CRM Analytics - An Introduction

SAP CRM Analytics

SAP CRM

Customer relationship management is a broadly recognized, widely-

implemented strategy for managing and nurturing a company’s interactions

with customers and sales prospects.

It involves using technology to organize, automate, and synchronize business

processes—principally sales related activities, but also those for marketing,

customer service, and technical support. The overall goals are to find, attract,

and win new customers, nurture and retain those the company already has,

entice former customers back into the fold, and reduce the costs of marketing

and customer service

SAP CRM

Some of the objectives of CRM

•Streamlined sales and marketing processes

•Higher sales productivity

•Added cross-selling and up-selling opportunities

•Improved customer service, loyalty, and retention

•Increased call center efficiency

•Higher close rates

•Better customer profiling and targeting

•Reduced expenses

•Increased market share

•Higher overall profitability

•Marginal costing

SAP CRM - Analytics

Analytical CRM is a consistent suite of analytical applications that help you

measure, predict, and optimize customer relationships.

In analytical CRM, data gathered within operational CRM are analyzed to

segment customers or to identify cross- and up-selling potential. Data

collection and analysis is viewed as a continuing and iterative process. Ideally,

business decisions are refined over time, based on feedback from earlier

analysis and decisions. Business Intelligence offers some more functionality as

separate application software.

SAP CRM Analytics - Benefits

CRM will help you gain further insights into customer needs and

preferences by identifying patterns to:

•Acquire new profitable customers by cloning your best customers

•Improve your relationships with existing customers by addressing their individual needs

•Optimize cross-selling and up-selling opportunities

•Improve customer loyalty and reduce customers' propensity to churn

•Aim your resources at high-value customers and build more profitable customer

relationships by:

• Targeting your investments in marketing, sales, and service

• Directing your attention and services more effectively toward such customers

• Forcing internal efficiencies and process improvements

•Automate and personalize customer interactions based on sound customer knowledge

•Integrate your enterprise strategy with your strategies in marketing, sales and service.

SAP CRM Middleware

This area enables the replication, synchronization and distribution of data, for

example between a networked branch office and its mobile field sales

representatives. CRM Middleware links together the various types of data

producers (mobile clients, R/3 back-end systems, Business Information

Warehouse, etc.) within a CRM landscape, and provides all components with the

necessary information.

BW Adapter

The BW Adapter extracts data into the SAP Business Information Warehouse (SAP BW). It is called

up as part of the flows for the following BDoctypes:

sBDoc types for synchronizing the consolidated database (CDB) and the mobile clients

mBDoc types for the message flow within the CRM server

With the appropriate BDoc type, the BW Adapter extracts the following objects into the SAP BW:

CRM business transactions (mBDoc)

Documents for CRM billing (mBDoc)

Other objects that are only relevant for mobile clients, such as Chemical Market Potentials (sBDoc)

Master Data

• Business Partners – Accounts, Contacts, Employees

• Products – Material, Service, Warranty, Financing, Intellectual property

• Territory – Geographical locations, products, directly assigned business

partners

• Product Packages – services or contract items, Rate plans, Incentive products,

discounts

• Product Catalog – printed format or CD-ROM

• Warranty Management – Service processes, confirmations, complaints

CRM Process life cycle

It is simply the behavior of a customer with your company over time. Customers begin

a relationship with you, and over time, either decide to continue this relationship, or end

it. At any point in this LifeCycle, the customer is either becoming more or less

likely to continue doing business with you, and demonstrates this likelihood

through their interactions with you.

Process

Lead Generation

Lead Management

Opportunity Management

Sales Team Efficiency

Sales Team Management and Coaching

Marketplace Intelligence

Order processing & Fulfillment

Customer service

Customer service efficiency

Customer service management and coaching

SAP CRM – Analytics (overview)

Analytical CRM is a consistent suite of analytical applications that help you

measure, predict, and optimize customer relationships.

In analytical CRM, data gathered within operational CRM are analyzed to

segment customers or to identify cross- and up-selling potential. Data

collection and analysis is viewed as a continuing and iterative process.

Ideally, business decisions are refined over time, based on feedback from

earlier analysis and decisions. Business Intelligence offers some more

functionality as separate application software.

