Download - Driving Customer Loyalty

<Insert Picture Here>

Driving Customer Loyalty at Holland America Line

Olivia Dalesandro, Holland America Line

Emil Sarkissian, Loyalty Methods

Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.2

Contents

IntroductionWhy Loyalty?Challenges Before SiebelWhy Siebel?Lessons LearnedTechnology Best Practices

What MattersTypical Challenges

Q&A


Introduction

Holland America LinePremier Luxury Cruise Line15 Ships, 800-2100 Passengers CapacitySailing to 7 ContinentsSubsidiary of Carnival Corporation

Loyalty Methods Implements Siebel Loyalty, Marketing and

Analytics First to Implement Large-scale US-based Airline

(Alaska Airlines) Extensive Loyalty experience in Airline, Hospitality

and Retail Industries Loyalty, Marketing, Analytics Implementer at

Holland America Line


Why Loyalty?

Understand Customer Preferences Increase Yield Performance Increase Repeat Business Rates Improve Guest Experience Strengthen Brand Affinity & Create Brand

Advocates Improve Guest Data Quality


Marketing Direction

Drive Repeat Business via Recognition of Customer Loyalty Status

Attract New Spending via Loyalty Incentives and Targeted Product Promotions

Use Ad-hoc Promotions to Dynamically Influence Specific Product Sales


Program Details

Official Launch – October 2009 Points Awarded to Guests for:

Number of Days Cruised On-board Spending = Extra Days Bonus Days for Booking Suites

Points Drive Loyalty Tier Status One-to-Four Star Mariners

Tier Rewards Include On-board discounts (wine packages, brunches, etc.) Third and fourth guests discounts Exclusive offers to members Free subscriptions, gifts, etc.


Challenges Before Siebel

Mainframe UI not user friendly No real-time changes to data All updates were entered by a

third-party vendor manually No ability to change the program and

create ad-hoc promotions No remote use of old system Poor response time for administration or

troubleshooting Almost impossible to change functionality


Why Siebel?

Part of a All-Encompassing CRM Program Sales, Guest Relations, Marketing and Loyalty Unified Customer View

Consistent, Friendly, Flexible User Interface Extensible with HAL-specific Data Ad-hoc Promotions are Clicks Away Seamless Integration with all our Customer

Touch-point Systems Allows HAL More Control over Data Handles High Transaction Volume


Results to Date

Increased guest satisfaction as a result of more valuable benefits compared to old program.

Guests actively working towards achieving higher loyalty status.

Tangible benefits attract new guests and help retain past guests.

Marketing is now able to leverage loyalty information to better target guest mailings. Use Tier Status and Lifetime Points Use On-board Spending Transactions


Lessons Learned

Prepare and Organize Start by Analyzing Existing Processes Visualize in Detail How You will Deliver

on Your Promises Standardize Processes Understand Customer Impact Evaluate Risk at each Customer Touch Point

Operational Procedures Across Multiple Properties Identify Training Needs Including Trainers, Trainees, Timing,

Materials, Delivery Methods Reach Out to Partners – Internal/External

Identify, Engage and Secure Resource Commitment from Internal and External Partners

Involve Partners in Collaborative Planning Early and Often


Lessons Learned

Know What You Want and Why Define Scope Clearly There is Usually More Than One Way to Accomplish

the Same Result – Try to Stay with Out-Of-Box Functionality when Possible

Know Where You Stand Manage Scope Aggressively Track Project Progress Frequently

Test, Test, Test Budget and Identify Test Resources During Initial

Planning Involve Test Lead from the Start Try to Conduct Testing at a Common Physical Location


Technology Best Practices

Siebel Loyalty Projects are Different Highly Visible to End Customer

Delivered through Customer-facing Technology Consistent Delivery becomes a Critical Success Factor

High Number of Customer Touch-points Large Number of Interfaces to Disparate Internal/External Systems

Loyalty is a Core Enterprise IT System Owns Large Volume of Data Large Volume of Online and Batch Transaction Processing


High Visibility to End Customer

Simplicity and Clarity of Program Rules Use Focus Groups to Improve Clarity Provide Training to Respond to Common Questions

Seamless Reward Tracking and Delivery Experience Don’t Settle for Workarounds

Consistency across Touch-points Use SOA Architecture and Design Patterns Avoid Point-to-Point Interfaces

Reliability in Uptime and Performance Consider Redundancy and High Availability Emphasize Performance Testing Devise Fall-back Procedures


High Number of Customer Touch Points

Interfacing with Many Systems Start with Integration Point Inventory Clearly Understand Data Ownership Get Data Samples as Early as Possible

Proactive Co-ordination with Internal/External Partners

Involve them Early during Planning Plan Collaboratively and Obtain Commitment

Understand their Resource Availability Understand their Priorities

Maintain On-going Productive Relationship Don’t Develop Interface Agreements in a Vacuum Avoid “transactional behavior”


Loyalty is a Core IT System

High Availability and Redundancy Consider Hosting Options Work with your Integrator and

Expert Services Architecture and Configuration Review Production Readiness Review

Consistent Performance to SLAs Understand Expected Volumes and Size Hardware Correctly Budget and Plan for Extensive Performance Testing Involve a Performance DBA Early during Technical Design Develop Consistent Job Scheduling Framework

Enhanced Interface Error Handling Develop a Consistent Error Logging Framework Develop a Clear Monitoring Strategy


Top Three Challenges

Scope Control Issues Poor Configuration and Customization Integration Dependency Slips


Scope Control Issues

The Meaning of Scope Scope is work. Work to change the

product and/or work to change the business process.

■ Scope Creep Avoid “Kid in Candy Store” Syndrome Avoid “Now or Never” Syndrome Develop Good “Scope Litmus Tests” to Maintain Focus

■ Inconsistent Organization of Scope Use Cases can Help Organize and Label Scope Consistently Keep Scope Labeled Consistently throughout Project Lifecycle.


Poor Configuration and Customization

Lack of Product Experience Avoid “hammer-nail” Syndrome

If all you Have is a Hammer, EverythingLooks Like a Nail

Talk to Companies who Have Implemented Loyalty Seek and Verify References

No sales/marketing budget can buy a great reference. Use Oracle Expert Services Reviews Seek Continuous Validation from Oracle TAM If Custom Work Looks Like Overkill, Use Cost Benefit

Analysis Always Consider Changing the Business Process First


External Dependency Slips

Invalid Assumptions about Partners Understand Partner Priorities and Constraints Understand Partner Downstream Dependencies Maintain Good Relationship

Long “Dark Periods Develop Jointly and Iteratively Seek to Validate Intermediate

Results Lack of Partner Accountability

Quantify and Explain Slip Impact Use More Granular Milestones Focus on Results, not Finger

Pointing


Conclusion

Loyalty is Strategically Important Mission Critical Marketing Component

Siebel Loyalty Works Scalable and Flexible Platform Rich Feature Set to Centrally Manage Loyalty Programs

Pervasive Nature of Loyalty Includes Multiple Customer Touch-points Leads to Multiple Integrations inside and outside the Enterprise

Requires Slightly Different Implementation Approach Prepare Well Plan and Execute Collaboratively Manage Scope and Risk Aggressively

Q&AThank You …

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

Download - Driving Customer Loyalty

Top Related