Siebel Loyalty Training

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Shyam B Shah, Director, Loyalty Product Strategy

Oracle-Siebel Loyalty Training, Shanghai, Aug 2, 2007


Agenda

• The Market Opportunity

• Oracle-Siebel Loyalty: Value Proposition

• Siebel Loyalty Overview

• Siebel Loyalty Demo

• Interactive session


Agenda



• Oracle-Siebel Loyalty: Customer Success

• Oracle-Siebel Loyalty: Solution Overview

• Summary

Large Untapped Opportunity for Loyalty

• Large and growing market opportunity across multiple industries • Loyalty Opportunity estimated at $500m ($100-150m in Airlines alone)

• Loyalty programs are at the heart of the overall customer experience and drive strategic customer initiatives for the company, especially in Airline, Retail, Telco, FINS and Hospitality industries

• Well- designed loyalty program can be an effective differentiator

• Loyalty opportunities are highly leveragable and can translate into larger CRM deals (leading to up-sell opportunity for call center, marketing, sales and analytics applications)

• Landscape is untapped by enterprise players – Oracle has the first mover advantage

• To date, there has been very low adoption of packaged Loyalty solutions; most operate on home-grown legacy systems, which are costly to maintain

• Siebel Loyalty is the only enterprise class solution

• Opportunity to leverage significant presence of Oracle footprint (e.g. 75+ Airlines run Oracle Applications)

• Airline, Retail, Telco, FINS & Hospitality Industries are booming and the time to sell Loyalty/CRM is NOW

• Airlines returning to profitability since 9/11

• Loyalty program automation is considered strategic and necessary ( as custom solutions mature) -- high on IT investment agenda

Loyalty: Competitive Landscape

• Competition primarily from

• Number of aggressive niche vendors offering industry focused Point solutions & service bureaus

• Build Option…

• Some new players expected to enter the fray in near future, including some prominent ones like Unica, SAP and IBS


Agenda





• Summary

1. Right approach: Recognition that loyalty programs are a part of a broader customer strategy

• Integrated with world-class CRM platform to enable true end-to-end customer processes

• Marketing & Loyalty: Effective Segmentation and Profiling, Targeted Campaigns

• Call Center & Loyalty: Differentiated and personalized service delivery

• Customer Insight & Loyalty: Ability to Deliver Effective Benefits & Rewards

2. Right solution: Complete, enterprise-class Loyalty solution

• Fully integrated multi-channel customer and partner facings portals

• Highly flexible promotion engine supports the creation of real-time, targeted promotions to respond to competition and marketplace developments

• Built on a highly scalable world-class Siebel CRM platform

Siebel Loyalty Unique Value Proposition

Siebel Loyalty is the only enterprise-class packaged loyalty application that delivers on strategic loyalty and customer initiatives.

3. Right commitment: Continue to set the pace for enterprise Loyalty solutions

• Commitment to continued investment in the platform• Applications Unlimited

• Siebel 8.1+

• Broad and deep organizational support• Team of over 40 dedicated to supporting product development and roadmap

• Product Strategy & Development coupled with Industry Business Unit and industry sales

4. Right customer proof points

• Successful customers across diverse industries

• Proven Deployment models

Siebel Loyalty Unique Value Proposition

Siebel Loyalty is the only enterprise-class packaged loyalty application that delivers on strategic loyalty and customer initiatives.


Agenda





• Summary

Deal Competition Industry Solutions

Holland AmericaInformation builders

(Analytics)Travel & Hospitality

• Loyalty• Marketing Analytics• CM

Air Mauritius Custom build Travel & Hospitality

•Loyalty•CM/MS•Marketing Analytics•Email server

System-U Auchan France Retail

•Loyalty•MRM•CM/MS •Email

Motorola Epiphany Communications

•Loyalty•MRM•Campaign Management•PRM•RTD

United Bank of Africa SAP Financial Services•Loyalty•CM

Key Loyalty Wins in FY07

Deal Competition Industry Solutions

Tiscali Services Custom build Communication • Loyalty

Orange Spain Custom build Communication•Loyalty

Lane Crawford HK - Retail •Loyalty

Jawwal- Communications

•Loyalty•MS

Gas Natural Spain - Retail •Loyalty

TDC- Communication

•Loyalty•Sale, Service•UCM, Analytics

ANWBSAP

Professional Services

•Loyalty•Sales, Service•Analytics & RTD

Key Loyalty Wins in FY07….contd.

