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1 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
2 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Improve Customer Loyalty
Michal Zboril
CRM Sales Consultant
October, 20, 2011
Hotel Gate One
Bratislava
3 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Is Customer Loyalty Really Important?
more expensive than to keep an existing
one.
Source: Rob Yanker, Partner, McKinsey & Company
2-5 times
Acquiring a new customer is
4 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Is Customer Loyalty Really Important?
as much as keeping a current one
satisfied.
Source: Rob Yanker, Partner, McKinsey & Company
50 -100 times
Winning back a lost customer can cost
5 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Attracting and Retaining Customers Key point on your CEO’s agenda
Attracting & Retaining customers
top
on the agenda for CEOs
Reward Programs combined with Customer
Service & CRM initiatives
is the key to growing customer
relationships
6 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Loyalty Programs? We do not operate Airlines or Hotels …
Industries
Mem
bers
in M
illio
ns
Not every Loyalty
Program delivers
the intended results
7 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Common Issues with Existing Solutions
• 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
All factors together result in
Minimal or No Value for your
Customers/Loyalty Members
8 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Business Challenges
• Saturated Markets
• “Commodity” Products
• Relatively Low Switching Costs
• Not Fully Utilized Customer Information
• Service Potentially a Differentiating Factor
9 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Oracle’s Concept of Marketing Solution
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
Everything
about
customers
Interests
& Plans
Info from
agencies
10 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Loyalty as Integral Part of Marketing Agenda
Marketing
Resource
Management
Customer and
Business
Intelligence
Campaign and
Interaction
Management
Customer
Loyalty
Management
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
Enrollment
Process
Accrual
Process
Redemption
Process
Member
Services
Enrollment | Accrual Redemption | Services
11 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Loyalty Processes – Involves Multiple App’s
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
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 ManagementSiebel Loyalty
Siebel Solution
Start
Start
Redemption Process
Member Activity Accrual Partner Debit/Billing
Validate Transactions
Siebel AnalyticsSiebel MarketingSiebel 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
Siebel Call Center
Loyalty Administrator/Customer/Partner
Loyalty Engine
Enrollment Process
Enrollment | Accrual Redemption | Services
12 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Managing Loyalty Programs Can Be Challenging
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 differentiated and
personalized service at 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
13 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Oracle Solution for Loyalty Management The most complete solution on the market
• Next-generation solution for
creating innovative, customer-
centric loyalty programs
• Enables rapid partner set-up
and management
• Delivers pre-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
14 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Components of Oracle Loyalty Solution
Loyalty Engine
Loyalty Users Groups
• Setup programs
• Setup Program Currencies
• Define Tier classes
• Setup Business Rules & Processes
• Setup Partners and program offerings
• Define accrual and redemptionrules
• Setup and Rollout targetedpromotions
• Define Expirations & Eligibilities
• Service a member’s request
• Full service contactcenter for loyalty program members
• Enroll Members and manage membership
• Manage service issues
• Redeem points for products and services
• Integrated Order Capture
•Enables members to:•Register online and manage their
accounts•Log an service request•Redeem points•Review transaction history &
Loyalty assets & Refer Friends
•Enables partners to:•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 personalizedmarketing communicationsand 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
Loyalty on PoS
15 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Complete Loyalty Management
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.
16 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Complete Loyalty Management
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.
Tiers & Tier
Rewards
Point Types Partners Program
Promotions
Program
Members
17 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Flexible Members Tier Management
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
18 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Drive Your Customer Behavior You can use Promotions to drive you cross&up-sell
• 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
Loyalty Promotions Examples:
• Simple Promotion
• Simple Frequency Promotion
• Complex Frequency Promotion
• Joint Promotion
• Activity-based Promotions
19 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Drive Your Customer Behavior Easy set up & management of Loyalty Promotions
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
and of which type will be accrued
20 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Complete and Accurate Members Tracking Know about your members more than they do
• 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.
21 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Complete and Accurate Members Tracking Know about your members more than they do
Siebel Loyalty provides a broad member profile that gives you a solid
understanding of members’ characteristics and value.
Siebel Loyalty provides complete history or
member transactions relevant to Loyalty
program - accrual, redemption
Front Office employees have complete overview
of member profile, including Point balances.
22 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Complete and Accurate Members Tracking Know about your members more than they do
Siebel Loyalty provides a broad member profile that gives you a solid
understanding of members’ characteristics and value.
With Siebel Loyalty, you can monitor fulfillment
of member’s Redemption orders
23 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Complete Visibility to Loyalty Transactions
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.
24 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Complete Visibility to Loyalty Transactions
Transactions track a member’s accruals and redemptions with the host company
and partners.
Siebel Loyalty provides you with clear visibility
of how the points were calculated. This is
especially important during complaints handling
and dispute processing
25 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Provide Self-Service Channel for Members
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
26 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Provide Self-Service Channel for Members
A real-time integrated Loyalty Member Web site reduces costs and improves
satisfaction by giving members direct access to the program.
27 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Empower Your Business Partners
• 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.
28 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Loyalty Analytics – Complete Insight
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
29 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Loyalty Analytics – Role Based Dashboards
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 segmentshave the highestredemption rate?
What are the top
redemption products?
Business
Objectives/Issues
Gain
Insights
Take
Action
Loyalty Program Overview
Loyalty Points Analyses
Loyalty Member Tiers Analyses
30 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Cross Industry Customer Success
Customers across 9 industries have chosen Siebel Loyalty to enhance their customer relationships
31 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
Proper Loyalty Programs Can Help You By
• Decreasing price competition and marketing costs
• Increasing switch costs and customer retention
• Building trusting and positive customer relationships
• Strengthening the brand
• Increasing the share of wallet
32 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
33 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
34 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.