Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.
Siebel Loyalty Solution <Insert Picture Here> Romania, Feb 2011 Siebel Loyalty Solution Michal Zbořil CRM Principal Sales Consultant
Why Should We Bother? Acquiring a new customer is 2-5 times more expensive than to keep an existing one. Source: Rob Yanker, Partner, McKinsey & Company
Why Should We Bother? Winning back a lost customer can cost 50-100 times as much as keeping a current one satisfied. Source: Rob Yanker, Partner, McKinsey & Company
Why Should We Bother? Attracting & Retaining customers top on the agenda for CEOs Reward Programs combined with Customer Service & CRM initiatives is the key to growing customer relationships
Challenges in Financial Services Commodity Products Relatively Low Switching Costs Not Fully Utilized Customer Information Service Potentially a Differentiating Factor
What is the Situation? 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 While consumers agree that price is important, they d choose a slightly higher rate for added service Who Are Typical Companies Running Loyalty Programs? Airlines Hotel Chains Financial Services Telecommunication & Media Retailers Product Differentiation StrategyOne Survey Service Differentiation BRAND EQUITY Time Forrester
Members in Millions Loyalty Program Membership by Industry Financial Services - driven by credit/debit card business. Not every Loyalty Program delivers the intended results Industries Financial Services Industry has the second largest membership base
Common Issues with Loyalty Systems and their impact on Customer/Member base High maintenance cost, inflexible legacy systems Limited functionality, poorly integrated point solutions High ongoing cost outsourced systems High maintenance costs Minimal flexibility Limited functionality All factors together result in Poor cross-channel and cross product integration Minimal analytical capabilities Minimal or No Value for your Customers/Loyalty Members Manual partner management Expensive ongoing costs and change fees Difficult to integrate with on-site systems for a complete solution
Oracle Siebel CRM Sales Loyalty Marketing Service
Oracle s Siebel Marketing Concept Intelligent Interactions across Touch points Customer and Business Intelligence Marketing Resource Management Campaign and Interaction Management Customer Loyalty Management Enterprise Marketing Management and Analytics Platform Customer Data Management Customer Profile Customer Fin. Accnt s Complaints & Requests Everything about customers Interests & Plans Info from agencies
Oracle s Siebel Loyalty Processes Intelligent Interactions across Touch points Customer and Business Enrollment Intelligence Process Customer Loyalty Management Marketing Campaign and Resource Accrual Redemption Interaction Management Process Management Process Customer Member Loyalty Services Management Enterprise Marketing Management and Analytics Platform Customer Data Management Customer Profile Customer Fin. Accnt s Complaints & Requests Everything about customers Interests & Plans Info from agencies
Oracle s Siebel Loyalty Processes Intelligent Interactions across Touch points Customer Loyalty Management Enrollment Process Accrual Process Redemption Process Member Services Member Activity Accrual Partner Debit/Billing Loyalty Administrator/ Customer/ Partner Start Receive Member transaction information via multiple channels Member Redemption Process Enterprise Marketing Management Loyalty and Analytics Capture Platform Select Price Enrollment Process Customer Data Management Respond back to Partner with transaction processing results End Agent/ 3 rd Party System Transaction Processing Start Calculate Redemption Price Redemption Process Redemption Request Option Create Quote Credit Check Create Order Process Payment Customer Profile Loyalty Engine Validate Transactions Determine eligibility and accrual reward Credit accrual reward to members Debit Partner Debit Member Point Balance Issue Voucher Fulfill Redemption Start Siebel Solution Siebel Loyalty Siebel Marketing Customer Fin. Accnt s Siebel Analytics Complaints & Requests Siebel Call Center Everything Partner about customers Siebel Solution Siebel Loyalty Interests & Plans Siebel Order Management Redemption Info from Availment agencies
Example Accrual Processing Member Activity Accrual Partner Debit/Billing Loyalty Administrator/ Customer/ Partner Start Receive Member transaction information via multiple channels Respond back to Partner with transaction processing results End Loyalty Engine Validate Transactions Determine eligibility and accrual reward Credit accrual reward to members Debit Partner Siebel Solution Siebel Loyalty Siebel Marketing Siebel Analytics Siebel Call Center
Example Redemption Processing Member Redemption Process Loyalty Agent/ 3 rd Party System Start Capture Redemption Request Select Price Option Calculate Redemption Price Create Quote Credit Check Create Order Process Payment Transaction Processing Debit Member Point Balance Issue Voucher Fulfill Redemption Start Partner Redemption Availment Siebel Loyalty Siebel Order Management
Customer Loyalty Management Increase the value and duration of your most important relationships Next-generation solution for creating innovative, customercentric 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 views End-to-end Solution Supports Entire Loyalty Program Lifecycle
Components of Siebel Loyalty Solution Loyalty Users Groups Loyalty Manager Setup programs Setup Program Currencies Define Tier classes Setup Business Rules & Processes Setup Partners and program offerings Define accrual and redemption rules Setup and Rollout targeted promotions Define Expirations & Eligibilities Service a member s request Loyalty Member/ Partner Portal 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 Service Center Full service contact center for loyalty program members Enroll Members and manage membership Manage service issues Redeem points for products and services Integrated Order Capture Enterprise Marketing Develop personalized marketing communications and offers Run campaigns & follow-up on execution Build sophisticated segments of loyalty members Analyze effectiveness of loyalty marketing program Loyalty Engine Rules Rewards Tiers Member Profiles Eligibility Promotions Transactions Point Expiration Enterprise Analytics and Data Integration Platform RES/DCS Point of Sale Billing Legacy Loyalty on PoS
Components of Siebel Loyalty Solution Loyalty Members Loyalty Program Loyalty Partners Loyalty Rules Framework Vouchers Point Types Tier Classes Accrual Template Promotions Promotion Metadata Member Services Member Admin Partner Product Offering Tiers Tier Rewards Accrual Promotions Redemption Promotions Tier Promotions Member Promotions Result Flexibility in Loyalty Program Design