Siebel Loyalty Customers Today

25+ companies across 9 industries have chosen Siebel Loyalty to enhance their customer relationships.


Agenda





• Summary

Other Other Operational & Operational &

Analytic SourcesAnalytic Sources

IVR Web CTI

Customer InteractionCustomer InteractionSystemsSystems

Siebel

OLTP

Siebel

UCMSiebel

DW

Legacy Supply ChainFinancial HR

Operational SystemsOperational Systems

CustomerCustomer

Robust Enterprise Marketing Management and Analytics Platform

Segmentation Engine and Marketing Analytics Applications

Role-Based Marketing Solutions

MarketingResource

Management

Campaign/Dialogue

Management

Email& Web

Marketing

EventsManagement

ChannelMarketing

Response- Lead-Order

Management

LoyaltyProgram

Management

Field Sales

Web/eMail Partner

s

Call Center

DirectMail

WirelessPOS/ATMs

Bills &Stmts

BranchesStores

Intelligent Interactions Across Customer Touch-points

Siebel Enterprise Marketing Suite

Managing the Customer Experience Life Cycle

Customer

Communicate Brand, Products &

Services

Response Follow up &

Sales

Customer Service & Support

Rewards & Recognition

List Management

Customer Profiling

Order Management

Campaign Mgmt

Events Management

Segmentation

Cross-sell, Upsell

Opportunity Mgmt

Customer Mgmt

Problem Resolution

Inquiry Handling

Remote Service

Self Service

Rewards Accrual

Redemptions

Member Mgmt

Partner Mgmt

Customer Intelligence

Sales Planning

Marketing Planning Brand Mgmt Promotion Mgmt Offer Mgmt

Field Sales

Web/eMail Partners Call

CenterDirectMail

WirelessPOS/ATMs

Bills &Stmts

BranchesStores

Marketing Sales Service Loyalty

• “…broadest overall functionality and wins B2B.”

• “Siebel Marketing is a no-brainer for existing Siebel customers.”

• “The campaign design and segmentation tools are very strong and worthy of consideration by B2C marketers…”

• “…top-notch analysis tools.”

• “…. very strong functionality for marketing planning and resource management, lead management, event management, and partner relationship management…”

• “Siebel’s new interaction management solution, Real-Time Decisions, promises to rival SSA Global’s Inbound Marketing (formerly Epiphany Interaction Advisor)….”

B2B

B2C

Source: The Forrester Wave™: Enterprise Marketing Platforms, Q1 2006, Elana Anderson, February 3, 2006

Analyst Validation: Strongest Enterprise Marketing Platform For Both B2B AND B2C

Siebel Loyalty ManagementPartners

• Enroll members

• Send transactions to the host organization

• Approve joint loyalty promotions

• Manage service requests

• Approve transactions

• Manage products

• Collaborate on servicing the customer

MembersHost Company

• View complete member profile

• Define tiers

• Enroll members

• Reward behavior

• Create targeted promotions

• Define accrual and redemption rules

• Service a member’s request

• Join program

• Keep profile up to date

• Conduct web transactions

• Enroll in loyalty promotions

• Redeem rewards

• Refer friends

• View statements

• Create Service Requests

• Set contact preferences

Enterprise Analytics and Data Integration Platform

Rules Rewards Tiers Member Profiles Eligibility Promotions Transactions Point Expiration

