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Loyalty Management

Enhancements Overview

SAP Enhancement Package 1 for SAP CRM 7.0

SAP CRM Marketing

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Agenda

1. Overview

2. Details

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Loyalty Management in SAP CRM 7.0

SAP CRM 7.0 introduced multi-channel loyalty program management capabilities

including program design, rule modeling and program execution, fully integrated in

CRM sales, marketing, interaction center and web channelWeb Channel

Rule Modeling

Membership Models

SAP CRM 7.0 introduced multi-channel loyalty program management capabilities including

program design, rule modeling and program execution, fully integrated in CRM sales,

marketing, interaction center and web channel. This enables organizations to design and

execute a loyalty program as part-and-parcel of a comprehensive CRM strategy.

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SAP Ehp1 for SAP CRM 7.0 enhances Loyalty

Management with

Extended multi-channel reach to partner channel, point-of-sale (POS), and web channelto increase the reach of your loyalty program

Enhanced membership handling with organization membership, anonymousmembership, and card handling to increase membership options

New end-to-end partner management capability to generate additional revenue throughpartner channel and increase program value to members

New benefit and voucher handling tools to offer the best incentives to the targetmembers

New mixed-payments capability to increase point value to program members, give

them more options and flexibility, and generate additional revenue

New extractors to analyze loyalty data

Enhanced graphical rule builder to enable flow-based rule design

SAP has invested to increase the reach and depth of the loyalty management capabilitiesin SAP Ehp1 for SAM CRM 7.0, including:

Extended multi-channel reach to partner channel, point-of-sale (POS) and web channel

Enhanced membership handling with organization membership, anonymous membershipand card handling

New end-to-end partner management capability

New benefit and voucher handling tools

New mixed-payments capability

New extractors

Enhanced graphical rule builder

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Agenda

1. Overview

2. Details

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Partner Management

End-to-end process for managing program partners in a loyalty program, including selling points

to partners, partner billing, and processing partner member activities.

Partner access to the partner channel management application to register new members and

manage partnership related activities.

Default Partnership for Program Partners & Sponsoring Partners

Partnership determination during member activity processing

Loyalty ProgramEnhancements

Partner access to loyalty application in partner channel management

Ability to create members and memberships

Ability to manage partnership activities

Partner Channel Application

Sales Order & Complaint integration to sell and return points with partners

CRM Billing Integration

Settlement report to automatically settle points in partnership

Sell & Return Points

New object to manage partner relationship to program

Partner Point Accounts to track partner point activities

Partnership Object

Feature Benefits

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Partner Management

The Partnership represents the agreement between the loyalty program and the partner. Itcan have start and end dates.

It can be considered that a Partnership is on the partner side what a Membership is on thecustomer/member side.

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Membership Handling Enhancements

Organization Membership

Enables Corporate Accounts to be members* in the loyalty program, thereby supporting

corporate memberships for employees of corporations, as well as B2B scenario for loyalty

programs targeted towards resellers, distributors, and affiliates.

Memberships can be created at all levels of the account hierarchy.

Configurable point account to pool points earned by membersCentralized point account

management

Negotiated initial tier levels for members of corporate accounts

Negotiated benefits for members of corporate accounts

Negotiated tier levels and

benefits

Feature Benefits

* Only Individual Accounts as members supported in SAP CRM 7.0

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With SAP CRM 7.0 EhP1 it is possible to create organization memberships.

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Organization Membership Agreement

With an Organization Membership Agreement you can define special agreements for yourcorporate account like starting initial with the silver tier level instead of the regular tier level.

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Anonymous Card Handling

Enables marketing managers to distribute cards in marketing materials such as magazines and

brochures, which can then be used by customers to become members on first use.

Intelligent membership creation ensures membership is created only if the card is used*

Membership creation on first member activity creationIntelligent Membership Creation

Card number generation through campaign execution

Point accumulation in anonymous mode

Card Generation

Feature Benefits

* Typically a small fraction of the printed cards are used and activated.

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Enhanced Card Management

Enhanced card management improves the ability of the brand owner to introduce different card

types in partnership with credit card companies and manage the lifecycle of the cards in CRM

Event-based card creation (new membership, tier level change, etc.)

Card status, validity and expiration management

Lost card replacement

Card Lifecycle Management

API to integrate with external card service providersCard Management API

Integrated with SAP CRM Service Contracts for fee management

CRM Billing Integration

Fee Management

Card Types such credit cards, membership cards

Tier dependent cards

Card Definition

Feature Benefits

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Outbound Correspondence

Mail form integration to trigger outbound correspondence to members on specific events related

to membership, cards, and status

Automatic correspondence by standard events.

Correspondence by customer specified events.

Event Based Outbound

Correspondence

Loyalty Attributes like tier levels, point balances etc.

