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The development, release, and timing of any
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Siebel Loyalty Solution
Siebel Loyalty Solution
Romania, Feb 2011
Michal Zbořil
Why Should We Bother?
more expensive
than to
keep an existing
one
.
Source: Rob Yanker, Partner, McKinsey & Company
2-5 times
Why Should We Bother?
as much as keeping
a current one
satisfied.
Source: Rob Yanker, Partner, McKinsey & Company
50 -100 times
Why Should We Bother?
Attracting
& Retaining
customers
top
on the agenda for CEOs
Reward Programs combined with
Customer Service & CRM initiatives
•
‘Commodity’ Products
•
Relatively Low Switching Costs
•
Not Fully Utilized Customer Information
•
Service Potentially a Differentiating Factor
Are Loyalty Programs Something You Should Consider?
•
There are over
1 billion people enrolled in loyalty programs
worldwide.
•
75% of all Americans belong to a loyalty program
• 150+ million members
worldwide in airline
frequent flyer
programs
•
Almost
50 percent of the top U.K. retailers
have loyalty programs
•
40% of all Visa and MasterCard issuers operate a rewards program
What is the Situation?
BRAND EQUITY BRAND EQUITY Service Differentiation Service Differentiation Product Differentiation Time Time StrategyOne Survey
Who Are Typical Companies Running Loyalty Programs?
•
Airlines
•
Hotel Chains
• Financial Services
•
Telecommunication & Media
•
Retailers
•
…
“While consumers agree that
price is important
, they’d
choose
a slightly
higher rate
for
added service
”
Loyalty Program Membership by Industry
Industries
Members
in
Millions
Financial Services - driven
by credit/debit card business.
Not every Loyalty
Program delivers
the intended results
• High maintenance
costs
• Minimal
flexibility
• Limited
functionality
• Poor cross-channel and cross–product
integration
• Minimal
analytical
capabilities
• Manual
partner
management
• Expensive ongoing costs
and change
fees
• Difficult to integrate
with on-site systems
for a complete solution
High maintenance
cost, inflexible legacy
systems
Limited functionality,
poorly integrated
point solutions
High ongoing cost
outsourced systems
Common Issues with Loyalty Systems
…
and their impact on Customer/Member base
All factors together result in
Oracle – Siebel CRM
Sales
Service
Oracle’s Siebel Marketing Concept
Customer Data Management
Marketing
Resource
Management
Enterprise Marketing Management and Analytics Platform
Customer and
Business
Intelligence
Campaign and
Interaction
Management
Customer
Loyalty
Management
Intelligent Interactions across Touch points
Customer Profile
Customer
Fin. Accnt’s Complaints & Requests
Marketing
Resource
Management
Customer and
Business
Intelligence
Campaign and
Interaction
Management
Customer
Loyalty
Management
Oracle’s Siebel Loyalty Processes
Customer Profile
Customer
Fin. Accnt’s Complaints & Requests
Everything about customers Interests & Plans Info from agencies
Customer Data Management
Enterprise Marketing Management and Analytics Platform
Customer Loyalty Management
Intelligent Interactions across Touch points
Customer Profile
Customer
Fin. Accnt’s Complaints & Requests
Everything about customers Interests & Plans Info from agencies
Customer Data Management
Enterprise Marketing Management and Analytics Platform
Oracle’s Siebel Loyalty Processes
Customer Loyalty Management
Intelligent Interactions across Touch points
Enrollment
Process
Accrual
Process
Redemption
Process
Member
Services
Member Redemption Process
Capture Redemption Request Redemption Availment Credit Check Calculate Redemption Price Process Payment Select Price Option Loyalty Agent/ 3rd Party System Transaction Processing Partner Create Order Debit Member Point Balance Fulfill Redemption Create Quote Issue Voucher
Siebel Order Management Siebel Loyalty
Siebel Solution
Start
Start Redemption Process
Member Activity Accrual Partner Debit/Billing
Validate Transactions Siebel Analytics Siebel Marketing Siebel Loyalty Siebel Solution Start End Determine eligibility and accrual reward Credit accrual reward to members Debit Partner Respond back to Partner with transaction processing results Receive Member transaction information via multiple channels
Example – Accrual Processing
Member Activity Accrual Partner Debit/Billing
Validate Transactions Start End Determine eligibility and accrual reward Credit accrual reward to members Debit Partner Respond back to Partner with transaction processing results Receive Member transaction information via multiple channels Siebel Analytics Siebel Marketing Siebel Loyalty Siebel Solution
Siebel Call Center
Member Redemption Process Capture Redemption Request Redemption Availment Credit Check Calculate Redemption Price Process Payment Select Price Option Loyalty Agent/ 3rd Party System Transaction Processing Partner Create Order Debit Member Point Balance Fulfill Redemption Create Quote Issue Voucher
