Loyalty solution: enhancing lifetime customer loyalty Sofia 10 th November Loukas Deligiannakis CRM Sales Consulting, South East Europe Team Leader
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Industries Improving the Customer Experience Drives Loyalty and Boosts Revenue *Annual Revenue impact from 10-percentage point swing in Customer Experience Index Hotels $311 M Banks Wireless Carriers $306 M $305 M Insurance Airlines Investment Firms $298 M $294 M $287 M Retailers $260 M Health Plan $177 M $0.0 $100.0 $200.0 $300.0 US$ Millions Source: Forrester Research, Inc. Customer Experience Boosts Revenue, Bruce Temkin, June 22, 2009. Base: US online consumers. *The increase in revenue include that from Additional purchases, Churn reduction and Word-of-mouth advocacy
Today s Business Environment Customer-Driven Cloud Computing Cross-Channel Mobility Speed-to-Market Social Media 2011 Oracle Corporation Proprietary and Confidential
Megatrends: Business Implications Customer-Driven Loyalty program aligned to lifestyles Emphasis on recognition and experiential rewards Loyalty program part of the broader customer strategy Cloud Computing Alternate deployment models (e.g. Hosted, BPO and SaaS) Shift from Capex to Opex Ensure adherence to security and regulatory requirements Cross-Channel Cross-Channel Loyalty programs Universal customer visibility and tracking Personalized customer interactions Mobility Personalized, real-time engagement Location and context aware messaging Great customer experiences: in-store, @premise and on-board Speed-to-Market Faster deployment of loyalty system Program innovation at the speed of business Adapt to the marketplace developments and customers in real time Social Media Viral marketing through social networks Social Rewards for loyalty behavior and recognition for brand advocacy Connect to and positively influence the community 2011 Oracle Corporation Proprietary and Confidential
How Oracle Can Help Deliver a Seamless and Superior Customer Experience Self-Service Customer Service Contact Center E-Commerce & RTD for a personalized experience E-Billing & E-Payments E-Support for efficient Self Service & Support Closed-loop Customer Service Solution Field Service Virtual contact center solution Unified, multichannel communication solution Comprehensive view of the customer
Oracle Customer Experience Optimization Solutions Customer Loyalty Marketing Server Business Intelligence Complete loyalty management solution Personalized, relevant customer promotions Comprehensive point promotion and redemption End-to-end marketing solution Plan, Budget, Design, Approve & Execute Communications across Multiple Channel Robust business intelligence solution Real-time insight & historic analytics Interactive dashboards and customer trending reports
Siebel Loyalty Marketing Enterprise Suite Delivers 360 Insight, End-to-End Processes, Higher Customer Value and ROI Direct Mail Call Center Web/ email Field Sales Partners Branches Stores POS/ ATM Wireless Bills & Stmts Intelligent Interactions across Touchpoints Customer and Business Intelligence Marketing Resource Management Campaign and Interaction Management Customer Loyalty Management Enterprise Marketing Management and Technology Platform Customer Data Management Oracle SAP R/3 Siebel PSFT EDW Other 2011 Oracle Corporation Proprietary and Confidential
quality of experience Increase CLV by Intelligent Interactions Right Message, Right Customer, Right Moment Moments of Truth In A Lifetime of Value Proactive and Opportunistic Customer Management Decrease monthly investment/spend Try new product Recommend to friend Competitor locked-out Repeat Buyer Change in usage Churn risk How best to reward? Complain Cross-sell opportunity Respond to promotion How best to serve? Next best activity Moments of Truth Events / transactions / interactions Insight-driven / behavioural triggers acquire serve learn maximize learn time adapt
Focus on Customer Loyalty
Siebel Loyalty Complete, Integrated, Multi-Channel Loyalty Management Solution Host Company Members Partners Employee Facing Apps Customer and Partner Facing Apps Loyalty Manager Loyalty Member Service Rep Loyalty Service Agent Console Advanced In-Store Loyalty Engine (Future) Clienteling (Future) Loyalty Member Portal Loyalty Partner Portal Loyalty Engine Accrual Redemption Tiers Eligibility Service Pricing Loyalty Assets Expiration Loans Batch and Real-Time Integration with Enterprise Integration Manager and SoA Enabled Web Services Point of Sale Loyalty PoS, Kiosks ERP *Loyalty Core Banking System Airline DCS *Loyalty Airline DCS and Customer Server BRM *Loyalty Telco BRM Systems Social (Future) *Social Networks Web Commerce (Future) Loyalty - ATG Commerce Integration PMS/CRS (Future) Loyalty Hospitality Systems 2011 Oracle Corporation Proprietary and Confidential
Siebel Loyalty: Key Value Proposition Drives dynamic and differentiated customer-centric Loyalty programs Comprehensive solution integrated with world-leading Siebel CRM suite Highly flexible, configurable and business-friendly solution Customer behavior and program analysis Multi-Channel Rewards and Redemptions 360 Degree- Actionable View of the Customer Multi-Brand Program Support Rapid Promotions Deployment Architected for Scalability & performance Multi-Channel Member Care Sophisticated Segmentation for Targeting End-to-End automation of best practice loyalty processes Multi-Channel solution Multi-Channel Triggered Campaigns Comprehensive, Multi-Channel Platform to Drive Customer-Centric Loyalty programs 2011 Oracle Corporation Proprietary and Confidential
Case Study: Caisse D Epargne Solution Live with Siebel Marketing, Loyalty, Call Center & Business Intelligence Supporting over 3M loyalty members and more than 2,000,000 daily transactions Part of successful loyalty partner network called S Miles (15 millions of members) Multi-channel implementation Integrated with 65 systems including - Direct marketing - Web site Customers can check their points balance and see offers at over 6,000 ATMs
