Download - Loyalty Management For Nzsug
Nicole Wieberneit
Thomas Wieberneit
27.08.2009Loyalty Management
Loyalty?
Loyalty!
Thomas Wieberneit
2008 – CRM Practice Manager ANZ CIBER, ANZ
2008 – Executive Consultant & Project Manager CGI, Canada
2005 – VP CRM Development SAP, Germany & Canada
2000 – Quality Manager then VP CRM Quality Management SAP, Germany
1997 – Development Manager CRM Technology & Mobile Solutions SAP, Germany
1995 – CRM Developer Kiefer & Veittinger, Germany
Who are CIBER?
Over 8,500 employees NYSE: CBR - HQ in Denver 85 Offices in 18 countries 3 US-based Development Centers 3 Offshore Development Centers Growth and Profitability since 1974 ISO 9001 certified 98% Customer Satisfaction Rating
“CIBER is positioned as a solid alternative to the large ESPs; it is a smaller, more-nimble provider whose sweet spot is a more-flexible approach to client engagements.”
A US$1 billion Global IT services company that builds, integrates and supports applications
and infrastructures for business and government.
CIBER ANZ
Established in 2005 Subsidiary of CIBER, Inc. (NYSE: CBR) Offices in Auckland, Sydney and Melbourne 100+ CIBER full time employees (30+ in NZ) ANZ SAP Support Centre based in Sydney & Auckland
HAgenda
Loyalty Management in Retail
The SAP Loyalty Management Solution
Demo
Successful Loyalty Programs
Improve the existing customer relationship by offering relevant rewards that reinforce the brand values
Identify, maintain, and increase the yield from best customers through long-term, interactive, value-added relationships
Performance is judged with a combination of behavioural and attitudinal measures
COLLOQUY, 2006, BuildingBrands, 2009
3 distinctive models Coalition 2 main program types
Cashback Points based
Loyalty technology Smart Cards E-Coupons (e.g. Safeway)
Active program participation rates are modest: ~40% Signs of maturity and boredom Process models
Personalization Improved loyalty analytics WOW! factor and soft benefits
Loyalty Management in Retail – Where are we now?
Retail Market Environment: 3 Distinctive Models
Relentless focus on lowest category prices that leads to Low customer service Low In-store experience Unimportance of customer
relationships
Membership clubs with de facto retail loyalty program Membership fees Members only wholesale-
pricing
Focus on differentiated customer relationships via Recognition and rewards Identifying customers Tracking their behaviour Mining data for marketing
insight
EDLP Loyalty Model Hybrid Model
Focusing solely on the lowest price in your sector is a pathway to disaster
(If your are not the low-price leader ...... and there can be only one!)
Mem
ber R
eten
tion
& An
nual
Spe
nd
State of the Art Loyalty Relationship Chain(TM)
DialogueEngage-
ment
Increase Member
Value
Sustain-able
Retention
Redemption ROI
COLLOQUY, 2009
How to Increase Loyalty Program Participation
WOW!-Factor – Attractiveness of Value Proposition
CRM Loyalty Analytics
Cu
sto
me
r S
erv
ice
Brand Linkage
One Face to the Customer
WO
M
Ch
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Targ
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Building a Customer Strategy based on SegmentsSome market analysis demonstrates how crucial it is for a retail company to manage their loyalty program in an innovative and aggressive way
80% of shoppers use their loyalty cards regularly 20% of loyalty program members generate 80% of a
retailer's profit It costs 5-10 times more to acquire new customers than
keeping existing ones 5% - 20% of loyalty program costs can be saved
through better prospect targeting Increase of customer retention by 5% can increase
profits by 20% to 40%
Potential Business impact of Loyalty Management
Same store sales could rise two digits over trend after short time
Gross profit percentage could rise significantly Two digit Sales and profit growth could be achieved Significantly increased shopping basket size Increased store count in double digit percentage range
Given the profit contribution of loyalty card buyers , it is vital for retailers to continuously recruit new members into their loyalty program
Loyalty Customer Strategy
Elite Urban Singles & Couples
Small Town Executive Families
Young Middle-Class FamiliesM
on
etar
y V
alu
e
Frequency and Recency of purchase Low High
High
Low
CustomerSegments
Segment BSegment A Segment DSegment C
Empty NestersMobile
Singles & Couples
Mid-Level Urban Couples
Young Mobile Singles
Single-Parent Families Middle Income Young Singles
Older, Rural Couples OlderSingles & Couples
Older Families in Isolated Areas
How to Increase Loyalty Program Participation
WOW!-Factor – Attractiveness of Value Proposition
CRM Loyalty Analytics
Cu
sto
me
r S
erv
ice
Brand Linkage
One Face to the Customer
WO
M
Ch
am
pio
n
Re
lev
an
tP
rod
uc
ts
Targ
ete
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Off
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Pe
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Retail Requirements for the Customer Strategy
