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Date created:August 16, 2013

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Loyalty Management You can use the SAP Customer Relationship Management (SAP CRM) application to support business processes in the area of loyalty management, fromplanning of loyalty programs, through management of memberships and loyalty points, and processing of member activities, to customer self-service in the CRMWeb Channel.You can use the objects and functions described here to track customer behavior, to identify which customers are most valuable and take steps to retain them,and to encourage specific customer behavior.

IntegrationThe software for loyalty management uses or is integrated with various other areas or functions in SAP CRM:

Related Areas or Functions More Information

Marketing framework in SAP CRM Core Objects and Functions in Marketing

Rule builder Rule Builder

Business roles:Loyalty professional (LOY_PRO)Loyalty professional IC agent (IC_LOY_AGENT)

Customizing for Customer Relationship Management under UI Framework Business Roles

Channels:CRM Web ChannelInteraction Center WebClient

CRM Web ChannelInteraction Center WebClient

Sales orders Sales Orders

PrerequisitesFor configuration settings, see the Loyalty Management business scenario in SAP Solution Manager.

Loyalty Program An instrument in marketing used to organize and implement loyalty management. You use this business object to encapsulate all aspects of your loyalty program, including the following:

You design your loyalty program to support your organization's strategy. You make the settings for the design in Customizing.When you have made the settings in Customizing, you set up the loyalty program for use in your loyalty management business scenario.You can create multiple loyalty programs. Your business partners can participate as members in multiple loyalty programs.Members of your loyalty program can earn and redeem loyalty points by doing defined member activities.

StructureLoyalty programs are an object type and category of marketing project. In the marketing project hierarchy, you can create reward rule groups and campaigns inloyalty programs. You can create reward rules in reward rule groups.

Loyalty Program Design

For each loyalty program type, you define parts such as the following:TiersLoyalty PointsDynamic Attributes

For more information about the settings for these parts, see Customizing for Customer Relationship Management under Marketing Loyalty Management -Design .

Loyalty Program Setup

In a loyalty program, you can define parts such as the following:Program PartnersReward RulesCampaignsGeneric services such as notes, attachments, and change history

Statuses

A loyalty program can have one of the following system statuses:

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System Status Subsequent System Status

Created Released

Released Locked or Finished

Locked Released or Finished

Finished None

The system status of the loyalty program affects the operations that you can do:

Operation System Status

Created Released Locked Finished

Delete loyalty program Yes No No No

Edit loyalty program Yes Yes No No

Create, edit, or delete rewardrule group

Yes Yes No No

Create, edit, or deletecampaign

Yes Yes No No

Create membership No Yes No No

Process member activities No Yes No No

Integration

Partner Processing

When you create a loyalty program, the system assigns you to the loyalty program with the partner function Employee Responsible (00000014). As standard,this partner function uses the access sequence Organizational Data: Employee of Responsible Organizational Unit (CH08).Optionally, you can assign the person responsible for the loyalty program with the partner function Loyalty Manager (LOY_MAIN). This partner function is forinformational purposes only in the loyalty program.For more information about the use of partner functions, see Partner Processing.

More InformationMemberMember Activities

Loyalty Points You use loyalty points to influence and reward members of your loyalty program.

IntegrationYou define loyalty points as part of a loyalty program type. For more information, see Loyalty Program.You can define that qualifying points result in the system moving a member to a different tier.The system credits and debits loyalty points to a point account. For more information, see Point Account Set.

PrerequisitesIn Customizing for Customer Relationship Management you have done the following under Marketing Loyalty Management - Design :

You have defined a loyalty program type under Basic Settings Define Loyalty Types .You have defined a point profile and a point expiration profile under Loyalty Programs Define Profiles for Loyalty Program Types .

In Customizing for Loyalty Management - Execution, you have defined point qualification types under Point Accounts Define Point Qualification Types .

