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Drive Customer Loyalty with Siebel Loyalty
Daniel Burian
Customer Experience Architect
Drive Customer Loyalty
August 2012
Michal Zboil
CRM Sales Consultant
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The following is intended to outline our generalproduct direction. It is intended for information
purposes only, and may not be incorporated into anycontract. It is not a commitment to deliver any
material, code, or functionality, and should not berelied upon in making purchasing decisions.The development, release, and timing of any
features or functionality described for Oracles
products remains at the sole discretion of Oracle.
Safe Harbor Statement
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Agenda
Customer Case Studies
Outline of Siebel Loyalty Solution
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Siebel Loyalty across 10 Industries
20072005 20092008
MajorUS
Airline
2004
Strong references
On-Premise and
Hosted/BPO deployments
Point and Suite
deployments
B2C, B2B and B2E
Deployments
Strong validation of the
latest Siebel Loyalty
Release
Now also available as
a BPO offering!
Now2006
6
Siebel Loyalty in Retail
Business Drivers:
First-Generation product-centricloyalty programs underperforming
Need to move strategic customer-
centric loyalty programs Cross-Channel ubiquity and need
to deliver consistent customerexperience driving need for anintegrated CRM platform
Siebel Loyalty Value Proposition
Integrated, scalable multi-channelloyalty solution that delivers onnext-gen customer centric loyaltyprograms
http://www.teknosa.com/msib21/formlar/CategoryList.aspxhttp://www.metrogroup.de/servlet/PB/menu/-1_l2/index.htmlhttp://images.google.co.in/imgres?imgurl=http://www.dailian-telecom.com/marriage/images/tokyo_tower.jpg&imgrefurl=http://www.dailian-telecom.com/marriage/japan.html&h=189&w=144&sz=4&hl=en&start=214&tbnid=QC2MsANwNCL4zM:&tbnh=103&tbnw=78&prev=/images?q=telecom+tower&start=200&ndsp=20&svnum=10&hl=en&lr=&sa=Nhttp://www.mobinil.com/default.aspxhttp://www.cplmg.com/http://www.semicron.com/possystem.htmlhttp://www.jawwal.ps/http://portal.gasnatural.com/servlet/ContentServer?gnpage=1-1-0¢ralassetname=1-1-0-0-0-0-0http://images.google.co.in/imgres?imgurl=http://www.credit-card-source.com/images/credit-cards.jpg&imgrefurl=http://www.credit-card-source.com/&h=227&w=200&sz=9&hl=en&start=10&tbnid=nWY-gscaEi910M:&tbnh=108&tbnw=95&prev=/images?q=credit+cards&svnum=10&hl=en&lr=8/12/2019 Oracle Customer Loyalty DanielBurian MichalZboril
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Siebel Loyalty in RetailThe CompanyStarbucks is the largest coffeehouse company in the world with over 9000
storesin the USand over16000 stores, world-over in 55 countries.
The ChallengeStarbucks market dominance is challenged with entry of Dunkin Donuts
and McDonaldsin coffee beverages market. In order to retain its loyal
customers, Starbucks decided to launch a loyalty program to reward,
recognizeand deliver great in-store experiences. Starbucks ran its loyaltyprogram on a hosted system (First Data), which lacked flexibility, scalability and
functional capabilities.
The SolutionIn order to deliver on its customer experience strategy, Starbucks decided to
bring customer data in-houseand migrate to a next-generation loyalty
platformthat is functionally rich, scalable and integration ready to: Drive a highly innovative and dynamic, customer-centric loyalty program Enable personalized experiences across channels through real-time integration
with PoS, starbucks.com and mobile
Manage huge transaction volumes (over 11,000 stores North America)
Starbucks chose Siebel Loyalty and Siebel Marketing solution.
The Journey So FarStarbucks went live on Siebel Loyalty in February, 2011. All 9000 stores inthe USand 1500 stores in Canada are integrated to Siebel Loyalty.
Starbucks customers can now earn stars for their visits and redeem their
free beverage loyalty coupons in real-timeat the PoSand earn recognition
status to enjoy exciting privileges (free Wi-Fi, birthday drink, etc.).
In the next phase of deployment (summer of 2011), Starbucks will go-live on
Siebel Marketing and enhance its loyalty program value proposition by Rewarding customers based on who they are and what they bought, cross-
channel brand advocacy and loyal behavior
Enabling customers to recognize themselves and redeem their coupons at the PoSusing their mobile phones.
