Loyalty solution: enhancing lifetime customer loyalty

Sofia 10th November

Loukas Deligiannakis

CRM Sales Consulting, South East Europe Team Leader

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 Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement

US$ Millions

Improving the Customer Experience Drives Loyalty and

Boosts Revenue

*Annual Revenue impact from 10-percentage point swing in Customer Experience Index

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

$311 M

$305 M

$306 M

$298 M

$294 M

$260 M

$177 M

Wireless Carriers

Airlines

Banks

Insurance

Retailers

Health Plan

Hotels

$287 M Investment Firms

Ind

us

trie

s

$0.0 $100.0 $200.0 $300.0

Customer-Driven

Social Media

Cloud Computing

Mobility

Speed-to-Market

Cross-Channel

Today‟s Business Environment

© 2011 Oracle Corporation – Proprietary and Confidential

Customer-Driven

Social Media

Cloud Computing

Mobility

Speed-to-Market

Cross-Channel

Megatrends: Business Implications

• Loyalty program aligned to lifestyles

• Emphasis on recognition and experiential

rewards

• Loyalty program part of the broader

customer strategy

• Cross-Channel Loyalty programs

• Universal customer visibility and tracking

• Personalized customer interactions

• Faster deployment of loyalty system

• Program innovation at the speed of

business

• Adapt to the marketplace developments

and customers in real time

• Alternate deployment models (e.g.

Hosted , BPO and SaaS)

• Shift from Capex to Opex

• Ensure adherence to security and

regulatory requirements

• Personalized, real-time engagement

• Location and context aware messaging

• Great customer experiences: in-store,

@premise and on-board

• 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

Self-Service

• Virtual contact center solution

• Unified, multichannel communication solution

• Comprehensive view of the customer

Contact Center

• E-Commerce & RTD for a personalized experience

• E-Billing & E-Payments

• E-Support for efficient Self Service & Support

Customer Service

• Closed-loop Customer Service Solution

• Field Service

How Oracle Can Help Deliver a Seamless and Superior Customer Experience

Marketing Server

• Robust business intelligence solution

• Real-time insight & historic analytics

• Interactive dashboards and customer trending reports

Business Intelligence

• End-to-end marketing solution

• Plan, Budget, Design, Approve & Execute Communications…

• …across Multiple Channel

Oracle Customer Experience Optimization Solutions

Customer Loyalty

• Complete loyalty management solution

• Personalized, relevant customer promotions

• Comprehensive point promotion and redemption

Enterprise Marketing Management and Technology Platform

Campaign and Interaction

Management

Customer and Business

Intelligence

Marketing Resource

Management

Customer Loyalty

Management

Field

Sales

Web/ eMail

Partners Call

Center Direct Mail

Wireless POS/ ATM

Bills & Stmts

Branches

Stores

Intelligent Interactions across Touchpoints

Siebel Loyalty Marketing Enterprise Suite Delivers 360 Insight, End-to-End Processes, Higher Customer Value and ROI

Customer Data Management

Siebel Oracle SAP R/3 PSFT EDW Other

© 2011 Oracle Corporation – Proprietary and Confidential

How best to serve? Next best activity

time

qu

ality

of

ex

pe

rie

nc

e

Events / transactions / interactions

Moments of Truth

Insight-driven / behavioural triggers

Increase CLV by Intelligent Interactions

Right Message, Right Customer, Right Moment

How best to reward?

Cross-sell opportunity

Competitor locked-out

Churn risk

Change in usage Repeat Buyer

Complain

Respond to promotion

Try new product

Recommend to friend

Decrease monthly investment/spend

Moments of Truth In A Lifetime of Value Proactive and Opportunistic Customer Management

acquire serve learn maximize learn

adapt

Focus on Customer Loyalty

Loyalty Engine

Loyalty Manager

Loyalty Member

Service Rep

Loyalty Member Portal

Loyalty Partner Portal

Loyalty Service

Agent Console

Accrual Redemption Tiers Eligibility Service Pricing Loyalty Assets Expiration Loans

Partners Members Host Company

Employee Facing Apps

Customer and Partner Facing Apps

Batch and Real-Time Integration with Enterprise Integration Manager and SoA Enabled Web Services