FeaturesYou can define multiple point types. For each point type you assign a date calculation procedure to use as an expiration procedure. This determines the periodbetween a member earning a redeemable loyalty point and, if applicable, the expiry of that loyalty point. Alternatively, you can define that loyalty points do notexpire.You assign a conversion factor to each point type. The system uses the conversion factor to convert loyalty points of each point type into a base value that is usedduring the combinability evaluation for the reward rules. For more information about combinability, see Reward Rules.You assign point qualification types to each point type. The following point qualification types exist:

RedeemableMembers can redeem redeemable points against services or products as defined in the loyalty program. Members can also buy additional points, if they havenot earned sufficient points for redemption. Redeemable points can be subject to expiration after a certain date.Qualifying

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The system uses qualifying points to determine the next tier level for a member when the current tier expires. Members cannot redeem these points. Qualifyingpoints do not have an expiration date, but they expire with the tier.

Dynamic Attributes You use dynamic attributes to track member behavior in the context of reward rules or your loyalty program, and to trigger actions, for example, to change amember's tier.You can define dynamic attributes for use as counters, or for recording dates or text.Dynamic attributes are a key function in the execution and evaluation of your loyalty program.

IntegrationYou must assign dynamic attributes to your loyalty program for them to be available in rule conditions and actions. You assign the dynamic attributes to yourloyalty program or to a reward rule in your loyalty program. You can combine different dynamic attributes in a loyalty program or in a reward rule.The system responds to member activities according to your rules, and updates dynamic attributes accordingly.You can define that a change in the value of a dynamic attribute triggers a change of tier.

PrerequisitesYou have defined dynamic attributes and assigned them to your loyalty program in Customizing for Customer Relationship Management under Marketing Loyalty Management - Design Loyalty Programs Define Dynamic Attributes .

ExampleYou use dynamic attributes to do the following:

Recognize and reward your most frequent customers.You assign a dynamic attribute “Number of purchases” to a reward rule. You set up the reward rule so that the system updates the dynamic attribute inmemberships. You define that members can move to the next tier in the tier group after 20 qualifying purchases. When a member in the “reward” tier groupmakes a qualifying purchase, the system updates the dynamic attribute in their membership. With the tier change reward rule, the system checks if thedynamic attribute reaches the value 20, and if so, moves the member to the next tier.Find out which of your usually frequent customers have not made a recent purchase.You assign the dynamic attribute “Date of last purchase” to another reward rule. You set up the reward rule so that the system updates the dynamic attribute inmemberships. You use the dynamic attribute as a condition, to find out when a member in the “gold” tier of the “reward” tier group has not made a purchase forover one month.

More InformationReward Rules

Reward Rules Reward rules are rules in loyalty management that contain the conditions of the loyalty program. If the member activity of a member fulfills the conditions, theloyalty engine executes the assigned rule actions. You can also define your own actions, which are triggered by the reward rule execution.Examples of rule actions are as follows:

Earn pointsChange tierRedeem pointsUpdate attributes

A reward rule states that a customer of an airline company receives 1000 bonus points if he or she flies 3 times within 1 calendar month.Two reward rules are required to calculate the bonus points:1. A reward rule that checks the type of member activity and counts the number of times the member has flown.2. A reward rule that checks at the end of the month how many times the customer has flown and, if the rule is fulfilled, credits 1000 bonus points to the point

account (scheduled reward rule).

IntegrationReward rules and reward rule groups are marketing project types (for more information, see Marketing Project).

Prerequisites

Example

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You have created a loyalty program. For more information, see Loyalty Program.You have completed Customizing for the reward rule management business process. For more information, see SAP Solution Manager.

Features

Reward rule

The reward rule contains the conditions that must be fulfilled by the member activity for the corresponding rule actions to be executed. There are different types ofreward rules, which are either based on a template or defined in expert mode. Reward rules are grouped in reward rule groups. Each reward rule has versions,which are created automatically by the system.You can also use scheduled reward rules. For scheduled reward rules, you must create counters in Customizing and make settings during the reward rule typedefinition. For more information, see Dynamic Attributes.

Reward rule hierarchyThe reward rule hierarchy has 3 levels: The reward rule is located below the reward rule group and the reward rule group is located below the loyalty program.Loyalty program

Reward rule groupReward rule

Reward rule group

The reward rule group consists of reward rules that are used together when a member activity is processed according to these rules. Each reward rule group hasa purpose, for example, tier change or bonus points. The reward rule group type determines whether you can edit the reward rule with a template or in expertmode.

