What is profit margin in SAP SRD-CRM - CRM-Customer Relationship Management?

SAP Term: profit margin

• Component: SRD-CRM

• Component Name: CRM-Customer Relationship Management

• Description: The difference between sales revenue and variable cost.

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• Key Concepts: 
  Profit margin is a measure of profitability that shows the percentage of revenue that a company retains as profit after accounting for all expenses. It is calculated by dividing net income by total revenue. In SAP Customer Relationship Management (CRM), profit margin is used to measure the profitability of customer relationships and to identify areas where improvements can be made. 
  
  How to use it: 
  In SAP CRM, profit margin can be used to analyze customer relationships and identify areas for improvement. It can be used to compare different customer relationships and determine which ones are more profitable. Additionally, it can be used to identify opportunities for cost savings or increased revenue. 
  
  Tips & Tricks: 
  When analyzing customer relationships, it is important to consider both the cost of goods sold and the cost of services provided. Additionally, it is important to consider the lifetime value of a customer relationship when calculating profit margin. 
  
  Related Information: 
  Profit margin is closely related to other measures of profitability such as return on investment (ROI) and return on assets (ROA). Additionally, it is important to consider other factors such as customer satisfaction when analyzing customer relationships.