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My Starbucks RewardHighlights Starbucks PoS systems across USA and Canada are connected in real-time with Siebel
loyalty (in addition to starbucks.com).
Customers have to own a pre-paid Starbucks card to be able to enroll into My Starbucks
Reward and earn stars
As of today, Starbucksalready has 150 M cardholders and 10 M My Starbucks Reward
members
With its new loyalty program Starbucks wants to attract new memberships and expect it to reach
over 100 M
6 Million customers visit Starbucks everyday in the US - they earn stars approx in 4 hours
after their visits through a recurring loyalty batch engine process run 24 x 7/365 days a year
With the success of its Siebel Loyalty rollout in North America, Starbucks is now working
on international deployment strategy
Alsea, Starbucks franchise in Latin America has also initiated implementation of SiebelLoyalty
Business Functional Area Processing Mode Key Performance Indicator
POS Real Time More than 300 txn/s
POS Real Time Average 300ms/txn (round trip POS to Siebel)
starbucks.com Real Time More than 60 txn/s
starbucks.com Real Time Average 1s/txn (round trip .com to Siebel)
Loyalty Transactions Batch 500 Txn/s (10 steps process)
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http://www.nasdaq.com/aspx/call-transcript.aspx?StoryId=200103
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Loyalty Case StudyFNAC
Organization & Issues ResultsObjectives
Founded in 1954 Over 1.8 million members
Turnover 3.8 billion
67 stores in France
Leading retailer of culture andleisure products in France,Belgium, Spainand Portugal.
Issues:
Obsoleteexisting Loyaltyapplication
Inflexibleand costlylegacy system
Designed for 1/6 of actual
members
Improvecustomersegmentation(e.g., tier, type,value)
Unique customer repository
Treat customers in a targetedmanneracross every touch pointby unifying their systems
Increaseprogram and promotionflexibilitywhile significantlyreducing costs
Siebel Loyalty
Loyalty Manager: 20 users
Loyalty Member Services
Representative: 780 users; 700 POS; Q1 2006; impl Unilog
750 000 transactions processedweekly
Grown membership from 1.6million to 3.8 million
Members buy 3x more often and10x more on average than non-members
Access to all of a membersinformation on a single screen forfast, accurate customer insight
More effective, customizedpromotions, such as happyhourawardspoints, that rewardtherightpersonattherighttimeandplace
Shortenedthe timeneeded to trainthehostsand hostesses stationed
at La Fnacsmembership standsand customer-service counters
Solution
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Case StudyThe Body ShopTransforming Loyalty Program Effectiveness
WHY ORACLE
Strong foundation and data model, with a single solutionfor the entire domain, from loyalty program managementto marketing campaign and call centers
COMPANY OVERVIEW
The Body Shop is the second largest cosmeticfranchise in the world, with over 2,500 storesin over 60 markets worldwide
Founded in 1976, The Body Shop becomespart of the L'Oral Group in 2006
4M customers in their worldwide CRMdatabase
CHALLENGES/OPPORTUNITIES
Move from discount strategy having a badimpact on the brand
Recruit the long-tail customers
Provide a much better and integratedcustomer experience across touch points
Main objective is to drive traffic in stores
SOLUTIONS
Siebel Loyalty
Siebel Marketing
Siebel Call Center
Siebel Analytics
RESULTS
Siebel Loyalty deployed in Belgium and Austria
Live since November 2010 after 6 months project(including new website & new POS deployment)
Real-time integration with POS for online redemption
Integrated with SAP ERP
Expected higher number of transactions frommembers, versus with the previous program, for thesame basket
13 2012 Oracle CorporationProprietary and Confidential
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Agenda
Customer Case Studies
Outline of Siebel Loyalty Solution
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Customer Loyalty ManagementIncrease the value and duration of your most important relationships
Next-generation solutionfor creating innovative,
customer-centric loyalty
programs
Enables rapid partnerset-upand management
Delivers pre-built loyalty
processesand task-basedflows
Provides actionable insightinto member behavior with
unified customer views
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Loyalty PromotionsPromotions enables you definevarious logic of your Loyalty programs
Simple Promotion
Simple Frequency Promotion
Complex Frequency Promotion
Joint Promotion
Time-basedPromotions Theme-BasedLoyalty Clubs
Event-basedPromotions
Activity-basedPromotions
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 promotions rules
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Hot Topics in Our Loyalty SolutionYou can benefit from our new key capabilities
Loyalty 1:1 Business User Empowerment Industry Best Practices
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Loyalty 1:1Last Mile of Customer Intimacy
Event-Based Promotions
Time-Based PromotionsTheme-Based Loyalty Clubs
Drive brand
affinity and
stickiness with
targeted and
exclusive
'Theme- based
Loyalty Clubs
Surprise andDelight
members with
personalized
rewards linked
to special
lifecycle events
Anniversary
Birthday
Christmas
..
