Skip to Content
Technical Articles

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!

1 Comment
You must be Logged on to comment or reply to a post.
  • 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