Version

When you define a reward rule group or reward rule, the system automatically creates a version with a unique sequential number. In this version, you can definethe rules that form the basis of your reward rules. For more information, see Rule Builder.When you copy a reward rule, the system creates a new version of the same reward rule with the end date 31.12.9999.

Versions in the reward rule hierarchy:A version on reward rule group level is a program partner, such as a car rental company.A version on reward rule level is a copy of a reward rule with a different validity date.

Support for simulation systems

You can use a separate system to simulate reward rule groups and reward rules. This way, you can test your reward rule groups and reward rules before usingthese in a production system.Note that you first need to transport your Customizing settings for loyalty management to the simulation system before you can use this function. You must transportthe versions of the reward rule groups and the related reward rules between the simulation system and the production system.

Activities

Define and assign reward rules

You can define reward rules using a template or in expert mode. You must assign the reward rules you have created to a reward rule group. You can set up anauthorization workflow for your reward rules and reward rule groups. For more information, see SAP Business Workflow.

Define reward rules using templateIf you define reward rules using a template, you can use predefined conditions and values only. This prevents any mistakes being made when the reward rulesare created. If you want to define complex rules or the template is insufficient for your rules, you can deactivate the template. You can then define your rewardrules in expert mode only and can use all conditions, operators, formulas, and actions.

Once you have deactivated the template, you cannot activate it again.

You can add your own templates to the application in Customizing, by choosing Customer Relationship Management Marketing Loyalty Management -Design Basic Settings Define Templates for Reward Rule Maintenance . For more information, see SAP Note 1248414.

Define reward rules in expert modeYou can define complex reward rules in expert mode. You can choose the required rule conditions from all available conditions. Conditions determine which fieldsare active in the reward rule definition. For more information, refer to Customizing for the rule builder under Customer Relationship Management CRM Cross-Application Components Rule Builder .

Define reward rule sequence

If you have defined more than one reward rule, you must also define a sequence.

Combine reward rules

Example

Note

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You can define which reward rules can be combined. If you have defined conflicting rules, you can resolve the conflict by assigning the appropriate combinabilitytype to the reward rule group.The following combinability types are available as standard:

AllMaximum PointsMinimum PointsBy Sequence

Report

You need the following report to transport reward rule data from the WebClient UI to the rule builder. To execute the report, from the SAP Easy Access screen,choose SAP menu Architecture and Technology ABAP Workbench Development ABAP Editor , enter the report nameRLOY_ENGINE_CACHE_REFRESH and choose Execute.

Sponsoring partners

Sponsoring partners are program partners that sponsor a reward rule. Each sponsoring partner can be assigned a certain percentage. For more information, seeProgram Partners.

Member A member is a participant in a loyalty program, and is represented by an individual account or consumer. In the standard shipment, the member is an accountand/or contact person.

StructureMembers are assigned to a membership.A member is an individual account, for example, “Robert J. Cole”.

More InformationMembershipMembership CardsMember Activities

Membership Membership represents the assignment of a particular member or individual to a loyalty program. An individual account can be a member of various loyaltyprograms; a membership exists for each one, containing the information related to the member.The membership represents the relationship between members and the program and tier (across tier groups). It is the combining element, containing the typicaldata and advantages that a loyalty program membership brings (for example, earning points for specific business events, or specific participation benefits).

PrerequisitesYou have defined a loyalty program. For more information, see Loyalty Management.You have defined basic settings, loyalty programs, and channel integration in Customizing for Customer Relationship Management, by choosing Marketing Loyalty Management – Design. You have maintained basic settings, memberships, point accounts, member activities, and processing settings in Customizing for Customer RelationshipManagement, under: Loyalty Management – Execution.

FeaturesStandard MembershipIn a standard membership, the point account set is exclusive to the member. Qualifying points are earned towards an upgrade of the member's tier, andredeemable points can be redeemed for products or services.

Michael Adams is a Platinum card holder (that is, he is in the Platinum tier) in a particular loyalty program. He has earned nearly 20,000 miles for flightsmade this year, and earned special points for the Valentine's Day promotion offered by the airline. He has earned nearly enough qualifying points to beupgraded to the Diamond tier. He can redeem his non-qualifying points for goods or services from a catalog.

