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Function documentationConnection Between Parameters and Prediction Results

 

The following tables show the connection between the key figures entered for the parameters and the key figures predicted in the simulation screen or the results screen.

  • You make manual entries in the cells containing xx.

  • The optimization algorithm determines the cells filled with yy.

  • The remaining cells contain the formula that is used to arrive at the cell content.

Note Note

The response rate models and default response rates that can also be entered in the parameter screen are not listed here. They are used for the calculation in the yy cells.

End of the note.
Parameters

Campaign Element

Value per Response

Costs per Contact

Costs per Response

CE1

xx

xx

xx
Results

Campaign Element

Number of Contacts

Number of Responses

Response Rate

Gross Value

CE1

yy

yy

Number of Responses / Number of Contacts * 100

Number of Responses * Value per Response

Contact Costs

Response Costs

Total Costs

Net Value

ROI

Number of Contacts * Costs per Contact

Number of Responses * Costs per Response

Contact Costs + Response Costs

Gross Value – Total Costs

Net Value / Total Costs * 100

Additional information on some of the key figures in the result:

  • The number of contacts represents the size of the target group proposed for the respective alternative.

  • The number of responses is expressed to one decimal place, even though there is no such thing as a tenth of a response. In actual fact, this figure is derived from the cumulated individual response probabilities for the individual business partners in the corresponding target group. The system calculates these probabilities to several decimal places.

  • The response rate gives the percentage of business partners that are likely to respond.

  • The gross value is the expected cumulated value of the responses, without the total costs (the contact and response costs) being taken into account.

  • The net value is calculated by subtracting the total costs from the expected gross value.

  • The ROI column displays the return on marketing investment, that is, the percentage ratio between the expected gross value and the expected total costs.

More Information

Parameters

Campaign Optimization and SAP NetWeaver BI