Optimizing Campaigns Using an Optimization Element
Using an Optimization Element
allows
you to improve the efficiency of your direct marketing campaigns.
Using response models, it suggests how to best address the individual customers of a given target group to maximize profitability. It predicts relevant success key figures, such as response rates, costs, profits, and marketing return on investment.
It also helps you fine-tune your target groups by taking into account multiple channels and offers simultaneously. With the help of this, you can:
Maximize the profitability of your marketing campaigns
Optimize campaigns and find the best target, offer, and channel combination
Introduce constraints in the optimization process
Use simulations to experiment with various types of campaigns
Incorporate the information into a campaign
In Campaign Automation, you can use an optimization element to divide up the initial target group for the different alternatives to maximize the anticipated success of the campaign.
Recommendation
Even if only one single campaign element is intended to be executed, you can use the optimization element to tailor the target group appropriately.
Prerequisites
Technical Prerequisites
A connection between SAP CRM and SAP Business Information Warehouse
(SAP NetWeaver BI) must be set up . You set up this connection in Customizing
for Customer Relationship Management
by choosing
Marketing
Marketing
Planning and Campaign Management
System Landscape.
Business Prerequisites
You need to be in a position to make informed assumptions about the response probability for a campaign based on the different alternatives. You can do this by using:
The default response rate for each alternative, which is the average rate that you can enter based on your experience.
A response prediction model in combination with a default response rate.
In SAP NetWeaver BI, you define the response prediction models
that you specify for the parameters. For more information, see the SAP Library
for SAP NetWeaver under SAP Business Information
Warehouse
BI Content
Customer
Relationship Management
CRM Analytics
Marketing Analyses
Response
Prediction Modelling
.
It is ideal when response prediction models in SAP NetWeaver BI are available for the different alternatives that make predictions specific to the business partners. An example of this is the SAP RFM Analysis.
Assumptions should also be available concerning the average value of a response and the contact costs for the different alternatives. You use this data in the settings for the optimization element.
Process
The system makes a proposal concerning which business partner from the initial target group should be addressed with which alternative, or who should definitely not be addressed because the response probability is too low for it to have a positive influence on campaign success.
This proposal is optimized from the profit perspective or regarding the number of responses. At the same time, any restrictions you specified are taken into account in the proposal, such as budget limitations, channel capacities or upper limits for the number contacted, or offer availability. The system also considers restrictions that you formulated for cases where specific business partners cannot or should not be addressed with all alternatives.
NoteThe procedure for determining the proposal is based on an heuristic method that generally determines a very good proposal or, when used in specific domains, mostly determines the best possible proposal. No use is made here of "exact" procedures because they involve considerably more effort, even if they guarantee finding the best possible proposal.
End of the note.Detailed key figures are determined using the anticipated success of the campaign and its costs.
Result
For a simulation, the system only saves the key figures in aggregated form. When another simulation is performed, the data is overwritten.
When the campaign is executed, the system automatically applies the proposal to create target groups for the subsequent campaign elements, and transfers them to the corresponding channels for execution. The detailed key figures are saved in SAP NetWeaver BI, from where they can be analyzed when required.