Segment Your Customers to Target Them More Efficiently

  • by Krishna Kumar, Founder, Enterprise Horizons
  • December 15, 2005
Obtaining a better view of your customers by segmenting them allows you to launch targeted marketing programs, promotions, campaigns, and service. You can upload data in a simple format (such as Excel) into mySAP CRM to define customer attributes for effective marketing programs.
Key Concept
An inference dimension refers to a profile you build for a customer based on attributes such as ageand income level. An actionable dimension, on the other hand, refers to a profile you build for a customer based upon behaviors, such as purchasing. You cannot change your customer’s attributes in an inference dimension, but you can create change in your customer’s attributes in an actionable dimension. You cannot change a customer’s age, but you can affect how a customer purchases your product.

From a system implementation perspective, it can take a long time to build a customer segmentation strategy. Companies sell their products to millions of consumers with thousands of attributes per customer. To use these attributes to segment your customers, you would need to manually enter the thousands of attributes and manually link them to the millions of customers, a daunting task that prevents many companies from incorporating this functionality.

However, if you have a data mining process in place, you can use your existing SAP data to create targeted segments and pull out attributes of your customers with a repeatable and maintainable method. In the following example scenario, I will show you how a consumer products company, ABC Industries, segments its customers with mySAP CRM to help with its consumer strategies. First I’ll discuss how you should set up your SAP data to transfer it into mySAP CRM. Then, I will describe how you can upload attributes and attribute sets and use them in mySAP CRM. Finally, I will briefly cover how you can attach these attributes to customers. The setup is a one-time activity and applies to versions of SAP CRM 3.1 and above.

Krishna Kumar

Krishna Kumar has been working with SAP systems for more than 13 years. He has a wide range of product development, consulting, and project management experience. He specializes in customer analytics and has experience in mySAP CRM and BW. As founder of Enterprise Horizons, a startup specializing in CRM and BW, he built a product called ABM for optimizing CRM and BW implementations. Prior to joining Enterprise Horizons, he was vice president at Intelligroup where he built the SAP E-Commerce practice.


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