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Siebel Loyalty Life Cycle

The life cycle of a loyalty solution typically has three phases—design, implementation, and measurement.

Design of a Loyalty Program

To design a loyalty program, you must do the research and analysis to determine who your best customers are and how you want to affect their behavior.

Depending on your business model, you may want to increase the frequency of a customer's interactions, the total dollars spent per transaction, how often members use the Member portal rather than phoning the call center, or other behavior.

For example, a major airline may find that 10 percent of its customer base generates more than half its total revenue. When the airline recognizes that frequent flyers are the major source of revenue, it can design a loyalty program to appeal to them, which would increase the frequency of their transactions.

Siebel Analytics can help you analyze your customer base. A smaller research effort may just select the target customers, design the program, hold focus groups to get feedback, and then roll out the program. A more advanced effort can include simulations of customer segments, reward thresholds, and financial analysis to maximize the program's impact on customer behavior across the customer base.

Implementation of a Loyalty Program

Implementing a loyalty program involves:

• Setting Up Siebel Loyalty. You must install and configure the product. For more information, see Getting Started with Siebel Loyalty.
• Setting Up Programs. You can design one or more loyalty programs, such as frequent flyer programs for airlines, bonus point program for supermarkets, or other programs appropriate to your industry. For more information, see Setting Up Siebel Loyalty Programs.
• Setting Up Promotions. Within the program, you can design special promotions, such as extra bonus points to encourage customers to buy a new product that you are trying to promote or to make purchases during the slack season. For more information, see Setting Up Siebel Loyalty Promotions.

Measurement of a Loyalty Program's Results

After a program is in place, you measure its results, to see if it is achieving the goals you set during the design phase.

For example, if the goal was to make your most frequent customers increase the number of transactions, you would measure:

• How much these transactions have increased.
• What effect the increase has had on revenue and earnings.
• What is the ROI of the program (the increase in earnings divided by the cost of implementing the program).

This measurement of the results can help you design future programs.

Like the design phase, the measurement phase can use Siebel Analytics.