Siebel Order Management Siebel Loyalty
Start
Start
Increase the value and duration of your most important relationships
•
Next-generation solution
for
creating innovative,
customer-centric
loyalty programs
• Enables rapid
partner
set-up
and management
• Delivers
p
re-built loyalty
processes
and task-based
flows
• Provides
actionable insight
into member behavior with
unified customer views
End-to-end Solution Supports Entire Loyalty Program Lifecycle
Components of Siebel Loyalty Solution
Loyalty Engine Loyalty Users Groups
•Setup programs
•Setup Program Currencies
•Define Tierclasses
•Setup Business Rules& Processes
•Setup Partnersand program offerings
•Define accrualand redemption rules
•Setup and Rollout targeted promotions
•Define Expirations& Eligibilities
•Service a member’s request
•Full service contact centerfor loyalty program members
•Enroll Membersand manage membership
•Manageservice issues
•Redeem pointsfor products and services
•Integrated Order Capture
•Enables membersto:
•Registeronline and manage their accounts
•Log an service request •Redeempoints
•Review transaction history & Loyalty assets & Refer Friends
•Enables partnersto:
•Submit transactions to the host organization
•Approve/Reject Retro claims •Enroll members
•Approve joint promotions
•Manage service requests
Loyalty Manager Loyalty Member/ Partner
Portal Loyalty Service Center •Develop personalized
marketing communications
and offers
•Run campaigns & follow-up on execution
•Build sophisticated
segments of loyalty members
•Analyze effectiveness of loyalty marketing program
Enterprise Marketing
Rules Rewards Tiers Member Profiles Eligibility Promotions Transactions Point Expiration
RES/DCS Point of Sale Billing Legacy
Enterprise Analytics and Data Integration Platform
Components of Siebel Loyalty Solution
Loyalty
Program
Loyalty
Partners
Loyalty
Members
Vouchers Member Services Point Types Member Admin Tier Classes Partner Product Offering Accrual Template TiersTier Rewards Accrual
Promotions Promotions Promotion Metadata Redemption Promotions Tier Promotions Member Promotions
Loyalty Rules Framework
Loyalty Rules Engine
To run a dynamic and differentiated
Loyalty program, organizations must
manage:
• Targeted member acquisition
• Continuous program innovation
in-line with target customer preferences and marketplace developments
• Delivery of differentiatedand
personalized serviceat all points of customer interaction
• Management of complex loyalty processes • Member services, administration • Cross-industry partner relationships • Financial management
including liability accounting, receivables, payable and cash management
Loyalty Program
Member Partner
Siebel Loyalty enables business users to
manage every aspect of running a
loyalty program
, from program creation to partner management to point
accrual and redemption rules.
Create and manage
multiple programs
(e.g., for each line of business)
Manage
partner relationships
, including
accrual and redemption rules, point sales,
and joint promotions
Flexibly define
accrual and redemption
rules
, including base points, tier bonuses,
ticket class bonuses, etc.
Siebel Loyalty enables business users to
manage every aspect of running a
loyalty program
, from program creation to partner management to point
accrual and redemption rules.
Complete Loyalty Program Management
Tiers & Tier
Rewards
Point Types
Partners
Program
Business users can
differentiate members
by value and provide clear
incentives for members to change the behavior by defining multiple tiers.
Create
multiple tier classes
, e.g.,
one
based upon
what the member did
in the
last year
and
another
one based upon the
member’s
lifetime activity
Business users control
and can change
all aspect of the tiers, from the
number of
tiers
to
qualification period
length to point
expiration rules
Create
unique tier lengths
by customer to
address members’ unique needs
• Promotions are
rules that
govern who gets a reward
for a
specific action
• They are date defined and may
or may not require
enrollment
• Any member or transaction
attribute can be used in the
promotion’s rules
Powerful Loyalty Promotions
Influence Behavior of Your Customers
Loyalty Promotions Examples:
• Simple Promotion
• Simple Frequency Promotion
• Complex Frequency Promotion
• Joint Promotion
Powerful Loyalty Promotions
Influence Behavior of Your Customers
• Simple Promotion
• 1 point per $ spent with our credit card
• 2 points per $ spent for transactions during the weekdays(higher family expenses)
• Simple Frequency Promotion
• 100 bonus pointsand $5 voucheron every $1000 spent within 1 month period
• 200 bonus pointsif the total purchases paid by our credit card in a calendar year exceed $10000
• Complex Frequency Promotion
• 100 points for spending with our credit card over $10000, 200points for spending
over $12000 and 500points for spending over $14000 in calendar year in our partner network.
