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Siebel Loyalty Administration Guide > Overview of Siebel Loyalty > Siebel Loyalty Life CycleThe life cycle of a loyalty solution typically has three phases—design, implementation, and measurement. Design of a Loyalty ProgramTo 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 spend per transaction, the total life cycle of the customer, 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 ProgramImplementing a loyalty program involves:
Measurement of a Loyalty Program's ResultsAfter 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:
This measurement of the results can help you design future programs. Like the design phase, the measurement phase can use Siebel Analytics. |
Siebel Loyalty Administration Guide |