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Author's profile photo Guilherme Paulino

Customer Classification and Score Builder app

Introduction

Did you know you can use standard Score builder functionality to classify your loyal customers based on their buying behavior?

Based on your contacts’ sales order interactions you may score them as ‘Platinum Customers’, ‘Gold Customers’, ‘Silver Cusomters’ or ‘Bronze Customers’,just to give an example.

By asking a few questions you are able to design your score properly.

  • How recent did your customer purchase something from you physical or online store?
  • How often did your customer buy something in a specific timeframe?
  • How much did your customer spend on his last orders?

We’ll use Segmentation modeling, create target groups, configure scores from Score builder app and use Marketing application jobs to update target groups automatically.

Use case

As a marketing expert you want to start driving more efficient campaigns to your customers according to their classification. For this you want to score them differently depending upon their recency, frequency and monetary (RFM) sales order interactions.

As per business definition, let’s assume the following use case:

  • Super Gold Customers: those who spend over or equal to $1,000.00 (Monetary) in at least 3 different sales transactions from your online or physical store (Frequency) in the last 3 months (Recency);
  • Gold Customers: those who spend over or equal to $1,000.00 in fewer than 3 different sales transactions from your online or physical store in the last 3 months;
  • Super Silver Customers: those who spend from $500 to $999 in at least 3 sales transactions in the last 3 months;
  • Silver Customers: those who spend from $500 to $999 in fewer than 3 sales transactions in the last 3 months;
  • Super Bronze Customers: those who spend less than $500 in at least 3 sales interactions in the last 3 months;
  • Bronze Customers: those who spend less than $500 in fewer than 3 sales interactions in the last 3 months.

How can you do this?

Let’s get started

As a pre-requisite you have customers, products and sales order interactions in your SAP Marketing Cloud system.

The following information will be used for setting up this scenario:

 

1. Segmentation modeling

Go to Segmentation Modeling app:

SAP Marketing Cloud offers two great standard key figures: Count of Interactions and Total Amount.

Drag and drop ‘Count of interactions’ and set the information accordingly:

Now, drag and drop ‘Total Amount’ up on top of ‘count of interactions’. And set it up accordingly:

As a result,in our example, you will have created segmentation model for Super Gold Customers!

You will then need to repeat the above steps and change operators, number of interactions and amount values in order to create other segmentation models for Gold Customers, Super Silver Customers, Silver Customers, Super Bronze Customers and Bronze Customers.

You may create just one single model with all segments underneath it or you may create 6 different models, it doesn’t matter!

Last but not least, save your model(s) and name it(them) accordingly! 🙂

 

2. Create dynamic target groups for each classification

From your segmentation model, click Create target group. You will need 6 TG’s, one for each classification.

For example, let’s create dynamic TG for Super Gold Customers:

As a result you will have created TG for this specific classification group based on your segmentation modeling.

Repeat tsteps above to create all Target Groups.

 

3. Create your classification score

Go to Score builder app:

Create a New score and name it as you wish:

Create a New rule modeler and adapt it:

Choose
If ‘member of the target group’ EXISTS IN ‘Super Gold Customers
Then Scorechangeby: 5

If ‘member of the target group’ EXISTS IN ‘Gold Customers
Then Scorechangeby: 10

If ‘member of the target group’ EXISTS IN ‘Super Silver Customers
Then Scorechangeby: 15

If ‘member of the target group’ EXISTS IN ‘Silver Customers
Then Scorechangeby: 20

If ‘member of the target group’ EXISTS IN ‘Super Bronze Customers
Then Scorechangeby: 25

If ‘member of the target group’ EXISTS IN ‘Bronze Customers
Then Scorechangeby: 30

For example:

Save and activate the rule:

Go back to score details and finish its configuration. You may create score labels, colors as well as choose client application and whether the score should be able for future use in segmentation.

Save your newly created Score and it is ready for use and is available in customer profile screen:

 

4. Update classification regularly

In order to have your customers’s classification up-to-date you may make use of Marketing Application Jobs and described in this blog article.

Just create one job for each classification and schedule it according to your needs.

 

Summary and Conclusion

You can:

  • Use ‘Segmentation’ app to model your segments according to your business scenario;
  • Create dynamic target groups based on segmentation modeling;
  • Use ‘Score builder’ app to create your own Customer classification score based on the target groups previously created;
  • Use ‘Marketing application jobs’s to schedule regular updates to your target groups and thus your classification score.

This is a very flexible functionality and may apply to different scenarios such as different interaction types and attributes.

Customers may participate in different campaigns and therefore have a more personalized approach depending on their score classification.

There are many ways to achieve the same feature. This is just one example! Use your imagination and go beyond with SAP Marketing Cloud and its neat standard functionalities!

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      12 Comments
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      Author's profile photo Andreas Walter
      Andreas Walter

      Very nice blog!

      I've got one question. We did nearly the same, but unfortunately when we tried to select the comparison operator "exists in", we were not able to select it. It disapeared when we clicked on it. Is there any workaround or trick to get the value?