Customer Driven Experience
CustomerSegments
Kio
sk
Inte rn
et
IVR
Mes sa g
ing
Fax
Ph
on
e
Lett er
Co
un
ter
E-m
ai l
Sto
reMultiChannelInteraction
Customer Management
Customer Loyalty Management
Segment DSegment CSegment BSegment A
Memberregistration
Member activitysales transaction
Member activity service transaction
Member activity campaign driven
Member activity tier upgrade
How to Increase Loyalty Program Participation
WOW!-Factor – Attractiveness of Value Proposition
CRM Loyalty Analytics
Cu
sto
me
r S
erv
ice
Brand Linkage
One Face to the Customer
WO
M
Ch
am
pio
n
Re
lev
an
tP
rod
uc
ts
Targ
ete
d
Off
ers
Pe
rso
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Word Of Mouth Marketing
WOM
Participation
Dialogue Engagement
Increased Member Value
Profitable Long-Term Relationship
Identification
Value Exchange
WOM Acquisition
WOM Facilitated
Multiple Exchanges
Champions
Sustainable Retention
COLLOQUY talk: The New Champion Customers, January 2009
Mem
ber R
eten
tion
& An
nual
Spe
nd
WOM enhanced Loyalty Relationship Chain
DialogueEngage-
ment
Increase Member
Value
Sustain-able
Retention
Higher ROI
Co
st
Rev
enu
e
COLLOQUY, 2009
HAgenda
Loyalty Management in Retail
The SAP Loyalty Management Solution
Demo
Loyalty Management – A Complete Solution
Loyalty Management – Overview
Transactional Data Master Data
PointTypes
TierLevel
Rule
Membership
CardPointAccount
Member
MemberActivity
LoyaltyProgram
RuleGroup
LoyaltyCampaign
TierGroups
ProgramPartner
Independent Affiliates
3PL Service
stations Other B2C
business
Loyalty Processing Engine
Communication
CustomerSegments
Intern
et
IVR
Fax
Ph
on
e
Lett er
Co
un
ter
E-m
ai l
MultiChannelInteraction
Membership Handling
Back-O
ffi ce
Web Shop Interaction Center CRM UI Web-Services
Customers External Applications/POS system
Program Management
Pro
cessing
En
gin
e
MemberActivities
Points / BonusDetermination by
Rule Engine
Rew
ard R
ule M
anag
emen
t
PointAccruals
Point Account
PointRedemption
PointExpiration
LoyaltyManagementCRM Marketing
Functional Overview
Integrate / Analyze / Collaborate
ProgramManagement
MembershipHandling
Program Partners Management
Points Management
Tier based Point Expiration
Dynamic Attributes
Tier Management
Program Creation
Point Expiration Processing
Online Member Activity
Processing
Batch Member Activity
Processing
Simulation of Rule Processing
Scalable Engine Component
Tier Evaluation Processing
Point Account Management
Member Tier Management
Member Activities
Basic Membership Card
Handling
Membership Types and
Registration
Member Profile Maintenance
ProcessingEngine
Sales Order Integration
IC IntegrationLoyalty API
ConnectivityWeb Channel
Integration
Reward RulesManagement
Version Management
Template & Expert mode
maintenance
Partner Sponsorship
Robust Rule Modeling
Rule Scheduling
Campaign Integration
Key Take Aways
EDLP is not a viable loyalty strategy for most companies
Consumers expect being addressed with messages relevant to them
Well managed loyalty programs have lower cost at a higher return
SAP CRM can help you achieve this
HAgenda
Loyalty Management in Retail
The SAP Loyalty Management Solution
Demo
Retail Loyalty Dashboard Overview
Multi-Channel Analysis
Analysis by Tier and Region
Champaign Analysis by Product Category
Dashboard – Loyalty Campaign Details
Detail Analysis by Tier and Campaign
Campaign Analysis Overview
Loyalty Program Overview
Loyalty Program Hierarchy
Loyalty Program General Data
Several Component:1. Events – Loyalty Campaigns
2. Reward Rule Groups – e.g. for campaigns, sales orders, tiers3. Reward Rules – How many Points
Membership in Loyalty Program I
Membership Overview
Tier Changes
Membership in Loyalty Program IIMember Activities:
Tier Change, Accrual, Redemption, …
Multiple Members and Cards to a Membership
Possible
Point Balance – Several Point Types per
Program Possible
Loyalty Campaign
Loyalty Campaign – General Data
With or Without Enrollment
Enrollment by all Members or Target
Group Based
Reward Rule
Reward Rule Details
Easy Maintenance of Reward Rules via the
Formula Builder
Web Channel – My Account
Consumer – Account Area with several Options
View of all Loyalty Campaigns
Browse Catalogue and Earn Some Extra PointsBrowsing in the Product
Catalogue
Extra Points if Buying Long Chairs
Web Shop – My Loyalty - Transactions
Earn 3x Points by Buying the Chair:
• Standard Points (Qualifying)• 2 Loyalty Campaigns
Points are Added to the Balance
Web Shop – Redeem Points
Costs in Points Shown
Redemption Product Catalogue
Shopping Basket View
My Transactions after Redemption
All Member Activities are Happening in Real-Time
Call Centre Support Specialist Overview
Mr. Baker calls in
Confirmation of Account and Membership Details
CIC – Membership Overview
Membership General Data
Activities Visible: Sale and Redemption from Web Shop
Donation and Transferring of Points
Donate or Transfer Points
Selection of Destination Membership
Number of Points
Manual Up- or Downgrade
Possibility to Up- and Downgrade a Membership from the Membership Overview