• Joint Promotion
• Shop/payfor $1000 or more, dine at Hotel Paradise and buy 24-month plan with ACE wireless (use direct debit) and earn500 points bonus
• Purchaseour Insurance, payit with Credit Cardand get 5% discountin selected
Travel Agencies
• Activity-based Promotions
• 50 points for referring a member, 1000 points for referring >10 members in a year
• 10 points for updating profileon www.bigbank.com
• 200 points for activating new saving account
Powerful Loyalty Promotions
Influence Behavior of Your Customers
Siebel Loyalty enables
complete Promotion set
up
by
business specialists
(not IT).
You can specify exact
Promotion Criteria
that
must be fulfilled in order
to accrue points
.
Subsequently, you can define
how much points
Loyalty Manager
Wizard Like Style of LP Set Up
Wizard Like Style of Working on FO
• Enroll members as
individuals
,
corp. customers
or
households
• Each membership can have one or many people associated with it
• For each member the application can track and manage:
• Transactions
• Tiers
• Membership Cards
• Statements
• Vouchers
• Service Requests
• Orders
• Referrals
• Contact Information
• Promotion Attributes
Siebel Loyalty provides a
broad member profile
that gives you a solid
understanding of members’ characteristics and value.
Siebel Loyalty provides a
broad member profile
that gives you a solid
understanding of members’ characteristics and value.
Comprehensive Member Tracking
Siebel Loyalty provides complete
history
or
member
transactions
relevant to Loyalty
program -
accrual
,
redemption
Siebel Loyalty provides a
broad member profile
that gives you a solid
understanding of members’ characteristics and value.
Comprehensive Member Tracking
Customer facing employees can review all the
Siebel Loyalty provides a
broad member profile
that gives you a solid
understanding of members’ characteristics and value.
Comprehensive Member Tracking
Loyalty Transactions Siebel Loyalty Partner 1 System Internal System Partner 2 System
•
Transactions can be generated by Siebel Loyalty, an in-house system
(e.g., revenue-accounting, POS) or a partner’s system
•
Can be processed in
real-time
or in
batch
•
Promotions
can be based
upon
any of a
transaction’s attributes
•
A
description
of
what occurred
when the
transaction
was
processed
is automatically
added
to each transaction
Transactions
track a member’s accruals and redemptions
with the host
company and partners.
Transactions
track a member’s accruals and redemptions
with the host
company and partners.
Complete Transactions History
Siebel Loyalty provides you with
clear visibility
of
how the points were calculated
. This is
especially important during
complaints handling
A real-time integrated
Loyalty Member Web site
reduces costs and improves
satisfaction by giving members direct access to the program.
Members can perform activities
such as:
• Register for the program
• Update contact information
• View statements
• View transaction and tier history
• Submit a service request
• Transfer points to another member
• Redeem points for products
A real-time integrated
Loyalty Member Web site
reduces costs and improves
satisfaction by giving members direct access to the program.
• Partners
can
view, edit and
resubmit rejected transactions
with any host company
employee’s intervention
• Partners can view and
edit all or
only selected members profile
information
, submit
service
requests
on their behalf
• The partner and the host
company can
plan joint
promotions
Working with partners is simplified with a
real-time integrated Loyalty Partner
Portal
.
Siebel Loyalty can be used as a
stand alone
application or in
combination
with a broader CRM
(e.g., Marketing, Analytics, Call Center) solution.
Loyalty programs provide a
pre-approved way of interacting with
the customer
Marketing campaigns
are an
integral part of communicating
incentives to customers
Many promotions are part of the
loyalty program’s incentive scheme
Pre-integrated Loyalty
Promotions and Marketing
Campaigns/Offers
Loyalty & Marketing Analytics
enables analyzing the loyalty
marketing program’s effectiveness
Copyright © 2009, Oracle and/or its affiliates. All rights reserved.
ANALYSIS & METRICS
BENEFITS
Loyalty Program & Promotions
•
Monitor the
effectiveness of the loyalty
program
. Identify the most valuable customers.
• Drive your customer behavior
in your favor by
closely observing the customer transactions
and rewarding the right ones.
•
Measure the
effectiveness
of your Loyalty
partnership programs
.
•
Track the effectiveness of Loyalty
promotions
and the
response rate
.
•
Track how the loyalty program
members
are
availing
their
rewards
. How fast are they
earning / burning the loyalty points and moving
in the member tier.
