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Enrolling Members in Multi-Level Loyalty Programs

A multi-level loyalty program is a program that rewards a member on the basis of other members' behavior. Examples of multi-level loyalty programs are:

• Insurance companies and agents. An insurance underwriter sets up a loyalty program for insurance agencies and their agents. Both the insurance agency and the agents receive a bonus when an agent sells the underwriter's products. Alternatively, just the insurance agency may receive a bonus when the agent sells the underwriter's products.
• Distributors and sub-distributors. A manufacturing company uses distributors to sell its products, and these distributors use sub-distributors to sell these products. For example, the manufacturer sends goods by the shipping container to the distributors, the distributors ship the goods by the pallet to the sub-distributors, and the sub-distributors ship individual products to retail stores. The manufacturer sets up a loyalty program to reward distributors for sales (to encourage them to sign up more sub-distributors) and also to reward the sub-distributors for their sales.
• Some airline frequent flyer programs. Some airlines have frequent flyer programs where a company earns points whenever its employees fly on company-related business. Members may have their own separate individual memberships that they use to earn points for themselves when they are on non-business related trips.

A multi-level loyalty program has a parent member and children members. In the examples:

• Insurance agencies are parent members and their agents are children members.
• Distributors are parent members and their sub-distributors are children members.
• Corporations are parent members and the corporation's employees are children members.

Setting Up a Multi-Level Loyalty Program

You set up a multi-level loyalty program by enrolling all program participants as members, then associating some members as child members with a specific parent member.

To enroll members in a multi-level loyalty program

1. Enroll parent members and children members separately, as described in Enrolling Members in Loyalty Programs.
2. Associate children members with their parent members.

To associate a child member with a parent member

1. Navigate to the Loyalty Members screen.
2. In the Members list, click the Member # hyperlink for the parent member.
3. Click the Child Members view tab.
4. In the Child Members list, add one or more new records.
5. In the Contact field, Account field, or Household field of each new record, select child members for this parent member.

   In the child member's record in Member > More Info view, the parent member is now shown in the Parent Member field.

Rolling Up Points from Child Members to a Parent Member

Siebel Loyalty allows parent members to accrue points to their balances based on child member activity.

The purpose of this feature is to allow a single parent member to act as the holding account for multiple child members. The feature takes the accrual transactions of child members and aggregates them to their parent member. For example, an account or a household can be a parent member in an airline or retail loyalty program. In this case, all child members of the account or household accrue their transactions directly to the parent.

This feature is useful for companies that wish to receive the points for any business transactions by their employees (because the company pays for the purchases that earn the points). In this case, the child members are the company's employees, and the parent member is the company itself.

Suppose an employee takes a business flight, paid for by the company. The flight earns 100 qualifying points and 100 non-qualifying points. The employee's points are set to roll up to the company. Siebel Loyalty creates the following transactions, in this sequence:

1. Accrual to child member. The child member (the employee) accrues 100 qualifying points plus 100 non-qualifying points. The transaction credits 200 points from the appropriate point block to the child member, who then has an available balance of 200 points. In addition, the child member earns 100 qualifying points at the tier level.
2. Redemption from child member. 100 qualifying points and 100 non-qualifying points are redeemed from the child member. However, the system does not nullify the qualifying points. The child member's available points balance = 0, and the qualifying points balance = 100. The transaction has no effect on the point block.
3. Accrual to parent member. This replicates the first transaction. 100 qualifying points and 100 non-qualifying points are accrued to the parent member (the company). The parent member's available points balance = 200, and the qualifying points balance = 100. The transaction has no effect on the point block.

You must add the child member and parent member before you can roll up points in this way.

NOTE:  The points are not double-counted, because only the child member or the parent member has them as available points at any given time. However, for purposes of placing members in a tier level, the same qualifying points count as credit for both the child member and the parent member.

To roll up points from child members to a parent member

1. Navigate to the Loyalty Members screen.
2. In the Members list, select the record for the parent member.
3. Click the parent member record's Member # hyperlink.
4. Click the Child Members view tab.
5. In the Child Members list, select a child member whose points you want to add to the parent member's balance.
6. Click the child member record's Member # hyperlink.
7. Click the More Info view tab, and complete the necessary fields. Some fields are described in the following table.

   Field	Comments
   Accrual To	Member to which the child's points will be credited. Select the parent member.
   Auto Accrual Start Date	Start date for the transactions that roll up points from the child member to the parent member. Accept the default of today's date or enter a future date. NOTE:  You cannot set this field to a date in the past.

   As of the Auto Accrual Start Date, the child member's points are added to the parent member's balance. In addition, the system will add subsequent point accruals by the child member to the parent member's balance.