      Thanks

      Andreas

      Author's profile photo Luis Guilherme Paulino
      Luis Guilherme Paulino
      Blog Post Author

      Hello Andreas Walter ,

      You mean, you were not able to create the score builder using 'exists in' operator? This is awkward. I did nothing special, just used it normally. Are you on cloud version or on-premise? maybe you could open a ticket to SAP? Or if you want, reach out to me via private message and show me some screenshots and I will see if I can help you.

      BR,

      Guilherme.

      Author's profile photo Xiaolan Wang
      Xiaolan Wang

      Got same issue as Andreas Walter, When i chosed "member in target gourp" the operator "exist in" would disappear.

      BR,
      Sean Wang
      Author's profile photo Florian Gustke
      Florian Gustke

      Hi Guilherme, thanks for the blogpost - in your rule you are using a timeframe saying "in the last 3 months" - is there somehow a possibility in SAP Marketing Cloud Score Builder to build rules "since day x". Meaning we are not asking for a timeframe in the past but for activites that happened after a specific day?

      Regards,

      Florian

      Author's profile photo Guilherme Paulino
      Guilherme Paulino
      Blog Post Author

      Hi Florian Gustke ,

      You sure can do that. Actually there are different ways to achieve this. For instance you can use the many options under 'custom period':

       

      You may also use the data range. In this example, you would be filtering interactions from May 3rd, 2022 onwards. Of course you may set your "since" date according to your needs.

       

      Hope this helps.

      Regards,

      Guilherme.

       

       

      Author's profile photo Florian Gustke
      Florian Gustke

      Thanks for your quick reply - maybe I didn't ask the right question for what I wanted to know 🙂 I am looking for this functionality in the score builder itself. It won't help us in the segmentation/target group creation process.

      I was more looking for an option within the rule model.

       

      Author's profile photo Florian Gustke
      Florian Gustke

      Rule%20Model

      Rule Model

      Author's profile photo Guilherme Paulino
      Guilherme Paulino
      Blog Post Author

      Oh, I got it now.

      Apparently not! I noticed the options Month and Year are available, but not Day. Would 'month' work for you or do you really need an exact day? You could then use Month 'is greater than or equal to' MMYYYY.

      Or maybe if you have a custom field for the date...this could be available for score building (but of course you need to check if this makes sense for your scenario). For example, in my system I have 'order date' as a custom field:

      Last but not least...you could raise a ticket to SAP and check whether they can make field 'date' available for score rules...and maybe raise a customer influence for that. Would get my vote! 🙂

      Regards,

      Guilherme.

       

      Author's profile photo Florian Gustke
      Florian Gustke

      Thanks again :-)! Month would work indeed! It is not as sharp as Date but a step in the right direction.

       

      In our scenario we would like score if there is a sequence of certain interactions. Let me try to explain that scenario:

      A Contact logs in to our website - tracked by an interaction in contact profile

      Within a certain timeframe he registers to one of our events - another interaction that is tracked

      In our score model we now want to give him a score if the second interaction happened within 90 days after the first interaction happened. But unfortunately those scenarios can't be build within marketing cloud. Even with your suggestion of setting a specific date it wouldn't help us as we need to pull in a dynamic date (depending on his first interaction) .. Therefore I am afraid we have to re-model our iFlow and implement the logic there.

      Anyways - I would be happy to discuss that scenario in more details with you.

      Author's profile photo Guilherme Paulino
      Guilherme Paulino
      Blog Post Author

      Hello there Florian Gustke,

      I get it know. But you know what....maybe the segmentation/target group creation would actually work (I really like to use this solution and it has worked for quite a few of my customer requirements!!). I might be wrong but let's think for a moment...

      • On one side, you could segment contacts who login to your website daily (current day - I may be wrong on the date you need to use, but this is just an idea)
      • On the other side, you could segment contacts who register to your event for the 'next 90 days' (counting from current day to the next 90 days)
      • lastly you could intersect the contacts from both sides and see what you get

       

      Something like this:

       

      I don't know, this is just an idea. It's probably not too precise (e.g. you probably shouldn't be looking for the current day for the login interaction, maybe you should look for the past 90 days or something like that). But I just wanted to throw out this idea.

      I have had some complex scenarios that I was able to solve using segmentation. It took some brainstorming effort and simulations but I go to what I needed.

      Hope this helps somehow.

      Kind regards,

      Guilherme.

      Author's profile photo Florian Gustke
      Florian Gustke

      screenHi Guilherme, that looks pretty good - we were trying to do that but unfortunately the conditions area looks very different

      screen

      Author's profile photo Guilherme Paulino
      Guilherme Paulino
      Blog Post Author

      Hello Florian Gustke,

      This is configurable as per requirement. Try following the following steps:

      Set up your solution - Segmentation and target groups - Segmentation - Set up - Segmentaion profiles.

      Choose your segmentation profile you're working on.

      Click the Segmentation object hyperlink e.g. SAP_CONTACT_ENGAGEMENT_SIN

      Select the specific data source e.g. SAP_CE_PRODUCT_IA_HEADER_KF

      Select the field (or attribute name) you want to set up e.g. TOTAL AMOUNT

      Under 'dimensions' tab you may include the necessary conditions (make them visible)

       

      Hope it helps. If not, please reach out to me on a private message and I can try to guide you.

      Regards,

      Guilherme.