Loyalty solution: enhancing lifetime customer loyalty

Sofia 10th November

Loukas Deligiannakis
CRM Sales Consulting, South East Europe Team Leader
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 Oracles
products remains at the sole discretion of Oracle.
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 $306 M

Wireless Carriers $305 M

Industries

Insurance $298 M

Airlines $294 M

Investment Firms $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
 Todays 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
Cross-Channel
Cross-Channel Loyalty programs
Universal customer visibility and tracking
Personalized customer interactions
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
2011 Oracle Corporation Proprietary and Confidential
Cloud Computing
Alternate deployment models (e.g.
Hosted , BPO and SaaS)
Shift from Capex to Opex
Ensure adherence to security and
regulatory requirements
Mobility
Personalized, real-time engagement
Location and context aware messaging
Great customer experiences: in-store,
@premise and on-board
Social Media
Viral marketing through social networks
Social Rewards for loyalty behavior and
recognition for brand advocacy
Connect to and positively influence the
community
 How Oracle Can Help
Deliver a Seamless and Superior Customer Experience

Self-Service Customer Service Contact Center

E-Commerce & RTD for Closed-loop Customer Virtual contact center

a personalized Service Solution solution
experience Field Service Unified, multichannel
E-Billing & E-Payments communication solution
E-Support for efficient Comprehensive view of
Self Service & Support the customer
 Oracle Customer Experience Optimization Solutions

Customer Loyalty Marketing Server Business Intelligence

Complete loyalty End-to-end marketing Robust business

management solution solution intelligence solution
Personalized, relevant Plan, Budget, Design, Real-time insight &
customer promotions Approve & Execute historic analytics
Comprehensive point Communications Interactive dashboards
promotion and across Multiple and customer trending
redemption Channel reports
 Siebel Loyalty Marketing Enterprise Suite
Delivers 360 Insight, End-to-End Processes, Higher Customer Value and ROI

Direct Call Web/ Field Branches POS/ Bills &

Partners Wireless Stmts
Mail Center eMail Stores ATM
Sales

Intelligent Interactions across Touchpoints

Customer and Marketing Campaign and Customer

Business Resource Interaction Loyalty
Intelligence Management Management Management

Enterprise Marketing Management and Technology Platform

Customer Data Management

Oracle SAP R/3 Siebel PSFT EDW Other

2011 Oracle Corporation Proprietary and Confidential

 Increase CLV by Intelligent Interactions
Right Message, Right Customer, Right Moment

Recommend to friend
Moments of Truth In A Lifetime of Value
Proactive and Opportunistic Customer Management
quality of experience

Decrease monthly investment/spend

Competitor locked-out
Try new product

Change in usage
Repeat Buyer
How best
to reward?
Churn risk

Complain
How best
to serve? Next best activity
Cross-sell opportunity
Moments of Truth
Events / transactions /
Respond to promotion 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 Customer and Partner

Apps Facing Apps

Loyalty Loyalty Advanced Loyalty Loyalty

Loyalty In-Store Loyalty Clienteling
Member Service Member Partner
Manager Engine
Service Rep Agent Console (Future) Portal Portal
(Future)

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

Web Commerce PMS/CRS

Point of Sale ERP Social (Future) (Future)
Airline DCS BRM (Future)
Loyalty PoS, *Loyalty Core *Loyalty Airline *Loyalty Telco *Social Loyalty - ATG Loyalty Hospitality
Kiosks Banking System DCS and Customer BRM Systems Networks Commerce Systems
Server Integration

2011 Oracle Corporation Proprietary and Confidential

 Siebel Loyalty: Key Value Proposition
Drives dynamic and differentiated customer-centric Loyalty programs

Comprehensive solution 360 Degree-

Actionable View
integrated with world-leading of the Customer

Siebel CRM suite Customer

Multi-Brand
behavior and
Program Support
program analysis
Highly flexible, configurable
and business-friendly Multi-Channel Rapid
Rewards and Promotions
solution Redemptions Deployment

Architected for Scalability & Sophisticated

Multi-Channel
performance Member Care
Segmentation for
Targeting

Multi-Channel
End-to-End automation of Triggered
Campaigns
best practice loyalty
Comprehensive, Multi-Channel Platform
processes to Drive Customer-Centric Loyalty
programs