CRM Analytical Methodology

CRM Analytical Methodology - Measure

• Collect the relevant customer data to understand the customer

behavior and various customer interaction process

• SAP BW’s rich data warehousing and data analysis functionality

provides you the various option to collect and represent relevant

data in Bex and Web.

• SAP provides large set of Business content delivered extractors

and other BW objects to faster implementation for data collection

process

• SAP BW provides the flexibility to do the multi dimensional

analysis from multiple system

CRM Analytical Methodology - Predict

• This involves the predicting the future behavior of customers

based on the historical information derived from hidden pattern

and trends using data mining methods

• The various data mining methods in SAP BW are :

• Clustering

• Decision Tree

• Association Analysis

• Scoring

• ABC Analysis

Data Mining

Data Mining helps you analyze and understand customer behavior by:

•Offering an analytical approach that looks for hidden data patterns and relationships in

large databases.

•Providing insights by analyzing past data, but it is also capable of predicting future trends

and behaviors.

•Enabling organizations to make the critical jump from retrospective analysis to prospective

decision making.

Data Mining can be defined as analysis of large

amounts of data in a database using tools which

look for trends or anomalies without knowledge

of the meaning of the data with the goal of

automatic determination of significant patterns

and hidden associations.

CRM Analytical Methodology - Plan

• Develop the strategic planning to realize the predictions into

action

• SAP BW provides various tools to develop strategic plan

• Integrated planning, BPS and Balanced Score cards are various

available options with SAP BW for planning

• SAP BW planning application supports Top-down and Bottom-up

planning, such as:

• Campaign Planning

• Opportunity Planning

• Trade Promotion Planning

CRM Analytical Methodology - Optimize

• SAP CRM Analytics not just about measuring results. It equally

about applying these results to optimize operational processes

• The goal of CRM Analytics is to empower employee to make the

right decisions and take the customer centric action

• Analytical findings are seamlessly transferred into operation

actions using the closed loop process

• Analysis process Designer is used to transfer the Analytical

results from SAP BW to CRM application such as results of

Customer Analytics can be used to create CRM Target Group

Analysis Process Designer (APD)

• Analysis process Designer (APD) is a workbench with an

intuitive visual interface that enable you to visualize, transform

and deploy your data from SAP BW. It combines all these

different steps into a single data process with visual interface

CRM Analytics Applications

• Marketing Analytics

• Sales Analytics

• Service Analytics

• Customer Analytics

• Product Analytics

• Interaction Center Analytics

Marketing Analytics

Marketing Analytics delivers analytical applications, Business Content, and tools that

enable you to answer numerous business questions covering multiple aspects of marketing

management, campaigns, leads, and the market.

Marketing & Campaign Analysis

The monitoring and success measurement of marketing campaigns is a very important

part of any closed loop marketing process as these are executed in a highly competitive

environment, where several companies are all trying to gain or keep the attention of

their customers and you can monitor and measure the success and costs key figures

accordingly.

Lead analysis

Lead Management is used for entering and managing the potential purchasing interests of

the business partners. You can measure the success and efficiency of leads that have

been created within a certain period or via a specific channel (e.g. via campaigns or the

Internet). You can also monitor the creation of leads and their processing progress over

specific periods, for various products or in different organizational units. Finding out

why leads could not be won can also be vital to the analysis of your Lead Management

processes.

Marketing Analytics

Standard Queries

Revenue/Costs in Planned/Actual Comparison

Campaign Analysis: Response Rate per Target Group

Top 10 Campaigns

Marketing: ABC Analysis Customer Contribution Margin vs. Sales

Marketing Customer Profitability: Top 10

Products: Top N Product Analysis

Lead Management: Channel Analysis

Won/Lost Leads

Channel Mgmt.: Lead History

Sales AnalyticsThe area Sales Analytics delivers analytical reporting tools to answer business questions on

the multiple aspects of sales and distribution. The sales Analytics can be further divided

into the following: Activity Analysis

Activity analysis enables sales managers to monitor their sales team’s daily work, as well as

enabling sales representatives to keep track of their own activities. Sales managers can

see the success rate of activities, and analyze whether the customer or the sales team

predominantly initiated the ‘customer

contact’. He can also evaluate the intensity of their customer care. It is also possible for

sales managers to analyze activities in conjunction with the associated products so that

they can gain an accurate picture of whether their sales strategy is being implemented

and how successful it is.