Loyalty Manager Loyalty Member Portal Loyalty Partner Portal

Loyalty Engine

Promotion Metadata

Tier Classes

Tier Rewards

LoyaltyProgram

Point Types Promotions

Tiers

Program Partners

Program Members

Transaction Processing

Key Siebel Loyalty Entities

Tier Promotions Member

Attributes

Member Field Attributes

Transaction Attributes

Rules

Criteria Actions

Accrual RedemptionTier

AssessmentPoints

TransferPoints Expiry

Redemption Promotions

Member Tier Attributes

Point Total Attributes

Accrual Promotions

Loyalty Rules Framework

Siebel Loyalty

PromotionPromotion

Rule-I Rule-n

Criteria-I

Criteria-n

Action-I

Action-n

Loyalty Promotions

Loyalty PromotionsPoint Type

Qualifying Weight Non Qualifying Weight

Miles 1.0 0.5

Points 0.8 0.4

Promo Point Type Amount Weighted Weighted Promo

1 Miles 250 Q 250.0 390.0

1 Points 350 NQ 140.0

2 Miles 225 NQ 112.5 392.5

2 Points 700 NQ 280.0

3 Miles 125 NQ 62.5 102.5

3 Points 100 NQ 40.0

4 Miles 225 Q 225.0 665.0

4 Points 550 Q 440.0

Loyalty PromotionsPoint Type

Qualifying Weight

Non Qualifying Weight

Miles 1.0 0.5

Points 0.8 0.4

Promotion Point Type Amount Weighted Weighted at Promo level

1 Miles 250 Q 250 390

1 Points 350 NQ 140

2 Miles 225 NQ 112.5 392.5

2 Points 700 NQ 280

3 Miles 125 NQ 62.5 102.5

3 Points 100 NQ 40

4 Miles 225 Q 225 665

4 Points 550 Q 440

Promotion 1 is set to ‘Always apply’

Maximize by PromotionPoint Type

Qualifying Weight


Miles 1.0 0.5

Points 0.8 0.4


1 Miles 250 Q 250 390

1 Points 350 NQ 140

2 Miles 225 NQ 112.5 392.5

2 Points 700 NQ 280

3 Miles 125 NQ 62.5 102.5

3 Points 100 NQ 40

4 Miles 225 Q 225 665

4 Points 550 Q 440

Maximize by Point TypePoint Type

Qualifying Weight


Miles 1.0 0.5

Points 0.8 0.4


1 Miles 250 Q 250 390

1 Points 350 NQ 140

2 Miles 225 NQ 112.5 392.5

2 Points 700 NQ 280

3 Miles 125 NQ 62.5 102.5

3 Points 100 NQ 40

4 Miles 225 Q 225 665

4 Points 550 Q 440

Maximize by Point Type Q/NQPoint Type

Qualifying Weight


Miles 1.0 0.5

Points 0.8 0.4


1 Miles 250 Q 250 390

1 Points 350 NQ 140

2 Miles 225 NQ 112.5 392.5

2 Points 700 NQ 280

3 Miles 125 NQ 62.5 102.5

3 Points 100 NQ 40

4 Miles 225 Q 225 665

4 Points 550 Q 440

Industry Leaders drive Loyalty Roadmap as part of Loyalty/Marketing CAB…

Organization & Issues Projected BenefitsObjectives

• Founded in 1923 (5th oldest)

• Over 7 million passengers yearly

• Turnover 1.6 billion €

• Staff 9.000,

• Fleet of 60 aircraft

• Network of 39 international and 19 domestic destinations

• Leading carrier in Finland

Issues:

– Fragmented solutions – no consistent, unified approach across channels

– Inflexible and costly legacy system

– Designed for 1/6 of actual members

– No analytics for business insight

• Improve customer segmentation (e.g., tier, type, value)

• Understand customer value – current and predicted

• Treat customers in a targeted manner across every touch point by unifying their systems

• Increase program flexibility while significantly reducing cost

Solution

• Charter customer for Siebel Loyalty. Siebel Marketing and Analytics

• Loyalty Manager: 220 users; Loyalty Engine: 600K+ members; Loyalty Customer Portal: 500 concurrent users; Loyalty Partner Portal: 30 registered partners

• 5% improvement in top-tier loyalty promotion response rates

• 72% reduction in time required to create complex promotions

• 13% improvement in mid-tier and lower tier loyalty promotion response rates

• 60% reduction in system costs

• Improved customer satisfaction:

• More relevant communications

• High value customers receive preferential treatment at every touch point

• Improved partner satisfaction:

• Improved promotion and product coordination

• Immediate identification and resolution of accrual/ redemption issues

Loyalty Case Study – FINNAIR“With Siebel Loyalty, we will be able to ensure that the right customers receive the right promotions that increase customer lifetime value while delivering a superior customer experience at a much lower cost."