Shared Account MembershipIn a shared account membership, members may belong to different tiers in the loyalty program, but the point account set is shared between members.

Example

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Qualifying points are specific to each user because they may be in different tiers, but redeemable points are pooled and can be redeemed for products orservices by any member.

Katrin Bauer and John Miller are good friends. Katrin is a Silver card holder in the World Flyer Plus program, and John is a Platinum card holder in theSenator program. The miles, points, and so on, that both of them earn go into the same point account set. Katrin and John earn their own qualifying pointstowards upgrades, but they share non-qualifying points, which can be redeemed by either of them.

Group MembershipIn a group membership, the members belong to the same tier in the loyalty program and share the same point account set. Qualifying points and redeemablepoints are pooled and can be redeemed for products or services by any member.

The Moore family has a family card for a loyalty program. All point types earned by any member of the family go into the same point account set, and canbe redeemed by any member of the family.

Memberships can be split and merged as required.Point Account SetA point account set is the set of all point accounts for a particular membership type, where a point account is the balance of points of a specific point type.Point accounts can expire after a specified expiration date, or after a specified period of inactivity.Point types include the following:

Qualifying points, which are earned towards a tier upgradeRedeemable points, which can be transferred or merged, and can be redeemed for services or goods from a catalog

Points are processed against the rules you defined, and result in actions (such as change tier, update attributes, redeem points).Customers can implement their own actions. Processing can happen either online or in batch mode.Dynamic AttributesYou use dynamic attributes to track member behavior in the context of reward rules or your loyalty program, and to trigger member activities, for example, tochange a member's tier when the member has earned sufficient points. Depending on the membership activity type, you can specify certain attributes.Membership CardsA membership card is created by default during creation of a membership.Each member of a membership holds a membership card, which reflects the program and tier to which the card holder belongs. Membership cards can havedifferent statuses, for example, lost or stolen, depending on information provided by the CRM customer, either by using Web Self-Services or Interaction Center.Customers can create an external card number, for example, to support different standard codes. In member activities, the external card number can be usedto identify a member.

ActivitiesYou can transfer or donate points from one membership to another.

Points to be transferred or donated must be in a point account set in the same loyalty program.

You can split or merge memberships.Before splitting or merging memberships, each member of the memberships affected must consent to the action. For more information, see Splitting andMerging of Memberships.

More InformationLoyalty ProgramStatus Management in Business TransactionsLoyalty PointsPoint Account SetDynamic AttributesMember ActivitiesSplitting and Merging of MembershipsMembership Cards

Tiers You use tiers to categorize the members of your loyalty program in terms of the member activities that they do. You do this to recognize your most valuablecustomers. You can use this information as a basis for targeted marketing, or as an incentive for loyalty to your organization.

PrerequisitesIn Customizing for Customer Relationship Management, you have created a profile for your loyalty program type under Marketing Loyalty Management -Design Loyalty Programs Define Profiles for Loyalty Program Types .

Example

Example

Note

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FeaturesYou can create multiple tier groups. You use multiple tier groups to make it possible for members to move up or down the tiers in one tier group, independent ofthe tiers in the other tier groups. Members can have only one active tier in each tier group at any time. For example, you have one tier group with tiers that expireat the end of each year, and another tier group with tiers that never expire, to track the lifetime value of the member.In each tier group, you define an entry-level tier, and a subsequent sequence for the tiers. This sequence defines which tier a member moves into when theymove up or down the tiers in a tier group.You also define whether your tier group is public or private. The system does not display private tier groups or tiers to members. You use this function to, forexample, determine your most valuable members or if you do not want to publicize the benefits of a particular tier group.For each tier, you assign a date calculation procedure to use as an expiration procedure. This determines the period between a member entering a tier and, ifapplicable, the expiry of being in that tier. On expiry, the loyalty engine executes an action that you define, such as moving the member to the previous tier in thesequence.

More InformationLoyalty ProgramsLoyalty Points

Splitting and Merging of Memberships Splitting a membership also requires splitting of the account – this is necessary, for example, in the event of a divorce. In each case of a split, a separatestandard membership is created.It may also be necessary to merge memberships, for example, as the result of a new company travel policy.For any merge or split of a membership, the approval of all members is necessary.