Opportunity Analysis

Opportunity analysis contains a set of analytics for evaluating opportunities in detail as well

as the processes involved in the opportunity stage of a sales cycle. It provides data

about predicted sales revenue from opportunities, expected Product revenues, and

opportunity pipeline information. You can also use the results of opportunity analyses for

future sales strategy, for example, by looking at competitor information to create target

groups for future marketing campaigns.

Sales Analytics

Quotation Analysis

This analysis scenario enables you to analyze sales quotations. You can monitor the sales

transactions that have taken place in the organization at a detailed level.

Sales Order Analysis

This analysis scenario enables you to analyze sales Orders. You can monitor the sales

transactions that have taken place in the organization at a detailed level..

Sales Analytics

Standard Queries

Activities by Category

Completed Activities

Pre-Sales Investment in Activity Partner

Success/Failure Analysis

Competitors in Current Opportunities

Expected Sales Volume per Product

Opportunity Pipeline

Sales Volume Forecast

Top Five Opportunities

Win/Loss Analysis

Win/Loss Analysis According to Product

Completed Sales Contracts

Sales Contract Pipeline

Billed Sales Orders (Last 12 Months) per Territory

Service Analytics

Service Analytics provides analyses that make operational service processes transparent

and measurable. You can choose from extensive analysis options ranging from customer

satisfaction, product quality, and complaint patterns, through to key figures such as

processing rates and the workload of service team. Service Contract and Quotation Analysis

This scenario provides a range of analyses for service contracts starting from the creation

of warranties and service products, contract quotation and contract agreement, through

to contract billing. During its period of validity, the service contract can be the basis for

service orders, or escalation measures if, for example, the timeframes agreed in the

service level agreement (SLA) are exceeded.

Service Order and Quotation Analysis

This analysis scenario provides different analyses for complete range of processes relevant

to the performance of services, starting with the processing of a service order quotation

and the processing of the actual service order.

Service Analytics

Warranty Analysis

This analysis scenario allows you to perform various analyses with reference to

warranties such as: Analysis on the profitability of a warranty Analysis of the costs

incurred through warranty services Identification of products where a lot of warranty-

based services had to be performed to improve the product quality Number of

warranties that will run out, for example, during the next 3 months

Service Contract and Quotation Analysis

This analysis scenario provides a range of analyses for service contracts starting from

the creation of warranties and service products, contract quotation and contract

agreement, through to contract billing.

Installed Base Analysis

This analysis scenario allows you to analyze the details of the installed base data in the

context of individual service processes with the customer.

Service Analytics

Standard Queries

Expiring Warranties

Warranty Expiration Analysis

Warranty Costs Analysis

Analysis of Products in Installed Bases

Highest-Revenue Products in Service Contracts

Top-Selling Products in Product Lists

Expiring Service Contract Items

Customer Analytics

The Scenario Customer Analyses enables you to gain important insights about your

customers. You can use different types of customer behavior analysis to analyze the buying

behavior, satisfaction, and loyalty of your customers as well as their churn behavior.

Furthermore, you can use customer value analyses to determine the value that a customer

has for your company. Fact Sheet Analysis

The Fact Sheet Analysis in SAP BW enables you to combine the key performance

indicators (KPIs) from sales, service and marketing business content objects. The

iViews for Fact Sheet Analysis retrieve data from the various business content

objects, which is displayed in the portal applications.

Customer Analytics

Standard Queries

Queries for Business Partner Billing Data (0BP_C00_Q0004)

Queries for Business Partner Sales Data (0BP_C00_Q0006)

Queries for Business Partner Shipping Data (0BP_C00_Q0005)

Queries for Migration Analysis

Queries for Deviation Analysis

Product Analytics

Standard Queries

Best Selling Products

Product Profitability

Cross-Selling Analysis

Complaints by Products

Competitor Analysis

Requirement

Opportunity analysis contains a set of analytics for evaluating opportunities in detail as

well as the processes involved in the opportunity stage of a sales cycle. It provides data

about predicted sales revenue from opportunities, expected Product revenues and

opportunity pipeline information. You can also use the results of opportunity analyses

for future sales strategy, for example, by looking at competitor information to create

target groups for future marketing Campaigns. These queries contains following data: Win/Loss Analysis for Opportunities (0CRM_C04_Q001) Win/Loss Analysis According to Product (0CRM_C04_Q016) Top 5 Opportunities (0CRM_C04_Q013)

Functional Specs Technical Specs

Activating Appl. Component & DataSources in CRM

STEP1: Activate application component via RSA9SBIW Business Content DataSources Transfer Application

Component Hierarchy

STEP2: Activate Business Content DataSources via RSA5SBIW Business Content DataSources Transfer Business Content

DataSources.