LP Management Can Be Complex Member Loyalty Program Loyalty Rules Engine To run a dynamic and differentiated Loyalty program, organizations must manage: Targeted member acquisition Partner 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
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. 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. Tiers & Tier Rewards Program Members Point Types Partners Program Promotions
Flexible Tier Management 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., one based 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
Powerful Loyalty Promotions Influence Behavior of Your Customers 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 Loyalty Promotions Examples: Simple Promotion Simple Frequency Promotion Complex Frequency Promotion Joint Promotion Activity-based Promotions
Powerful Loyalty Promotions Influence Behavior of Your Customers 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
Powerful Loyalty Promotions Influence Behavior of Your Customers You can specify exact Promotion Criteria that must be fulfilled in order to accrue points. Siebel Loyalty enables complete Promotion set up by business specialists (not IT). Subsequently, you can define how much points and of which type will be accrued
Wizard Like Style of LP Set Up Loyalty Manager 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
Comprehensive Member Tracking Siebel Loyalty provides a broad member profile that gives you a solid understanding of members characteristics and value. 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
Comprehensive Member Tracking Siebel Loyalty provides a broad member profile that gives you a solid understanding of members characteristics and value. Front Office employees have complete overview of member profile, including Point balances. Siebel Loyalty provides complete history or member transactions relevant to Loyalty program - accrual, redemption
Comprehensive Member Tracking Siebel Loyalty provides a broad member profile that gives you a solid understanding of members characteristics and value. Customer facing employees can review all the marketing & loyalty Campaign targeted to loyalty member.
Comprehensive Member Tracking Siebel Loyalty provides a broad member profile that gives you a solid understanding of members characteristics and value. With Siebel Loyalty, you can monitor fulfillment of member s Redemption orders
Complete Transactions History Transactions track a member s accruals and redemptions with the host company and partners. 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 Siebel Loyalty Internal System Partner 1 System Loyalty Transactions Partner 2 System
Complete Transactions History Transactions track a member s accruals and redemptions with the host company and partners. Siebel Loyalty provides you with clear visibility of how the points were calculated. This is especially important during complaints handling and dispute processing
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. 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 Partner Portal Working with partners is simplified with a real-time integrated Loyalty Partner 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
Complete Loyalty CRM Package 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 preapproved 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
Loyalty Analytic - Complete Insight ANALYSIS & METRICS Loyalty Program & Promotions Loyalty Program Promotion Response Rate Effectiveness Top Promotions Program Points Summary Promotion Success by Customer Segment Membership Analysis Membership Growth Demographic Analysis Member Activities by Tier Loyalty Transactions Transaction Summary by Tier Products & Redemptions Partnership Analysis Partnership Effectiveness Liability Analysis Loyalty Financials Loyalty Balance Sheet Revenue Analysis Cost Analysis Tier Movement Analysis Member Value, RFM Analysis Points Earning and Burning Rate Analysis Accrual and Redemption Analysis Liability Analysis Partner Referrals and Revenue Partner Transactions Loyalty Program Revenue BENEFITS 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. Copyright 2009, Oracle and/or its affiliates. All rights reserved.
Loyalty Analytic - Role Based Dashboards Business Objectives/ Issues Loyalty Program Overview Loyalty Points Analyses Drive Membership Growth What is the redemption trend over the past 12 months? Loyalty Member Tiers Analyses Gain Insights What are the top redemption products? What segments have the highest redemption rate? What promotions exist to support these segments? Take Action Drill to promotions to renew or add
Loyalty Analytic Actionable Business Objectives/ Issues Drive Membership Growth What is the redemption trend over the last 12 Months? What is the accruals Transaction trend over The past 12 months? Gain Insights Take Action Which are the top redemption products? Which segments have the highest redemption rate? What promotions exist to support these segments? Drill to promotion to renew or add What corrective actions should be taken? What promotions are under performing? Business Function Customer Loyalty Role Loyalty Program Manager Objectives Meet marketing goals & budget Retain the loyal customers Copyright 2009, Oracle and/or its affiliates. All rights reserved.
Loyalty Analytic Actionable Business Objectives/ Issues Drive Membership Growth What is the redemption trend over the past 12 months? Gain Insights What are the top redemption products? What segments have the highest redemption rate? What promotions exist to support these segments? Take Action Drill to promotions to renew or add Copyright 2009, Oracle and/or its affiliates. All rights reserved. 41
Cross-Industry Customer Success Customers across 9 industries have chosen Siebel Loyalty to enhance their customer relationships
Loyalty Case Study: Caisse D Epargne Organization & Issues Third largest bank in France Over 26 million customers and 4,700 branches Operates across complete range of commercial and investment banking offerings Retail banking is the largest segment In a competitive environment, looking to build consumer brand loyalty to influence existing customers and attract new customers Objectives 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 customer behavior Drive customers to lowest cost channel ( ATMs) by awarding extra points for ATM usage Increase loyalty of high value customer segments Run targeted promotions to maintain leadership in profitable segments Leverage Partner Loyalty program to ensure LP profitability Solution 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 Epargne ATMs. Customers can check their points balance at over 6,000 ATMs
Loyalty Case Study: Ping An 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: Deutsche Bank 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 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
Loyalty Programs Help Financial Institutions By 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