What is cancellation rate in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: cancellation rate

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Number of canceled insurance policies against average in-force or new business. The reference value is either the number of policies, the amount insured or the volume of premiums.

Smart SAP Assistant

• Key Concepts: 
  Cancellation rate is a metric used in ICM Incentive and Commission Management (ICM) to measure the rate of cancelled orders. It is calculated by dividing the total number of cancelled orders by the total number of orders placed. This metric helps to identify any issues with customer service, product quality, or other factors that may be causing customers to cancel their orders. 
  
  How to use it: 
  The cancellation rate can be used to identify areas of improvement in customer service, product quality, or other factors that may be causing customers to cancel their orders. It can also be used to measure the effectiveness of any changes made to address these issues. Additionally, it can be used to compare the performance of different sales channels or products. 
  
  Tips & Tricks: 
  When calculating the cancellation rate, it is important to consider the time period being measured. For example, if a company has a high cancellation rate over a short period of time, it may not be indicative of an underlying issue. Additionally, it is important to consider any seasonal fluctuations in order volume when calculating the cancellation rate. 
  
  Related Information: 
  The cancellation rate is closely related to other metrics such as customer satisfaction and return rate. It is also important to consider other factors such as customer service and product quality when evaluating the cancellation rate. Additionally, it is important to consider any external factors such as economic conditions or competitive pressures when evaluating the cancellation rate.