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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


as much as keeping a current one

satisfied.

Source: Rob Yanker, Partner, McKinsey & Company

50 -100 times

Winning back a lost customer can cost


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



Everything about

customers

Interests & Plans

Info from agencies



Customer Loyalty Management


Enrollment Process

AccrualProcess

Redemption Process

Member Services

Customer Profile



Everything about

customers

Interests & Plans

Info from agencies



Oracle’s Siebel Loyalty Processes



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


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


• 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


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 complete history or member transactions relevant to Loyalty program - accrual, redemption

Front Office employees have complete overview of member profile, including Point balances.



Customer facing employees can review all the marketing & loyalty Campaign targeted to loyalty member.



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

http://www.mci.com/

http://www.siebel.com/



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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