupon redemption probabilities using the BAdI Coupon Redemption (RSMRM_CORM_BADI)and to view the corresponding redemption curves.

More Information

Determining the Redemption Probability for Coupons