6 Steps to Driving Customer Loyalty in the Automotive Indust
Driving Customer Loyalty
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Transcript of Driving Customer Loyalty
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Driving Customer Loyalty at Holland America Line
Olivia Dalesandro, Holland America Line
Emil Sarkissian, Loyalty Methods
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.2
Contents
IntroductionWhy Loyalty?Challenges Before SiebelWhy Siebel?Lessons LearnedTechnology Best Practices
What MattersTypical Challenges
Q&A
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.3
Introduction
Holland America LinePremier Luxury Cruise Line15 Ships, 800-2100 Passengers CapacitySailing to 7 ContinentsSubsidiary of Carnival Corporation
Loyalty Methods Implements Siebel Loyalty, Marketing and
Analytics First to Implement Large-scale US-based Airline
(Alaska Airlines) Extensive Loyalty experience in Airline, Hospitality
and Retail Industries Loyalty, Marketing, Analytics Implementer at
Holland America Line
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.4
Why Loyalty?
Understand Customer Preferences Increase Yield Performance Increase Repeat Business Rates Improve Guest Experience Strengthen Brand Affinity & Create Brand
Advocates Improve Guest Data Quality
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.5
Marketing Direction
Drive Repeat Business via Recognition of Customer Loyalty Status
Attract New Spending via Loyalty Incentives and Targeted Product Promotions
Use Ad-hoc Promotions to Dynamically Influence Specific Product Sales
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.6
Program Details
Official Launch – October 2009 Points Awarded to Guests for:
Number of Days Cruised On-board Spending = Extra Days Bonus Days for Booking Suites
Points Drive Loyalty Tier Status One-to-Four Star Mariners
Tier Rewards Include On-board discounts (wine packages, brunches, etc.) Third and fourth guests discounts Exclusive offers to members Free subscriptions, gifts, etc.
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.7
Challenges Before Siebel
Mainframe UI not user friendly No real-time changes to data All updates were entered by a
third-party vendor manually No ability to change the program and
create ad-hoc promotions No remote use of old system Poor response time for administration or
troubleshooting Almost impossible to change functionality
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.8
Why Siebel?
Part of a All-Encompassing CRM Program Sales, Guest Relations, Marketing and Loyalty Unified Customer View
Consistent, Friendly, Flexible User Interface Extensible with HAL-specific Data Ad-hoc Promotions are Clicks Away Seamless Integration with all our Customer
Touch-point Systems Allows HAL More Control over Data Handles High Transaction Volume
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.9
Results to Date
Increased guest satisfaction as a result of more valuable benefits compared to old program.
Guests actively working towards achieving higher loyalty status.
Tangible benefits attract new guests and help retain past guests.
Marketing is now able to leverage loyalty information to better target guest mailings. Use Tier Status and Lifetime Points Use On-board Spending Transactions
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.10
Lessons Learned
Prepare and Organize Start by Analyzing Existing Processes Visualize in Detail How You will Deliver
on Your Promises Standardize Processes Understand Customer Impact Evaluate Risk at each Customer Touch Point
Operational Procedures Across Multiple Properties Identify Training Needs Including Trainers, Trainees, Timing,
Materials, Delivery Methods Reach Out to Partners – Internal/External
Identify, Engage and Secure Resource Commitment from Internal and External Partners
Involve Partners in Collaborative Planning Early and Often
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.11
Lessons Learned
Know What You Want and Why Define Scope Clearly There is Usually More Than One Way to Accomplish
the Same Result – Try to Stay with Out-Of-Box Functionality when Possible
Know Where You Stand Manage Scope Aggressively Track Project Progress Frequently
Test, Test, Test Budget and Identify Test Resources During Initial
Planning Involve Test Lead from the Start Try to Conduct Testing at a Common Physical Location
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.12
Technology Best Practices
Siebel Loyalty Projects are Different Highly Visible to End Customer
Delivered through Customer-facing Technology Consistent Delivery becomes a Critical Success Factor
High Number of Customer Touch-points Large Number of Interfaces to Disparate Internal/External Systems
Loyalty is a Core Enterprise IT System Owns Large Volume of Data Large Volume of Online and Batch Transaction Processing
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.13
High Visibility to End Customer
Simplicity and Clarity of Program Rules Use Focus Groups to Improve Clarity Provide Training to Respond to Common Questions
Seamless Reward Tracking and Delivery Experience Don’t Settle for Workarounds
Consistency across Touch-points Use SOA Architecture and Design Patterns Avoid Point-to-Point Interfaces
Reliability in Uptime and Performance Consider Redundancy and High Availability Emphasize Performance Testing Devise Fall-back Procedures
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.14
High Number of Customer Touch Points
Interfacing with Many Systems Start with Integration Point Inventory Clearly Understand Data Ownership Get Data Samples as Early as Possible
Proactive Co-ordination with Internal/External Partners
Involve them Early during Planning Plan Collaboratively and Obtain Commitment
Understand their Resource Availability Understand their Priorities
Maintain On-going Productive Relationship Don’t Develop Interface Agreements in a Vacuum Avoid “transactional behavior”
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.15
Loyalty is a Core IT System
High Availability and Redundancy Consider Hosting Options Work with your Integrator and
Expert Services Architecture and Configuration Review Production Readiness Review
Consistent Performance to SLAs Understand Expected Volumes and Size Hardware Correctly Budget and Plan for Extensive Performance Testing Involve a Performance DBA Early during Technical Design Develop Consistent Job Scheduling Framework
Enhanced Interface Error Handling Develop a Consistent Error Logging Framework Develop a Clear Monitoring Strategy
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.16
Top Three Challenges
Scope Control Issues Poor Configuration and Customization Integration Dependency Slips
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.17
Scope Control Issues
The Meaning of Scope Scope is work. Work to change the
product and/or work to change the business process.
■ Scope Creep Avoid “Kid in Candy Store” Syndrome Avoid “Now or Never” Syndrome Develop Good “Scope Litmus Tests” to Maintain Focus
■ Inconsistent Organization of Scope Use Cases can Help Organize and Label Scope Consistently Keep Scope Labeled Consistently throughout Project Lifecycle.
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.18
Poor Configuration and Customization
Lack of Product Experience Avoid “hammer-nail” Syndrome
If all you Have is a Hammer, EverythingLooks Like a Nail
Talk to Companies who Have Implemented Loyalty Seek and Verify References
No sales/marketing budget can buy a great reference. Use Oracle Expert Services Reviews Seek Continuous Validation from Oracle TAM If Custom Work Looks Like Overkill, Use Cost Benefit
Analysis Always Consider Changing the Business Process First
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.19
External Dependency Slips
Invalid Assumptions about Partners Understand Partner Priorities and Constraints Understand Partner Downstream Dependencies Maintain Good Relationship
Long “Dark Periods Develop Jointly and Iteratively Seek to Validate Intermediate
Results Lack of Partner Accountability
Quantify and Explain Slip Impact Use More Granular Milestones Focus on Results, not Finger
Pointing
Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.20
Conclusion
Loyalty is Strategically Important Mission Critical Marketing Component
Siebel Loyalty Works Scalable and Flexible Platform Rich Feature Set to Centrally Manage Loyalty Programs
Pervasive Nature of Loyalty Includes Multiple Customer Touch-points Leads to Multiple Integrations inside and outside the Enterprise
Requires Slightly Different Implementation Approach Prepare Well Plan and Execute Collaboratively Manage Scope and Risk Aggressively