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Roadmap to Working with Siebel Loyalty

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

Designing 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 might want to increase the frequency of a customer's interactions, the total dollars spent for each transaction, how often members use the Member portal rather than phoning the call center, or other behavior.

For example, a major airline might 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 frequent flyers, which would increase the frequency of their transactions.

Oracle Business Intelligence can help you analyze your customer base. A smaller research effort might 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.

Implementing a Loyalty Program

To implement a loyalty program, perform the following tasks:

• 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 Memberships and Other Loyalty Services. You must define memberships for various member types and define other loyalty services. For more information, see Working with Siebel Loyalty Program Members.
• 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.

Measuring a Loyalty Program's Results

After a program is in place, you measure its results to see whether 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, then 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? (ROI is defined as the increase in earnings divided by the cost of implementing the program.)

This measurement of the results can help you improve the design of the current program. Like the design phase, the measurement phase can use Oracle Business Intelligence.