Rewards within the Partner Ecosystem Banking premiums S miles Member Program Member Card Program Member Card Program Member Card cash withdrawal payment card Any Other Program Partner Loyalty Points Loyalty Points Loyalty Points Rewards applicable to the bank s products & services Non Banking premiums Promotional gifts provided by S miles Multi brand premiums Transportation premiums and promotional gifts provided by the program s partners Bank s Premiums Partners Premiums
iphone Loyalty Application Extending Siebel Loyalty Marketing Solution to Drive Personalized Online Mobile Experience. Benefits Instantly recognizes customer and their value Delivers targeted and personalized offers on-thespot Enables tracking, earning and spending of points and receiving relevant information in real-time Build stronger brand affinity through online personalized engagement Deliver rich cross-channel experiences Make it easy to do business for customers support them in their preferred channel
Oracle Investment in CRM 3B$ Total CRM development investment 2500 New Siebel Features 320 New CRM On Demand Features 35 New Products 9 Additional Industry-specific Solutions for CRM 6 CRM On Demand Releases since acquisition 3 Siebel CRM Releases since acquisition Plus several major acquisitions: Haley for Policy Automation Market2Lead for Marketing On Demand ATG for Customer Experience 16
Siebel Loyalty Drive Dynamic, Differentiated Cross-Channel Loyalty Programs Maximize Conversion and Basket Size of Online Commerce Transactions Leverage Next-Gen Online Award Redemption Capabilities and Membership Experiences Enhance Brand Affinity and Engagement with Social Rewards and Interactions Enable Engaging Online Customer Experiences and Customer- Centric Promotions Increase Value Of Customer Interactions with Live Help and Recommendation Services 2011 Oracle Corporation Proprietary and Confidential
Cross-Channel Consumer Experience with Integrated Siebel Loyalty, Marketing and ATG Recognize Target Shop Refer Reward Sarah Jones logs on to Grande Collections loyalty app on his iphone She is delighted to see personalized greeting and recognition for her elite status She also notices a message from Grande Collections thanking her for her continued patronage and relationship Sarah sees offers specially targeted to her. An offer on handbags attracts her attention She views all the handbags available on offer. She is delighted to see handbag of her favorite style on offer. She decides to buy the same and adds to her shopping cart. The offer allows her to use her points to pay fully or partially for a handbag As Sarah adds the handbag to her shopping cart, she notices a matching leather belt recommended for buying at a special bundled price. As Sarah pauses to consider buying leather belt, she sees a message offering her to seek live interaction with an agent Sarah quickly chats with an agent, gets clarity on bundled price and decides to add belt to her shopping cart As Sarah checks out, she sees another message offering her to post the items she purchased to her facebook page. The offer also includes social reward of 100 points for Sarah everytime a visitor clicks on the link and 1000 additional points if he/she purchases it Sarah decides to post the items she purchased to facebook Sarah instantly earns 2500 points and Free Shipping for Yr-2012 loyalty reward for her shopping Sarah also earns additional social loyalty rewards for sharing the items she purchased on facebook ATG Siebel Oracle FMW 3 rd Party System
Cross-Channel Consumer Experience with Integrated Siebel Loyalty, Marketing and ATG Recognize Target Shop Refer Reward Recognize customer at login based on loyalty information Review targeted offers Browse product catalog Shopping Cart Pay in Points Live-Help (Click-to- Chat) Online Pricing Promotions Refer product virally on Social Networking Sites Receive real-time loyalty reward (points or experiential) View updated loyalty asset balance and recognition status Profile / Preferences Loyalty status Loyalty assets (points, vouchers) Behavioral insight Cross-Channel Segmentation Cross-Channel Offer, Response and Lead management Cross-Channel Campaign Management In-Context personalized realtime recommendations based on profile, preferences, Wishlist, past purchase bahavior Loyalty points redemption Social loyalty rewards Real-time loyalty rewards (points, voucher, experiential rewards) Tier assessment ATG Siebel
Siebel Loyalty: Global Business Impact 2 nd largest Retailer 2 nd largest Airline Largest domestic Airline Largest Mobile Manufacturer Largest Coffeehouse company 2 nd largest Telco 5 th largest Banking corporation 8 th largest Insurance company Run Siebel loyalty to drive loyalty of key stakeholders of their business Customers, Partners and Employees 2011 Oracle Corporation Proprietary and Confidential
Siebel Loyalty: Example Customers Travel & Hospitality- Airline Retail Telco Financial Services LSP/ BPO and Coalition Loyalty Travel and Hospitality - Other Tier 1 Hypermarket Comms Integrated FS LSP Cruiselines Tier 2 Specialty Media Bank Coalition Casino & Resorts Tier 3 CPG, QSR, Fuel Entertainment Insurance BPO Railroads B2B Program B2B2C Program B2E Program Hierarchical B2B, B2B2C, B2E and Hierarchical 2011 Oracle Corporation Proprietary and Confidential
8 Benefits from Engaging using Oracle CRM 1 Reason to Increase Customer Loyalty: PROFITABILITY Top Line Bottom Line New segments, new offering Because you can configure your offering and expand it to new customer micro-segments Higher Margins Because people pay more for experiences than for products or services Higher recommendation rate Because your customers become your advocates. Higher customer loyalty Because customers feel listened to and feel cared for. More Revenue More Profit Smart cost cutting Because you know where to save without hurting your customers. High protection of investment Because Customer Centric strategies are much harder to copy than products. Cheaper Development Because you can develop what customers really want and need Fewer Complaints Because you fix problems before you go live Lower Costs
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