STEP3: Select Delta between Business Content DataSourcesChoose Select Delta to perform a version comparison of delivered and active

versions. If no active version exists, a delta is marked automatically.

STEP4: Extracting a DataSource using the BW Adapter requires additional information, called BW Adapter metadata. In CRM versions before CRM 5.0 the activation of BW Adapter Metadata has to be done manually.

Activating DataSources in SAP CRM

Transaction code: RSA5

On the Installation of DataSource from Business Content view expand the node ROOT (Application Components ), mark the relevant DataSources and choose Select Sub-tree +/- .

Once you have selected all required DataSources and nodes choose Activate DataSources from the application toolbar.

Activating Appl. Component & DataSources in BI

STEP5: Replicate DataSource from Source System

STEP6: Activate BW Business Content Objects e.g., Infoobjects, Infosources

STEP7: Check connection of source systems / DataSources to all relevant Infosources.

STEP8: Check transfer rules and schedule the data request

STEP9: Check successful data-upload

Replicate Datasource


In BI select your Datasource, right click and select Replicate Metadata

Activating BI Content: Infosource

Select the Infosource 0CRM_OPPT_H

Choose Transfer selections

Transaction code: RS ORBCT

Activating BI Content: Transfer Rules

Select the transfer rules 0CRM_OPPT_H & 0CRM_OPPT_I



Activating BI Content: Update Rules

Select the following update rules

0CRM_OPPH 0CRM_OPPT_H 0CRM_OPPI 0CRM_OPPT_I 0CIC_OOGU 0CRM_OPPT_H



Activating BI Content: DataStore Objects


At the top of the right frame,

choose Grouping and select In

Data Flow Before.


choose Collection mode and

select Collect Automatically.

In the left frame, select Object

types.

In the middle frame, expand

DataStore object and double-

click Select Objects.

Select the following DataStore Objects: 0CRM_OPPH - CRM Opportunity Header 0CRM_OPPI - CRM Opportunity Item


Checking source system connection

Initially we need to check if the connection between two systems are ok.

In BI goto source system, right click on the source system and click on Check.


Activating BI Content: InfoCubes



Data Flow Before.





types.


Infocube and double-click

Select Objects.


Select the following cubes: 0CRM_C04 – Opportunities


Activating BI Content: MultiProvider




Data Flow Before.





types.


Multiprovider and double-click

Select Objects.

Select the Multiprovider CRM Sales Funnel/Pipeline Cube

0CSALMC02:


Activating BI Content: Queries



choose Grouping and select

Only Necessary Objects.





types.


query elements, expand query

and double-click Select

Objects.

Select all the queries underneath the InfoCubes and MultioProvider you have activated in the previous section as well as underneath the DataStore Objects 0CRM_OPPH and 0CRM_OPPI.


Data Flow Diagram

Loading Data

Transaction code: RS A1

Create a Infopackage under the datasource 0CRM_OPPT_H and scheduleProceed similarly for 0CRM_OPPT_I

Reports output

Win/Loss Analysis for Opportunities (0CRM_C04_Q001)

Reports output

Top 5 Opportunities (0CRM_C04_Q013)

Reports output

Win/Loss Analysis According to Product (0CRM_C04_Q016)

Useful links

http://help.sap.com/saphelp_nw70/helpdata/en/04/47a46e4e81ab4281bfb3bbd14825ca/frameset.htm

Building Block documents

•B73_BB_CRM Sales Analysis

•BS4_BB_ConfigGuide_EN_DE

CR 900 – CRM Analytics

THANK YOU

CRM Analytics - An Introduction

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Transcript of CRM Analytics - An Introduction