Membership Analysis
Loyalty Transactions
Partnership Analysis
Loyalty Financials
•Loyalty Program Effectiveness•Program Points Summary
•Promotion Response Rate
•Top Promotions
•Promotion Success by Customer Segment
•Membership Growth
•Demographic Analysis
•Member Activities by Tier
•Tier Movement Analysis
•Member Value, RFM Analysis
•Points Earning and Burning Rate Analysis
•Transaction Summary by Tier
•Products & Redemptions
•Accrual and Redemption Analysis
•Liability Analysis
•Partnership Effectiveness
•Liability Analysis
•Partner Referrals and Revenue
•Partner Transactions
•Loyalty Balance Sheet
•Revenue Analysis
•Cost Analysis
•Loyalty Program Revenue
Drill to promotions to renew or add What promotions exist to support these segments? What is the redemption
trend over the past 12 months?
Drive Membership Growth
What segments have the highest redemption rate?
What are the top redemption products? Business Objectives/ Issues Gain Insights Take Action
Loyalty Program Overview
Loyalty Points Analyses
Loyalty Member Tiers Analyses
Copyright © 2009, Oracle and/or its affiliates. All rights reserved.
What is the redemption trend over the last 12
Months?
Drive Membership Growth
What promotions are under performing? What corrective actions
should be taken?
What is the accruals Transaction trend over The past 12 months?
Business Function
Customer Loyalty
Role
Loyalty Program
Manager
Objectives
Meet marketing
goals & budget
Retain the loyal
customers
Drill to promotion to renew or add
Which are the top redemption products? Business Objectives/ Issues Gain Insights Take Action
What promotions exist to support
these segments? Which segments have the highest redemption rate?
Drill to promotions to renew or add
What promotions exist to support these segments? What is the redemption
trend over the past 12 months?
Drive Membership Growth
What segments have the highest redemption rate? What are the top redemption products? Business Objectives/ Issues Gain Insights Take Action
Copyright © 2009, Oracle and/or its affiliates. All rights reserved. 41
Cross-Industry Customer Success
Organization & Issues
Objectives
Solution
•
Third largest bank in France•
Over 26 million customers and4,700 branches
•
Operates across complete range of commercialand investment bankingofferings•
Retail bankingis the largest segment•
In a competitive environment, looking to build consumer brand loyalty to influence existing customersand attract new customers•
Increase customer share of wallet through strategicup sell and cross sell promotions•
Award points for activating a new type of savings account•
Incentpreferred customer behavior•
Drive customers to lowest cost channel ( ATMs) by awarding extra points for ATM usage•
Increase loyalty of high valuecustomer segments
•
Run targeted promotionsto maintain leadership inprofitable segments
•
Leverage Partner Loyaltyprogram to ensure LP profitability
•
Live June 2006 with Siebel Loyalty, Call Center & Analytics 7.8•
BPO deployment hosted by Accenture•
Supporting over 3M membersand more than 2,000,000 daily transactions
•
Part of successful loyalty partner network called S’Miles (15millions of members)
•
Integrated with over 65 systems including Caisse d’Epargne ATMs. Customers can check their points balance at over 6,000 ATMsCOMPANY OVERVIEW
• An integrated financial conglomerate
• Revenues: 14B USD$ (Yr 2007)
• Founded in 1988, Headquartered in Shenzhen,
China
• 39.75M individual clients and 1.95M Corporate
clients
CHALLENGES/OPPORTUNITIES
• Short Term: Consolidate existing subsidiary level loyalty initiatives intoa centralized Loyalty
program for enhanced business synergy,
expanded up-sell/cross-sellopportunities and
deeper understanding of the customers
through an integrated view
• Mid Term: Build network of strong cross-industry partners to enhance program value proposition through increased earn and burn opportunities and maximize revenue
• Long Term: Create a premier coalition Loyalty program across China and run it as an
independent profit center
WHY ORACLE
• Strong Siebel footprint in Financial services organization
• World-class solution –capable of
supporting Ping An’s vision to evolve their Loyalty program into a leading Coalition Loyalty program in China
• Strong relationship with Oracle
SOLUTION DIFFERENTIATORS
• Flexibility of the solution to deploy complex
and innovative earn scenarios based on
member activities specific to different Ping An subsidiaries
• Robust platform capable of handling high
volume transactionsprocessing and easy to
interface(Ping An has about 100 legacy
data systems feeding into Siebel loyalty)
• Comprehensive solution with embedded best Loyalty program management
processes, allowing shorter time-to-deploy
RESULT: db Lounge Project
Deutsche Bank Vertriebsgesellschaft
(Unit of Private & Business Clients Division)
Loyalty Program for 3,000 Members (Mobile Sales Agents)
Used as additional Incentive Compensation Tool
Operated as BPO-Model by arvato
COMPANY OVERVIEW
• A leading global investment bank with
a strong and profitable private clients franchise
• 78,000 people in 75 countries • Net Result: 6 Billion € (2006)
CHALLENGES/OPPORTUNITIES
• Inflexible Incentive Compensation
Solution
• High Sales Agents churn rate
SOLUTION
