What is weighted sales volume in SAP CRM - Customer Relationship Management?

SAP Term: weighted sales volume

• Component: CRM

• Component Name: Customer Relationship Management

• Description: A factor that increases or decreases the forecasted revenue. For example, the user makes a setting in Customizing that there is a 50 percent chance of success that the forecasted sales volume of 20, 000 EUR will be achieved. Therefore, the system calculates in accordance a worst-case scenario and calculates 50 percent of the forecasted sales volume. The weighted sales volume is, therefore, 10, 000 EUR. The weighted sales volume is, therefore, 10, 000 EUR. The weighted column is hidden in the application.

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• Key Concepts: 
  Weighted Sales Volume (WSV) is a metric used in Customer Relationship Management (CRM) to measure the total value of sales transactions. It is calculated by multiplying the quantity of each item sold by its unit price, and then summing up the results. WSV is a useful metric for understanding the overall performance of a business, as it takes into account both the quantity and value of sales. 
  
  How to use it: 
  To calculate WSV, first identify all sales transactions that occurred during a given period. For each transaction, multiply the quantity of items sold by their unit price. Then, add up all of these values to get the total WSV for that period. This number can then be compared to previous periods to track changes in sales performance over time. 
  
  Tips & Tricks: 
  When calculating WSV, it is important to include all sales transactions that occurred during the period in question. This includes both online and offline sales, as well as any discounts or promotions that were applied. Additionally, it is important to use accurate pricing information when calculating WSV, as this will ensure that the results are accurate and reliable. 
  
  Related Information: 
  Weighted Sales Volume is closely related to other metrics such as Average Order Value (AOV) and Customer Lifetime Value (CLV). AOV measures the average amount spent per order, while CLV measures the total value of a customer’s purchases over time. Understanding these metrics can help businesses better understand their customers and optimize their marketing strategies accordingly.