PrerequisitesIn Customizing for Customer Relationship Management, you have defined a split ratio for the points split between point accounts, by choosing LoyaltyManagement - Execution Memberships Define Membership Settings .

ProcedureTo merge a membership, proceed as follows:1. Use the membership search to navigate to and select the first membership that you want to merge.2. Under More, click Merge Membership.

The Membership: Merge page appears.You see the data of your selected membership under General Data: Prime Membership. Unless you specify otherwise, the membership ID of the primemembership becomes the membership ID of the merged membership.

3. Under General Data: Secondary Membership, use the dropdown list to select the ID of the membership to be merged with the prime membership. The othergeneral data is filled automatically.

4. If you want to create a new membership from the two that you want to merge. Under Result Membership Options, select Create New. From the ResultMembership Type dropdown list, select the membership type for the new membership.

This feature is grayed out when the new membership can only have the same type as the prime membership. For example, a merge involving a groupmembership as the prime membership can only be a group membership, so no change is possible.

5. Click Merge.To split a membership, proceed as follows:1. Use the membership search to navigate to and select the first membership that you want to split.2. Under More, click Split Membership.

The Membership: Split page appears.You see the data of your selected membership under Origin Membership.

3. Under New Membership, use the dropdown list to select the member and split rule. For the latter, the split refers to the percentage of redeemable points. Forexample, 90/10 means that 90% of the redeemable points remain with the origin membership and the other 10% go to the new member that is created bythe split.

4. Click Split Membership.In the event of errors occurring during a split or merge, an error message appears and the procedure halts.

Membership Cards Members of a loyalty program hold membership cards that represent the membership of that particular loyalty program. A membership card reflects the program

Note

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and tier to which the card holder belongs; for example, the named holder of a World Flyer Plus Gold card is in the Gold tier of a World Flyer Plus program.

PrerequisitesYou have made settings for membership cards in Customizing for Customer Relationship Management, by choosing: Loyalty Management – Execution Memberships Define Membership Card Types, Layouts, and Status .You have also made settings for the membership card status and number range in Customizing for Customer Relationship Management, by choosing LoyaltyManagement – Execution Basic Settings Define Status Profiles and Loyalty Management – Execution Basic Settings Define Number Ranges .

FeaturesOne or multiple cards can be created and assigned to a membership.For example, a single card is created for a standard account, whereas several need to be created for a group account.Each card is related to an individual account within the membership.Cards can have different statuses, for example, lost or stolen, depending on information provided by the CRM customer, either by using Web Self-Services orInteraction Center.There is BAdI support to create cards either in the CRM core program or the Interaction Center.A card is created by default during creation of a membership.Customers can use BAdI: Generation of External Card ID to create an external card number, for example, to support different standard codes.In member activities, the external card number can be used to identify a member.

More InformationMembershipsTiers

Point Account Set A point account set stores the transaction history of the membership. For example, how many points were posted to the point account, on what date, for whichactivity, and by which reward rule. A point account set is a logical grouping to hold specific point accounts together.

IntegrationA point account set has a direct bearing on the membership. Any activity performed by the membership could result in one or more point transactions. To achievethis, a working loyalty program must be set up. A membership to this program must exist and this membership should have performed an activity.

PrerequisitesTo run report RLOY_PT_ACCT_EXPR_RUN, you have maintained the relevant server group in entry SERVER_GROUP_BATCH of table LOYC_BATCH_PARAMin Customizing for Customer Relationship Management, under: Marketing Loyalty Management Processing Settings Define Batch Processing Parameters

.

FeaturesWhen a member registers for a loyalty program, a membership is created. There can be multiple memberships for a loyalty program. Every membership has apoint account set. Many memberships can share a point account set (shared account membership).A point account set contains one point account for each point type in the program. Therefore, multiple point accounts can exist because we deal with multiple pointtypes within one loyalty program/membership. For example, a loyalty program of an airline that has two point types, “miles” and “special miles”, has a separatepoint account assigned to each type.A point account is the specific account where all earned, redeemed, or expired points are credited and debited, and the point balance is calculated.A point transaction is a record that stores the information after a member activity is processed. For example, a member activity of the type “flight”, created andprocessed by the loyalty engine, results in transactions performed on the point account like earning or redeeming points, which affects the point balance.Points ExpirationPoints expire based on the expiration profile defined for the loyalty program. The actual expiration is based on the expiration date of the transaction or the inactivityof the membership.You define the parameters for expiration of points in Customizing for Loyalty Management, under Customer Relationship Management Marketing LoyaltyManagement — Design Loyalty Programs Define Profiles for Loyalty Program Types The following reports are available for expiration of points:

Date-based point expiration: When a member activity is processed, the transaction has an expiration date, which is calculated based on the expiration profileof the loyalty program. For each “earn”, posted on a point account, an expiration date is calculated. On executing this report, all the redeemable points oftransactions whose expiration dates are in the past and whose points are not redeemed, expire.Report Name: RLOY_PT_ACCT_EXPR_RUNPoint expiration based on inactivity: On executing this report, all unused points from point accounts where there has been no member activity for a specifiedinactivity period, expire.Report Name: RLOY_PT_ACCT_INA_EXPR_RUN

Redeemable points can expire after a certain time period, after which they cannot be used for redemption anymore. This expiration time period is defined in therules for the assigned membership in the loyalty program. Qualifying points only expire with the tier expiration where the member is upgraded to a higher tierlevel.

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ActivitiesA loyalty program is set up with all the parameters: rules, point types, and expiration profile. When a member activity is performed, the system processes themember activity based on the rules, and awards points to the member. These points are in turn transactions that are stored in point accounts.

More InformationMember ActivitiesMemberMembershipCustomer Access to Loyalty Programs

Membership Statement A membership statement combines read-only information about the current membership and the point account data. In this way, the statement gives an overviewof the status of the current membership.The membership statement is freely definable and is available online.

PrerequisitesYou have defined settings for outbound correspondence in Customizing for Customer Relationship Management, by choosing Loyalty Management – ExecutionMemberships Define Settings for Statement Generation.

FeaturesMembership statements can be triggered on demand. IC agents and standard CRM users can individually create membership statements in PDF format.Data from a membership statement can be integrated into marketing campaigns, for example, to offer special additional benefits based on existing ones oroffers regarding the current point account.You can access the PDF statement function from the Membership search result list or from the Membership overview page.

More InformationMemberMembershipPoint Account Set

Member Activities This function captures the activities performed by a member in a loyalty management system. A member activity is an activity or event related to a specificmembership that is processed against the reward rules defined in the loyalty program. Member activities are also used to evaluate memberships for potentialchange in tier levels.Members earn points whenever they undertake certain member activities, such as completing a flight or purchasing certain products. They can redeem theearned points to receive benefits, services, or products.

IntegrationA loyalty program is created to provide benefits to the member. The member enrolls his or her membership to this program. Once a member activity is createdusing this membership, it is processed and points are accrued or redeemed to a point account linked to the membership. The member can access the accountusing a card linked to the membership.

PrerequisitesA loyalty program should exist. The member obtains a membership to enroll in a loyalty program.

FeaturesMember activities are grouped into different categories and types. These categories and types classify the various member activities of a member in loyaltymanagement. A category is a grouping of similar types. For example, flight, points, and point purchase are types of category Earning Potential. These categoriesand types determine which rules apply to which member activity.You define the categories and types in Customizing for Loyalty Management, Loyalty Management —Execution Member Activities Define Member ActivityCategories and Types Using a report program, it is possible to create member activities based on data coming from third-party systems in a standard format such as a flat file or XML.This is achieved using the Legacy System Migration Workbench (LSMW) tool.When a member activity is created, it is sent for processing to the loyalty engine. The loyalty engine processes the member activities against the rules defined in

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the loyalty program, either through an online process or batch processing. The member activity is checked against the rules defined in the loyalty program. If themember activity meets the conditions of a rule, then the action(s) are performed as specified in the rule. This can result in either:

Earning pointsRedeeming pointsChanging tierUpdating dynamic attributes maintained in the membership

Member activities are processed in two ways:Online Processing: You click the Process button in the Overview page or select multiple records in search Result List view and click the Process button.Batch processing: Member activities are moved to Ready for Batch status from the UI or through creating records directly in the “Ready for Batch” status usingthe LSMW report. When a member activity is created and set to this status, a report program RLOY_ENGINE_SCHEDULE scheduled by the loyalty enginepicks up these activities from the Ready for Batch status and processes them.