Organization & Issues SolutionObjectives

• The national railroad of France

• Carries more than 50 million passengers per year

• Supporting 140 cities in both France and Europe

Issues:

– Loyalty program not providing enough impact

– Technology not delivering the promise

– Increased low-cost competition

– Cost and impact of mass marketing challenged MROI

– New popular co-branded programs in France

• Create differentiated Loyalty program – not just “me too”

• Balance tariff reduction needs with loyalty generation

• Ability to launch co-branded programs with S’Miles

• Secure 100% share of wallet of target segments

• Move from mass marketing to smaller, focused campaigns

• Use of electronic channels (email, SMS, web) to drive interactivity and cut costs

• Siebel Loyalty, Marketing, Email Marketing, BI and Call Center

• 60 interfaces with external data sources

• Hosted by Accenture

• Live: April 05 (7 months) for loyalty; full roll-out in June 05

• 4 million members

• 3 million transactions processed monthly

• 300 promotions

• 1,000 Redemption transactions a day on the Member Portal

Loyalty Case Study – SNCF““We selected the Siebel proposal because it was innovative, flexible, and simple, with a single solution for the entire domain, from loyalty program management to data mining and call centres”

– Cyril Garnier, CIO of CRM Services

Performance Metrics

Organization & Issues Solution & MetricsObjectives

• Founded in 1954

• Turnover 3.8 billion €

• 67 stores in France

• Leading retailer of culture and leisure products in France, Belgium, Spain and Portugal.

Issues:

– Obsolete existing Loyalty application

– Inflexible and costly legacy system

– Not scalable enough for the growing membership base

• Improve customer segmentation (e.g., tier, type, value)

• Treat customers in a targeted manner across every touch point by unifying their systems

• Increase program and promotion flexibility while significantly reducing costs

• Siebel Loyalty

• Implemented by Unilog

• Live: Q106

• 10 interfaces with external applications

• Approx 3 million members

• 750 000 transactions processed weekly

• 23 Active promotions, 120 Rules and 1200 criteria

• Uses Loyalty real-time engine to enrol customers and inquire point balances in real-time through their 1000+ PoS systems connected to Siebel Loyalty

Loyalty Case Study – FNAC

Performance Metrics

Organization & Issues SolutionObjectives

• A leading mobile phone operator providing services in Italy

• The leading wireless carrier worldwide in terms of number of GSM subscribers: 80 million lines worldwide

Issues:

– Existing loyalty solution is inflexible and slow

– Promotions cost too much to deploy and are not targeted specifically

• Replace the current loyalty system with a more flexible, cost-effective solution

• Decrease churn by implementing more effective loyalty promotions

• Siebel Loyalty and Call Centre

• Interfaces to 3rd party Call Center app, IVR, TIM Stores, partners

• Live: August 06

• 12 Million members

• 10 Million transactions processed every 2 weeks

• 1 Million transactions processed daily

• 157 promotions

Loyalty Case Study – Telecom Italia Mobile

Performance Metrics

• Set-up Program• Set-up Partners• Enroll members • Set-up Recognition

levels/Tiers• Define accrual and

redemption rules• Set-up Promotions to

reward behavior

• Full service contact center for loyalty program members

• Manage service issues

• Capture member activities

• Redeem points for products and services

• Order capture

• Build sophisticated segments of loyalty members

• Develop personalized marketing communications and offers

• Run campaigns & follow-up on execution

• Analyze effectiveness of loyalty marketing program

•Enables members to:•Register online and manage their accounts

•Manage their points•Redeem points•Review transaction history

•Enables partners to:•Enroll members•Send transactions to the host organization

•Approve joint loyalty promotions

•Manage service requests •Approve Retro-claims

Siebel Loyalty Management 8.0Increase customer intimacy & insight with loyalty management

Enterprise Analytics and Data Integration Platform

Rules Rewards Tiers Member Profiles Eligibility Promotions Transactions Point Expiration

Loyalty Engine

Point of SaleRES/DCS Billing Legacy

Loyalty Manager Loyalty Member/ Partner Portal

Loyalty Service Center Enterprise Marketing

Siebel Loyalty Management Key Features Review

• Complete Program Management

• Flexible Tier Management

• Powerful Promotions Management

• Comprehensive Member Tracking

• Complete Transaction History

• Member Portal

• Partner Portal

Capabilities which help drive a competitive

advantage for our customers

• Siebel Loyalty enables Business users to manage every aspect of running a loyalty program, from program creation to partner management to Accrual & Redemption rules