BAdI for customers to enhance these attributes

Configurable mail templates for each event

Enhanced Mail Form attributes

Immediate or scheduled delivery options

Queuing mechanism and Priority handling

Mail form execution

Feature Benefits

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CRM Integration

Enhanced Backend Integration

Fixed Redemption Value for Reward Products

Mixed Payments enables members to redeem products using a combination of points andcurrency.

Market Research has shown that members are more likely to spend their points if they are

offered the option of spending a combination of (less) points and currency, rather thatspend (more) points alone for a particular purchase.

Mixed payments provide a valuable strategy in four ways (1) enables members to purchase

products for which they have not yet accrued enough points (2) drives members to makemore transactions/purchases using the same number of points, also in the process

increasing their spending in the program, and (3) burns points faster, and generatesadditional revenue for the company.

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CRM Integration


Flexible Payment Calculation for Reward Products

Mixed Payments enables members to redeem products using a combination of points andcurrency




products for which they have not yet accrued enough points (2) drives members to makemore transactions/purchases using the same number of points, also in the process


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CRM Integration


Complaint handling enables resolution of member grievances using the standard Complaints

process in CRM




products for which they have not yet accrued enough points (2) drives members to make

more transactions/purchases using the same number of points, also in the process


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CRM Integration

Enhanced Web Channel

TBD

TBDTBD

TBDTBD

Feature Benefits

TBD: Marcus, later after extended development of Ehp1

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Benefits Handling

Manage and assign benefits as part of the loyalty program, so as to offer unique incentives to

members

Automatic benefit determination for membership

Intelligent resolution of conflicting benefits

Single view to track availability and consumption of a members benefits

Benefit Tracking

Define benefits at global, tier, or corporate membership level

Limits on consumption by period or usage or both

Ability to purchase benefits with points or currency

Benefit Management

Feature Benefits

Benefits are bonuses which are often not related directly to monetary advantages like

special prices. They have more character as a gift or privilege from a customer/memberspoint of view and will be from the vendors/loyalty hosts also handle like this.

Examples:

Retail industries Loan tools for free (e.g. trailers to transport goods)

Try on @ home (take selection of cloths to try on @ home)

Extended services, like free half-yearly inspection for bicycle

Enhanced warranty for all bought goods

Airline industries Double luggage weight Free access to VIP lounge

Prior boarding/ check in

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Benefits Handling

Benefits

Define benefits for the loyalty program. And choose the classification criteria for the benefit.

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Benefits Handling

The valid benefits for the certain membership is shown in the assignment block Benefits

The basis of the benefits is the benefit object itself. It shall be defined on loyalty programlevel and is exclusively available within the program.

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Voucher Handling

Vouchers handling integrated with loyalty management and campaign management enables

brand owners to target the desired customer segment with the right incentive/discount to

influence and increase spending, thereby increasing their loyalty to the brand

Ability to track consumption by members

Acquire new members by combining a new membership.

Track voucher usage

Voucher tracking

Campaign-based generation of vouchers

Anonymous, personalized, tell-a-friend type of vouchers

Voucher management

Feature Benefits

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Voucher Handling

Vouchers can easily be created within campaigns:

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Point-of-Sale (POS) Integration

Enterprise service to integrate with POS systems

Enterprise Service for accessing common loyalty processesEnterprise Service

Integrated in SAP POS and SAP ePOS

Point calculation as POS (SAP POS) or in CRM (SAP ePOS)

Standard Integration

Feature Benefits

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EPOS

Scan MembershipID

Lookup Member

Create Member

Update Member

Display point

history

Display currentaccount balance

and tier status

Scan voucheruse voucheras

tender

SAP CRM

Point Account

Member Activity

SegmentCampaign

-------------------

VoucherGeneration

Distributionvalidation and usage

Returncode/campaign ID

Membership

Business

Partner(Member)

Point-of-Sale (POS) Integration

Deliver pointbalance/tier

Request point balance/tier

Request Member activity

Validate voucher

Request Member/ship data

Response/Confirm Member/ship data

Response Member activity

The slide gives an example how the POS integration works with Loyalty Management.

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Reward Rule Enhancements

Enhanced graphical rule designer to enable visual and flow-based rule design

Enhanced action for tier transition

New action for raising warnings during rule processing

New actions for supporting benefits handling

Enhanced Actions

Graphical flow-based rule design enables visual rule design

Reduce rule steps compared to table based rule design

Flow-based rule design

Feature Benefits

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Enter Reward Rule Details and then

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create your Reward Rule in the graphical flow-based rule designer

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Loyalty Analytics

Extractors for key loyalty objects to analyze loyalty data

Extractors for key loyalty data like Membership, Point Transactions,

Member Activities, and Partner Point Transactions

Loyalty Extractors

Feature Benefits

With SAP CRM 7.0 EhP1 it would be now possible to transfer loyalty data to the BusinessWarehouse system and create reports for analyzing your loyalty data.

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Copyright 2009 SAP AG

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