A processing log displays detailed information about how a member activity was processed against the rules in the loyalty program.Simulation of member activity processing: A trial run in the test system to check how the rules behave in the production system. These rules can then beimported to a production system. Member activities with a future date can be simulated but not processed.

More InformationPoint Account SetMemberMembership

Program Partners You use program partners to add value to your loyalty program, for example, by enabling members to earn or redeem points for complementary goods orservices, and to potentially increase the market power of your organization. In addition, by including the products or services of your program partners, it may bepossible to increase your insight into the spending patterns of your customers.You can additionally assign program partners as sponsoring partners for reward rules, for example, for reward rules that are aimed at supporting the programpartner's products or services.You assign a status to a program partner to determine whether the partnership is Active, Inactive, or Pending. The default status is Pending.You define the date on which the program partner joins the loyalty program. The default date is the date on which you assign a program partner to the loyaltyprogram.

IntegrationA program partner is an account. To define an account as a program partner, you assign the business partner role Loyalty Partner (CRM015) to the account.You assign program partners to your loyalty program. To assign a program partner as a sponsoring partner, you assign them to a reward rule.

More InformationBusiness Partner Roles

Customer Access to Loyalty Programs Companies use a range of loyalty programs as a tool to build relationships, and retain customers in commoditized markets with low switching costs. Nowadays,the Internet is a key element in building business relationships with customers. It is often the channel of choice for customers to perform transactions (such asbook flights or hotels, search or buy products, and so on) and interact with companies. More specifically, the web provides an easy way for companies toadvertise their loyalty program or programs and products, and for customers to register. After they have registered, members can access their membershipaccount to check account status, make modifications, redeem points, and so on, at their leisure.Call centers/interaction centers are also an important channel for customers who want to perform a range of activities from purchasing products, to creating orchanging a membership, or redeeming points, and so on. To ensure customer satisfaction, call centers have access to the latest information and are integratedwith other channels and systems.

IntegrationLoyalty Management is integrated with the following SAP CRM channels:

CRM Web Channel

Loyalty integration is only available for SAP E-Commerce with SAP CRM. In SAP E-Commerce with SAP ERP, loyalty integration is not supported.

Interaction Center WebClientIn the Interaction Center (IC), the business role Loyalty IC Agent (IC_LOY_AGENT) is available. Membership management is integrated into the IC, and the

Note

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agent has access to all the membership management activities available within the WebClient UI. See the Membership Overview below.A loyalty program is offered by a company and customers can access it through these channels.

PrerequisitesFor configuration settings, see the Loyalty Management business scenario in SAP Solution Manager.

General

You have defined a loyalty program. For more information, see Loyalty Management.You have defined basic settings, loyalty programs, and channel integration in Customizing for Customer Relationship Management under LoyaltyManagement - Design .You have maintained basic settings, memberships, point accounts, member activities, and processing settings in Customizing for Loyalty Management -Execution .If you want to use products in the loyalty scenario, in master data, assign category ID LM_REWARD_CATEGORY to the product. You have also maintainedattributes such as points or miles for the set type REWARD_LOY_PRO in the product master data. Then, in the Point Information assignment block, maintainthe loyalty scenarios and their respective values.You have made settings for sales order integration in Customizing for Customer Relationship Management under Loyalty Management - Design ChannelIntegration Define Point Types for Sales Order Integration .

Loyalty Management in Web Channel

For Loyalty Management in Web Channel, you have done the following:Enabled loyalty management by selecting the relevant checkbox in the B2C shop administration. In addition, you have maintained the following:

Transaction types for earning points, buying points, and redeeming pointsLoyalty programPoint types

Defined catalog area types in Customizing for Customer Relationship Management under Master Data Product Catalog Define Catalog Area Types You need to define the following catalog area types:

LOBP: Area for Buy Points CatalogLORC: Area for Reward Catalog

For more information, see SAP Note 1331970.