• Set-up one or more Loyalty programs (e.g. one per LOB)

• Set-up one or more point types as currencies for Loyalty transactions, their cost and selling price

• Set-up Partners, Products & Services offered for Accrual & Redemptions

• Set-up Loyalty promotions

Complete Program Management

• Siebel Loyalty enables Business users to differentiate and recognize members by ‘value’ and thereby drive and influence the desired member behavior

• Set-up multiple Tier classes e.g. one based on what the member did in the last year, another based on their LTV, Profitability, etc.or a combination of the above

• Control all the aspects of tiers management from the number of tiers, to tier rewards, to point expiration rules very easily

Flexible Tier Management

PromotionPromotion

Rule-I Rule-n

Criteria-I

Criteria-n

Action-I

Action-n

• Promotion framework is used in specifying conditions to:

• Determine eligibility & Calculate Reward in one or more Point types

• Determine eligibility & Calculate Redemption Price in multiple modes of payment

• Determine eligibility for Tier progression/regression

• User-friendly set-up

• Highly configurable; rule criteria can be based on ANY transaction or member attributes

Loyalty Promotions – Enables Creation and Deployment of Complex and Targeted Promotions

• Simple Promotion• 25% Discount on Redemption price for Members in

Platinum Tier, flying on the weekend on domestic routes, booking online

• Simple Frequency Promotion• 25000 Bonus Miles on every 10th First class flight

• Complex Frequency Promotion• 20000 Bonus miles for spending upto $10000

30000 Bonus miles for spending upto $12000 and 50000 Bonus miles for spending upto $15000 in calendar year on Qantas Gold visa card

• Joint Promotion• Fly First class with Qantas, Rent a Car with Hertz

and stay at Holiday Inn for min 2 nights and earn 10000 Bonus miles

• Activity-based Promotions• 5000 Bonus miles for referring a member, 25000

Bonus miles for referring 10 or more members in a calendar year

• 1000 Bonus miles for updating profile on qantas.com

Loyalty Promotions – Drives Member Behavior and Promotes Long- Term Loyalty

• Siebel Loyalty provides a 360 degree member view for the business users to get a complete understanding of member’s characteristics & value

• For each member,track and manage complete information at one place • Transactions & Statements• Tiers• Certificates• Membership cards• Service requests & Orders• Contact Information

• Enroll Individuals, Accounts & Households as members

Comprehensive Member Tracking

• Siebel Loyalty enables systematic processing, tracking & management of members’ Accrual & Redemption transactions & point balances

• Transaction can be sourced from multiple sources: Siebel Loyalty, PoS systems or Partner systems

• Transactions can be processed in real-time or batch

• Each transaction carries processing info which provides detail account of which promotions got applied, which did not and why

Complete Transaction Management

• Siebel Loyalty provides a real-time integrated member portal to enable superior customer experience & lower cost of operations

• Member portal allows members to perform the following self-service actions:• Enroll• Maintain profile• View statements, transactions & tier

history• Submit service request• Redeem points• Transfer points• Enroll in Promotions

Multi-channel Solution- Member Portal

• Siebel Loyalty provides a real-time integrated Partner portal to enable cost effective transactions management and superior partnership experience

• Partner portal allows partners to perform the following on the self-service basis

• View, edit, resubmit rejected transactions

• View, edit selected members’ profile information, submit service request on their behalf

• View, approve joint promotions

• Approve Retro-claims

Multi-channel Solution- Partner Portal

Siebel Loyalty Management 8.1Increase customer intimacy & insight with loyalty management

• Greater Program Innovation• Enhanced promotion capabilities• Corporate-employee joint rewards

• Lower TCO & Faster Speed-to-Market• TBUI-based pre-configured Loyalty services, • OOTB Business services to support member

services via third party interfaces• Configurable transaction validation• Bulk member administration• Triggered communications with OOTB XMLP

integration

• Superior Membership Experience• Scalable real-time transaction processing• Pre-built business services for Loyalty and

Point-of-Sale integration• Dynamic pricing for Member services

(including redemption and enrollment) with multi-currency, multiple modes of payment

