What is segmentation model in SAP CRM-MKT - Marketing?

SAP Term: segmentation model

• Component: CRM-MKT

• Component Name: Marketing

• Description: The hierarchical structure of segments that originates when filter criteria are applied to the root segment and subsequently to the resulting leaf segments. The hierarchical structure can have one or more branches. The segmentation model stores the segmentation structure with all the filters that have been applied. As a result, the model can be used to regenerate the segmentation structure stored with the model. A segmentation structure always starts with a root segment and ends with one or more leaf segments. A leaf segment is used for subsequent actions, such as creating a target group based on the customers contained in a leaf segment of a customer segmentation.

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• Key Concepts: 
  A segmentation model is a tool used in SAP CRM-MKT Marketing to divide customers into groups based on their characteristics. This allows for more targeted marketing campaigns and better customer service. It also helps to identify potential new customers and markets. 
  
  How to use it: 
  To use the segmentation model, you first need to define the criteria for segmentation. This could include demographic information, purchase history, or other customer data. Once the criteria are set, the segmentation model will automatically group customers into segments based on their characteristics. 
  
  Tips & Tricks: 
  When setting up the segmentation model, it is important to consider the customer’s needs and preferences. This will help ensure that the segments are meaningful and useful for marketing campaigns. Additionally, it is important to regularly review and update the segmentation model as customer data changes over time. 
  
  Related Information: 
  The segmentation model is closely related to other marketing tools such as customer segmentation and predictive analytics. These tools can be used in conjunction with the segmentation model to further refine marketing campaigns and improve customer service.