oracle customer loyalty danielburian michalzboril

8/12/2019 Oracle Customer Loyalty DanielBurian MichalZboril

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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

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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
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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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9http://news.starbucks.com/archive

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
http://localhost/var/www/apps/conversion/tmp/scratch_8/GenericiPhoneLoyalty_v1.swf


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