Multi-currency, Multi-mode Redemption Pricing

Configurable Loyalty Transaction Validations

Loyalty: Key Priorities Beyond 8.1

• Integration with Oracle Financials

• Performance optimization

• Partner Portal enhancements

• Integration with Airline Subsystems

• Integration with Telco Billing Solution

Siebel Loyalty Vision

Loyalty Pricer

Financials

Analytics

PoS

Front-office Back-office

Third Party Systems

OM

“Comprehensive cross-industry Loyalty solution driving Enterprise Loyalty Business”

Airline Systems Telco Billing Banking/FINS

Member Portal Partner Portal 3rd Party Interfaces

Call Center

UCM

Marketing

• Comprehensive Loyalty Financial Management

• Enterprise-class Loyalty engine performance & scalability

• Optimized cross-industry processes for lower TCO and faster speed-to-market

• Enhanced Real-time Partner Collaboration


Agenda





• Summary

Loyalty Marketing Lifecycle

Measure Promotion’s Results and

Effectiveness Manage Flexible Loyalty

Program

Track Comprehensive

Member Profiles

Identify Members for

Targeted Promotion

Respond to Customer Questions

about Promotion

Process Members’

Transactions and Rewards

Create Loyalty Promotion

Create and Execute

Marketing Campaign

Siebel’s Complete Loyalty Management Solution

Loyalty

Loyalty

Loyalty

AnalyticsMarketing

Call Center

Member Portal

Loyalty

Analytics

Scenario -- Integrated Loyalty/Marketing Lifecycle

• Business Challenge: = stiff competition for NA-Europe sectors. Certain routes are turning unprofitable due to poor load factors.

• Goal = increase market share on NA-Europe traffic and increase load factor/yield on the unprofitable routes.

• Targeted Route = New York to London is the route targeted for the turn around

• Loyalty Promotion = triple miles between JFK and LDN• Target= members residing in NY, executive platinum tier• Marketing Campaign Offers -- around key events taking place in

London during June/July 1) Eurocamp- Enjoy Euro camp for a Family vacations (major attraction for

Household members or members with kids/family2) Wimbledon Enjoy the Grand slam tennis tournament (major attraction for

members with Tennis as their hobby)3) Baisakhi Mela – A grand sikh festival (Major attraction for Sikhs, one of the

major ethnic communities in US and UK)

AAdvantage Promotion Example

Closed-loop Loyalty Marketing with Siebel CRM

Loyalty Promotion

New York - London Tripple Miles

(June-Sep, 2007)

Marketing Campaign

Europe-2007Go for Growth

Treatment- II

eMail

Treatment- I

Direct Mail

MessagingSegments & Lists

Hobby = TennisComm Pref: eMail

• Track every customer activity to individual promotions, offers and campaigns

• Measure effectiveness/RoI of Marketing activities at all levels:

• Campaigns• Offers• Loyalty Promotions

Catch Live ActionAt Wimbledon-2007 & Earn Tripple Miles

Enjoy Eurocamps with family this summer & Earn tripple Miles

Enjoy Baisakhi Mela at London & Earn Tripple Miles

Offers

Siebel Loyalty 8.0Sales Impact

Who would be interested

• CMOs• Relationship Marketing Managers• CFOs

Customer Pain Points

• Inability to run targeted campaigns & promotions• Parity deadlock- Inability to implement innovative Loyalty strategies to differentiate from competition

• Tier levels don’t reflect true value of customers• Program changes prohibitively costly and time consuming• Inability to measure Loyalty program effectiveness

Action

• Demo integrated loyalty marketing lifecycle • Demo flexible Loyalty promotions enabling easy and quick changes to swiftly respond to marketplace developments

• Demo Tier class and Loyalty points management • Demo Loyalty dashboard reports using Marketing Analytics

Compelling and Complete Sales Resources at Your Fingertips

• Targeted Customer Pitches• Latest presentations posted on myOracle /Sales support folders on the

FoL (Marketing Loyalty folders)

• New Loyalty demo coming in August, 2007 on ADS

• Blue Chip Customer References• Simple process for requesting references: Send completed

questionnaire to [email protected]

• Leverage the SC support alias: [email protected]

• Committed Product Development Team• For deep product and product roadmap-related questions

Contacts

• Melissa Boxer, VP CRM Product Strategy, Marketing & [email protected]

650-506-1551

• Shyam B Shah, Director Loyalty Product [email protected]

91-40-66051600

Documents

Siebel Loyalty Training