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Siebel Loyalty Solution
Siebel Loyalty Solution
Romania, Feb 2011
Michal Zbořil
CRM Principal Sales Consultant
Why Should We Bother?
more expensive than to keep an existing
one.
Source: Rob Yanker, Partner, McKinsey & Company
2-5 times
Acquiring a new customer is
Why Should We Bother?
as much as keeping a current one
satisfied.
Source: Rob Yanker, Partner, McKinsey & Company
50 -100 times
Winning back a lost customer can cost
Why Should We Bother?
Attracting & Retaining
customers top
on the agenda for CEOs
Reward Programs combined with
Customer Service & CRM initiatives
is the key to growing customer
relationships
• ‘Commodity’ Products
• Relatively Low Switching Costs
• Not Fully Utilized Customer Information
• Service Potentially a Differentiating Factor
Challenges in Financial Services
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 DifferentiationService Differentiation
Product Differentiation
TimeTime
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”
Forrester
Loyalty Program Membership by Industry
Industries
Mem
bers
in
Millio
ns
Financial Services - driven by credit/debit card business.
Not every Loyalty Program delivers
the intended results
Financial Services Industry has the second largest membership base
• 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
Minimal or No Value for your
Customers/Loyalty Members
Oracle – Siebel CRM
Sales
Service
Loyalty Marketing
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
Everything about
customers
Interests & Plans
Info from agencies
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
Enrollment Process
AccrualProcess
Redemption Process
Member Services
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
AccrualProcess
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
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 AnalyticsSiebel MarketingSiebel Loyalty
Siebel Solution
Siebel Call Center
Loyalty Administrator/Customer/Partner
Loyalty Engine
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
Start
Start
Example – Redemption Processing
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 pre-built loyalty
processes and task-based
flows
• Provides actionable insight
into member behavior with
unified customer viewsEnd-to-end Solution Supports Entire
Loyalty Program Lifecycle
Customer Loyalty Management
Components of Siebel 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
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
Tiers
Tier RewardsAccrual
Promotions
PromotionsPromotion Metadata
Redemption Promotions
Tier Promotions
Member Promotions
Loyalty Rules Framework
Result →Flexibility in Loyalty Program Design
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
LP Management Can Be Complex
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.
Complete Loyalty Program 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.
Complete Loyalty Program Management
Tiers & Tier Rewards
Point Types Partners Program Promotions
Program Members
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., onebased 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
Flexible Tier Management
• 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 PromotionsInfluence Behavior of Your Customers
Loyalty Promotions Examples:
• Simple Promotion
• Simple Frequency Promotion
• Complex Frequency Promotion
• Joint Promotion
• Activity-based Promotions
Powerful Loyalty PromotionsInfluence 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 points and $5 voucher on every $1000 spent within 1 month period
• 200 bonus points if 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, 200 points for spending
over $12000 and 500 points for spending over $14000 in calendar year in our partner
network.
• Joint Promotion• Shop/pay for $1000 or more, dine at Hotel Paradise and buy 24-month plan with ACE
wireless (use direct debit) and earn 500 points bonus
• Purchase our Insurance, pay it with Credit Card and get 5% discount in 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 profile on www.bigbank.com
• 200 points for activating new saving account
• Do your transactions over Online banking - 5 points per transaction
Powerful Loyalty PromotionsInfluence 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 pointsand of which type will be accrued
Loyalty Manager
Wizard Like Style of LP Set Up
Siebel Loyalty can guide you through key Loyalty set up and administration tasks.
Wizard Like Style of Working on FO
Wizards are also used on Front Office – example – Member Enrollment
• 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.
Comprehensive Member Tracking
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
Front Office employees have complete overview of member profile, including Point balances.
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 marketing & loyalty Campaign targeted to loyalty member.
Siebel Loyalty provides a broad member profile that gives you a solid understanding of members’ characteristics and value.
Comprehensive Member Tracking
With Siebel Loyalty, you can monitor fulfillment of member’s Redemption orders
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.
Complete Transactions History
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 and dispute processing
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
Multi-Channel Solution – Member Portal
A real-time integrated Loyalty Member Web site reduces costs and improves
satisfaction by giving members direct access to the program.
Multi-Channel Solution – Member Portal
• 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.
Multi-Channel Solution – 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
Complete Loyalty CRM Package
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
Loyalty Analytic - Complete Insight
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
Loyalty Analytic - Role Based Dashboards
Copyright © 2009, Oracle and/or its affiliates. All rights reserved.
What is the redemptiontrend over the last 12
Months?
Drive MembershipGrowth
What promotions areunder performing?
What corrective actionsshould be taken?
What is the accrualsTransaction trend overThe past 12 months?
Business Function
Customer Loyalty
Role Loyalty Program
Manager
ObjectivesMeet marketing
goals & budget
Retain the loyal
customersDrill to promotion torenew or add
Which are the topredemption products?
BusinessObjectives/
Issues
GainInsights
TakeAction
What promotions existto support
these segments?
Which segmentshave the highestredemption rate?
Loyalty Analytic – Actionable
Drill to promotions torenew or add
What promotions exist tosupport these segments?
What is the redemptiontrend over the past 12
months?
Drive MembershipGrowth
What segmentshave the highestredemption rate?
What are the topredemption products?
BusinessObjectives/
Issues
GainInsights
TakeAction
Copyright © 2009, Oracle and/or its affiliates. All rights reserved. 41
Loyalty Analytic – Actionable
Cross-Industry Customer Success
Customers across 9 industries have chosen Siebel Loyalty to enhance their customer relationships
Organization & Issues SolutionObjectives
• Third largest bank in France
• Over 26 million customers and 4,700 branches
• Operates across complete range of commercial and investmentbanking offerings
• Retail banking is the largest segment
• In a competitive environment, looking to build consumer brand loyalty to influenceexisting customers and attractnew customers
• Increase customer share of wallet through strategic up sell and cross sell promotions
• Award points for activating a new type of savings account
• Incent preferred customerbehavior
• Drive customers to lowest cost channel ( ATMs) by awarding extra points for ATM usage
• Increase loyalty of high valuecustomer segments
• Run targeted promotions to maintain leadership in profitable segments
• Leverage Partner Loyalty program to ensure LP profitability
• Live June 2006 with Siebel Loyalty, Call Center & Analytics 7.8
• BPO deployment hosted by Accenture
• Supporting over 3M members and more than 2,000,000 daily transactions
• Part of successful loyalty partner network called S’Miles (15 millions of members)
• Integrated with over 65 systems including Caisse d’EpargneATMs. Customers can check their points balance at over 6,000 ATMs
Loyalty Case Study: Caisse D’Epargne
COMPANY 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 into a centralized Loyalty
program for enhanced business synergy,
expanded up-sell/cross-sell opportunities 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 transactions processing 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
Loyalty Case Study: Ping An
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
• Live Summer 2005
• Siebel Loyalty
Loyalty Case Study: Deutsche Bank
• 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
Loyalty Programs Help Financial Institutions By
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