What is ranking method in SAP (CRM-MKT - Marketing)?

SAP Term: ranking method

• Component: CRM-MKT

• Component Name: Marketing

• Description: Method used to determine which business partners are to receive allocations, depending on the quantity of products allocated to them. There are three methods as follows: Budget: Assigns priority one to all business partners until a prescribed budget is reached. The remaining business partners are then marked as priority two. Penetration: Assigns priority one to all business partners until a prescribed percentage % of stores relative to total list is reached. The remaining business partners are then marked as priority two. Quantity: Assigns priority one to all business partners until a prescribed quantity is reached. The remaining business partners are then marked as priority two.

Smart SAP Assistant

• Key Concepts: 
  Ranking method is a tool used in SAP CRM-MKT Marketing to prioritize and organize customer data. It allows users to assign numerical values to customer data, such as customer segmentation, and then rank them according to their importance. This helps users to quickly identify the most important customers and target them with marketing campaigns. 
  
  How to use it: 
  To use the ranking method, users must first define the criteria for ranking customers. This can include customer segmentation, customer lifetime value, or any other criteria that can be assigned a numerical value. Once the criteria have been defined, users can assign numerical values to each customer and then rank them according to their importance. 
  
  Tips & Tricks: 
  When using the ranking method, it is important to remember that the numerical values assigned to customers should reflect their importance. For example, if a customer has a high lifetime value, they should be assigned a higher numerical value than a customer with a lower lifetime value. Additionally, it is important to regularly review and update the ranking method as customer data changes over time. 
  
  Related Information: 
  The ranking method is closely related to other tools used in SAP CRM-MKT Marketing such as segmentation and targeting. By combining these tools, users can create more effective marketing campaigns that are tailored to specific customers. Additionally, the ranking method can be used in conjunction with other analytics tools such as predictive analytics to gain deeper insights into customer behavior.