Features

Web Channel

In addition to standard Web Self Service functions, the customer can also perform the following loyalty activities:Create a membership in a loyalty programCustomers can create a new loyalty membership, which gives access to a new loyalty area under the Web Self-Service Area. Different scenarios exist,depending on the registration status of the customer. A new visitor can register and create a membership in one step, by entering his or her contact informationand selecting the loyalty options. On the other hand, existing users need to log on before they create a membership.

After logging on and accessing the Web Self Service area (My Account), the member can do the following:Register for loyalty campaignsThe member can view and register for loyalty campaigns for which he or she is eligible.View points transactions detailsThe member can view his or her account transaction history online, in addition to other membership information, such as membership ID and total availablebalance. By default, the transactions for the past calendar month are displayed, but the member can change the time period to display more or fewertransactions, for example, to view transactions between January 1st and July 31st 2008.Purchase products or services (shopping basket) from the online B2C catalog via the Web, and earn pointsBy doing so, the member earns points that are credited to the member's point account within the membership of the loyalty program.Buy extra pointsThe member can access a catalog area and buy points to increase his or her available balance faster.Redeem points for reward productsThe member can view an online reward catalog and select reward products from it. The member can use the Advanced Search to find reward products using arange of points or miles. The reward product goes into a shopping basket, and the amount of points redeemed for the reward product is deducted from themember's point account.

Interaction Center

In addition to standard IC functions, the customer can also perform the following loyalty activities that fall in the following IC areas available to a loyalty IC agent:Account IdentificationA member calls the IC and gives his or her membership ID, so that the IC agent can identify his or her account. Conversely, using the member contact details,the IC agent can also find the relevant membership belonging to the member.

Create membershipA customer calls the Interaction Center to create a membership. The IC agent confirms the account before creating the membership. The agent must enterthe loyalty program and membership type to be created. Other information that can be provided during creation include the purpose of use (private,business, charity), nominator ID (person who referred the customer), and promotional code (a registration bonus campaign that can be offered to the customerfor creating a membership). An integrity check runs to ensure that the data is complete. A plausibility check verifies that the loyalty program is active.

Membership OverviewPerform membership statement activitiesA member calls to obtain a copy of his or her membership statement. The IC agent accesses the member's account details and provides a hard copy (PDFformat) or an electronic version (e-mail) as required. For more information, see Membership Statement.Perform activities related to loyalty cardsA member reports a lost or stolen card. The IC agent deactivates the card and can change its status to lost or stolen. The IC agent can initiate the workflow for

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creating a replacement card. For more information, see Membership CardsSplit or merge membershipsA member requests that a membership is split or merged. The IC agent takes appropriate action. For more details, see Splitting and Merging ofMemberships.Assign member to group membershipA member calls to add a family member or friend to his or her group membership. The IC agent takes appropriate action. For more information, seeMembership.Donate pointsA member can request that points be donated to another membership, for example, for charity purposes. The IC agent takes appropriate action. For moreinformation, see Membership.Transfer pointsA member requests transfer of points to another membership, for example, when leaving a company. The IC agent takes appropriate action. For moreinformation, see Membership.

Membership ActivityView point account transactions summaryA member calls with questions about his or her points transactions. The IC agent can sort and filter the point transactions summary table.

Loyalty Programs and CampaignsObtain information about loyalty programsA member calls the IC to obtain information about the loyalty program or programs available. The IC agent checks the loyalty program or programs availableand answers the questions.Register for loyalty campaignA member calls the IC to register for a campaign. The IC agent checks the campaigns for which the member is eligible and registers him or her.

Sales OrderEarn points for purchasing productsA member calls the IC to purchase products. The IC agent creates a loyalty accrual order. A member activity is created and sent to loyalty, for evaluation bythe rule engine and proper point accrual. Points are earned according to the value maintained in the product master and/or as per the current loyaltycampaigns.Buy extra pointsA member calls the IC to buy points. The IC agent creates a buy points order. A member activity is created and sent to loyalty, for evaluation by the ruleengine and proper point accrual.Redeem points for reward productsA member calls the IC to redeem points for reward products. The IC agent creates a redemption order. The system checks that the member has sufficientpoints for the transaction, and a member activity is created and sent to loyalty, for evaluation by the rule engine and proper point deduction.

More InformationMemberMember ActivitiesPoint AccountMembership

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