Multi-Channel solution

2011 Oracle Corporation Proprietary and Confidential

 Case Study: Caisse DEpargne

Solution Multi-channel implementation

Live with Siebel Marketing, Integrated with 65 systems

Loyalty, Call Center & Business including
Intelligence - Direct marketing
Supporting over 3M loyalty - Web site
members and more than
2,000,000 daily transactions Customers can check their points
balance and see offers at over
Part of successful loyalty 6,000 ATMs
partner network called SMiles
(15 millions of members)
 Rewards within the Partner Ecosystem

Banking premiums

Loyalty Rewards applicable to

Banks Premiums
Program
Member Points the banks products &
Card services

cash withdrawal

Non Banking premiums

Loyalty
Program
Member Points Promotional gifts
Card provided by Smiles

payment card
Smiles Member

Partners Premiums
Multi brand premiums

Any Other Loyalty

Program Points Transportation
Program Partner
Member premiums and
Card promotional gifts
provided by the
programs partners
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-the-
spot
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 Sarah sees offers As Sarah adds the As Sarah checks out, Sarah instantly
on to Grande specially targeted handbag to her she sees another earns 2500 points
Collections loyalty to her. An offer on shopping cart, she message offering her and Free Shipping
app on his iPhone handbags attracts notices a matching to post the items she for Yr-2012 loyalty
reward for her
her attention leather belt purchased to her shopping
She is delighted to recommended for facebook page. The
see personalized She views all the buying at a special offer also includes
handbags available Sarah also earns
greeting and bundled price. social reward of 100 additional social
recognition for her on offer. She is points for Sarah
delighted to see loyalty rewards for
elite status As Sarah pauses to everytime a visitor sharing the items
handbag of her
favorite style on consider buying clicks on the link and she purchased on
She also notices a offer. leather belt, she sees 1000 additional facebook
message from a message offering points if he/she
Grande Collections She decides to buy her to seek live purchases it
thanking her for her the same and adds interaction with an
continued to her shopping agent Sarah decides to
patronage and cart. The offer post the items she
relationship allows her to use Sarah quickly chats purchased to
her points to pay with an agent, gets facebook
fully or partially for clarity on bundled
a handbag
price and decides to
add belt to her
shopping cart

ATG Siebel Oracle FMW 3rd Party System

 Cross-Channel Consumer Experience with
Integrated Siebel Loyalty, Marketing and ATG
Recognize Target Shop Refer Reward

Recognize Review targeted Shopping Cart Refer product virally Receive real-time
customer at login offers Pay in Points on Social loyalty reward
based on loyalty Browse product Networking Sites (points or
Live-Help (Click-to-
information catalog experiential)
Chat)
View updated
Online Pricing
loyalty asset
Promotions
balance and
recognition status

Profile / Preferences Cross-Channel In-Context Social loyalty Real-time loyalty

Loyalty status Segmentation personalized real- rewards rewards (points,
Cross-Channel time voucher,
Loyalty assets experiential
Offer, Response recommendations
(points, vouchers) rewards)
and Lead based on profile,
Behavioral insight management preferences, Tier assessment
Cross-Channel Wishlist, past
Campaign purchase bahavior
Management Loyalty points
redemption

ATG Siebel
 Siebel Loyalty: Global Business Impact

2nd largest 2nd largest Largest domestic Largest

Retailer Airline Airline Mobile Manufacturer

Largest 2nd largest 5th largest 8th largest

Coffeehouse company Telco Banking corporation 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 & LSP/ BPO and Travel and
Retail Telco Financial Services
Hospitality- Airline Coalition Loyalty 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 Smart cost cutting
Because you can configure your offering Because you know where to save without
and expand it to new customer micro-segments hurting your customers.

Higher Margins High protection of investment

Because people pay more for experiences Because Customer Centric strategies are much
than for products or services harder to copy than products.

Higher recommendation rate Cheaper Development

Because your customers become Because you can develop what customers
your advocates. really want and need

Higher customer loyalty Fewer Complaints

Because customers feel listened to and feel Because you fix problems before you
cared for. go live

More Revenue More Profit Lower Costs

Thank You!