Drive traffic,
channel selection
and profitable
customer behavior
with Time-based
Promotions
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Theme-Based Loyalty ClubsLast Mile of Customer Intimacy
Launch new Parents Club Target new/expecting
parents to join Parents Club
Targeted clubs for members with
special interests
Modeled as time-bound loyalty
promotions with exclusiveloyalty
entitlements
Eligible members can enroll for a fixedduration
Deliver special promotions onbaby products for 2 years
Offer them Kindergarten Club
.After 2 Years
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Time-Based PromotionsLast Mile of Customer Intimacy
Rewardmembers fortheir
transactions and activitiesin a
specified time window
Include new Calendar
promotion object to flexibly
define time-based promotions
Personalized rewards based
on member profile and
preferences
You can create promotions that reward purchases made on specific days/times or madefrequently:
Purchases made between 4 and 6 PM
Purchases made on Mondays
Purchases made during the first
week of the year.
The third purchase made ina given month.
The second purchase made in the same
week.
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Business User EmpowermentInnovation at the Speed of Business
Graphical Promotion Designer
Enrich business user
experience with drag-
n-drop interface to
graphically sequencepromotions in the
desired order of
execution
Hierarchical Rules Author
Improve usability
with mental model-
based hierarchical
rules editor
Rule Templates Library
Enhance business
user productivity
with library of re-
usable rules
templates
Advanced Transaction Simulation
Increase user insight
and improve
customer
serviceability with
advanced simulation
and processing log
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Graphical Promotion DesignerInnovation at the Speed of Business
Drag & dropuser interface
Guided promotion execution
(parallel & sequential)
Advanced processing with
in-memory transient results
to support complex
promotions
User-defined process flow
controls1
2 43 5
1
2 3 4 5
30%Voucher
2Cashback
10%Bonus
Check TransactionEligibility
(>25)
Calculatepoints
AnniversaryBonus
Event BasedPromotion
Time & TransientValue Based
Promo
Theme BasedPromo
500Points
Weekday LeisurePromotion(50 points)
Outdoor ClubPromotion
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Industry Best PracticesBest-in-Class Processes for Retail and other industries
Dynamic Vouchers
Deliver
innovative
rewards and
instantgratification with
dynamic
vouchers
Recurring Awards
Drive customer
behavior and
manage points
liability with
recurring awards
Modularized Loyalty Engine
Alignsystem
resource utilization
tocustomer service
levelswith
enhanced user-
controls
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Recurring AwardsDrive Recency, Frequency and Monetary Value
Redemption Velocity is the key indicator
of the success of a Loyalty program
Members who redeem their points and get a rewardare more likely to increase program participation,
churn at a lower rate, increase spend/frequency,
and stayengagedwith the program and brand
longer1
Multiple redeemers outspend non-redeemers on an average of 3:12
Select Eligible Members
(Point Balance >= 3000)
Run Batch
Redemption Process
Redeem
Members Points
Reward Vouchers
to Members
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Loyalty Analytic - Complete InsightComplete visibilityand controlof your Loyalty program
Drill to promotions torenew or add
What promotions exist tosupport these segments?
What is the redemption
trend over the past 12months?
Drive Membership
Growth
What segmentshave the highestredemption rate?
What are the topredemption products?
Business
Objectives/Issues
Gain
Insights
Take
Action
Loyalty Program Overview
Loyalty Points Analyses
Loyalty Member Tiers Analyses
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Main Upcoming ThemeSocial LoyaltyDriving profitable social behavior and cultivate community of social influencers
Social Promotions
Setup and launch
powerful promotions
based on socialattributes combined
with tracked profile
and behavior in
CRM
Social Rewards
Incent positive social
behavior and
customer advocacy
Integrated Gamification
Drive brand affinityand engagement by
assigning coveted
levels and badges
Outbound Posts
Distribute loyalty
promotions
seamlessly onto
social networks,
increase speed-to-market and expand
customer reach
Sentiment Analysis
Automatically track
customers social
sentiment to drive
actions and
responses, for brand
reinforcement
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Loyalty Solution From Customer PerspectiveExamplehow you can interact with your loyalty program members
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