Siebel Loyalty Complete, Integrated, Multi-Channel Loyalty Management Solution

Loyalty – PoS, Kiosks

Point of Sale

ERP

Airline DCS

*Loyalty – Airline DCS and Customer

Server

*Loyalty – Core Banking System

BRM

*Loyalty – Telco BRM Systems

Advanced In-Store Loyalty

Engine (Future)

Clienteling

(Future)

*Social

Networks

Social (Future)

Loyalty - ATG

Commerce

Integration

Web Commerce

(Future)

© 2011 Oracle Corporation – Proprietary and Confidential

Loyalty – Hospitality

Systems

PMS/CRS

(Future)

• Comprehensive solution

integrated with world-leading

Siebel CRM suite

• Highly flexible, configurable

and business-friendly

solution

• Architected for Scalability &

performance

• End-to-End automation of

best practice loyalty

processes

• Multi-Channel solution

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

360 Degree- Actionable View of the Customer

Multi-Brand Program Support

Rapid Promotions Deployment

Sophisticated Segmentation for

Targeting

Multi-Channel Triggered

Campaigns

Multi-Channel Member Care

Multi-Channel Rewards and Redemptions

Customer behavior and

program analysis

Comprehensive, Multi-Channel Platform to Drive Customer-Centric Loyalty

programs

© 2011 Oracle Corporation – Proprietary and Confidential

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)

Case Study: Caisse D‟Epargne

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

S‟miles Member

Banking premiums

“Non Banking” premiums

Rewards applicable to the bank‟s products &

services

Promotional gifts provided by S‟miles

Multi brand premiums

Transportation premiums and

promotional gifts provided by the

program‟s partners

Ban

k‟s

Pre

miu

ms

Partn

ers

‟ Pre

miu

ms

Any Other Program Partner

Loyalty Points

Program Member

Card

Loyalty Points

Program Member

Card

Program Member

Card

Loyalty Points

cash withdrawal

payment card

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

• 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

Siebel Loyalty

© 2011 Oracle Corporation – Proprietary and Confidential

ATG Siebel Oracle FMW 3rd Party System

• 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

Cross-Channel Consumer Experience with Integrated Siebel Loyalty, Marketing and ATG

Target Shop Refer Reward Recognize

Target Shop Refer Reward

ATG Siebel

Cross-Channel Consumer Experience with Integrated Siebel Loyalty, Marketing and ATG

Recognize

• Recognize customer at login based on loyalty information

• Shopping Cart

• Pay in Points

• Live-Help (Click-to-Chat)

• Online Pricing Promotions

• Review targeted offers

• Browse product catalog

• Refer product virally on Social Networking Sites

• Receive real-time loyalty reward (points or experiential)

• View updated loyalty asset balance and recognition status

• Cross-Channel Segmentation

• Cross-Channel Offer, Response and Lead management

• Cross-Channel Campaign Management

• Real-time loyalty rewards (points,

voucher, experiential

rewards)

• Tier assessment

• Profile / Preferences

• Loyalty status

• Loyalty assets (points, vouchers)

• Behavioral insight

• In-Context personalized real-time recommendations based on profile, preferences, Wishlist, past purchase bahavior

• Loyalty points redemption

• Social loyalty rewards

Siebel Loyalty: Global Business Impact

2nd largest Retailer

2nd largest Airline

Largest domestic Airline

Largest Mobile Manufacturer

Largest Coffeehouse company

8th largest Insurance company

2nd largest Telco

Run Siebel loyalty to drive loyalty of key stakeholders of their business – Customers, Partners and Employees

5th largest Banking corporation

© 2011 Oracle Corporation – Proprietary and Confidential

Siebel Loyalty: Example Customers

Travel and

Hospitality - Other

LSP/ BPO and

Coalition Loyalty Financial Services Retail

Travel & Hospitality- Airline

Telco

Tier 1

Tier 2

Tier 3

Hypermarket

Specialty

CPG, QSR, Fuel

Comms

Media

Entertainment

Integrated FS

Bank

Insurance

LSP

Coalition

BPO

Cruiselines

Casino & Resorts

Railroads

B2B, B2B2C, B2E

and Hierarchical

B2B Program B2B2C Program B2E Program 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 Profit More Revenue Lower Costs

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

Thank You!