crm- loyalty membership management

8/9/2019 CRM- Loyalty Membership Management

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SAP CRM 7.0Detailed View

SAP CRM 7.0 – Marketing

Loyalty Membership Management


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1. Loyalty Management – Brief Introduction

2. Membership2.1. Members

2.2. Membership - Details

2.3. Tiers

2.4. Card Handling

2.5. Member Activities

2.6. Point Accounts and –Sets

2.7. Dynamic Attributes

3. Membership Types3.1. Standard Membership

3.2. Shared Account Membership

3.3. Group Membership

3.4. Split and Merge Memberships

Agenda


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Loyalty Management - Overview

Functional Building Blocks

Integrate / Analyze / Collaborate

Program

Management

Reward Rules

ManagementMembership

Handling

Template-Based

Maintenance

Ongoing and

Scheduled Rules

Standard Actions

Rule Version

Management

Rule Modeling –

Simple & Complex

Campaign Eligibility

and Enrollment

Program Setup

Points

Management

Tier-Based Point

Expiration

Dynamic Attributes

Tier Management

Program Partners

Point Expiration

Processing

Online Member

Activity Processing

Batch Member

Activity Processing

Simulation of Rule

Processing

Scalable Engine

Component

Tier Evaluation

Processing

Point Account

Management

Member Tier

Management

Member Activities

Basic Membership

Card Handling

Membership Types

and Registration

Member Profile

Maintainence

Processing

Engine

Sales Order

IntegrationIC Integration

Loyalty API

Connectivity

Web Channel

Integration

It has already been mentioned that loyalty management is based on the four solid pillars

of:

Program Management

Reward Rule Management

Processing Engine

Membership Handling.

Each area directly addresses individual, loyalty-specific business needs and comes

with reach functionality:

READ SLIDE ….

We will now go deeper into these areas to provide you with an overview of the main

capabilities, features, and functions of SAP CRM Loyalty Management.


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Loyalty Management – Overview

A complete solution ...

Loyalty Program Management enables set-up and maintenance of loyalty programs. Program

maintenance includes information about program-related loyalty status levels, set-up and

maintenance of point accounts, as well as program-specific attributes based on flights, nights

of stay, dollars spent, frequency of purchases, and so on.

Loyalty Reward Rule Management includes set-up and maintenance of loyalty rules and

conditions, campaigns for enrollment and registration – finally being processed by the loyalty

engine. All points earned and redeemed by members are recorded within the member‘s point

account.

Loyalty Membership represents the participation of an individual person in a specific loyalty

program. Membership is opened by a registration to the loyalty program, either paper-based,

via web-self service, or call center. It also includes member activities such as flight, hotel stays,

or sales activities - finally being earned or redeemed as points.

The Loyalty Management Processing Engine is a highly scalable component to process

member activities, tier transition evaluation, and point expiration. It is an integrated part of SAP

CRM and the “heart” of the CRM-based Loyalty Management solution.

Loyalty Management additional features:

Collaboration

Integration

Analytics

Loyalty Program Management enables set-up and maintenance of loyalty programs.

Program maintenance includes information about program-related loyalty status levels,

tier groups and levels, set-up and maintenance of point accounts, as well as program-

specific point accrual and redemption based on flights, nights of stay, and so on.

Loyalty Reward Rule Management includes set-up and maintenance of loyalty rules and

conditions – finally being processed by the loyalty engine. All points earned and

redeemed by members are recorded within the member‘s point account.

Loyalty Membership represents the participation of an individual person in a loyalty

program. Membership is opened by a registration to the loyalty program, either paper-based, via web-self service, or call center. It also includes member activities such as

flight or sales activities - finally being earned or redeemed as points.

The Loyalty Management Processing Engine a highly scalable engine to process

member activities and tier transition evaluation. It is an integrated part of SAP CRM and

the “heart” of the CRM-based Loyalty Management solution.

SAP CRM loyalty management also provides cross-process collaboration, is seamlessly

integrated, and provides reach marketing, analytics, and segmentation functionalities.


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Loyalty Management - Overview

Communication

Customer

Segments

I n t e

r n e

t

I V R

F a

x

P h

o n

e

L e t t e

r

C o u

n t e

r

E - m

a i l

Multi

Channel

Interaction

Membership Handling

B a c

k -

O f f i c

e

Web shop Interaction Center CRM UI Web-Services

CustomersExternal

Applications

Program Management

P r o c e s si n gE n g

i n e

Member

Activities

Points / Bonus

Determination by

Rule Engine

R ew ar d R ul eM an a g em en t

Point

Accruals

Point Account

Point

Redemption

Point

Expiration

Loyalty

Management

CRM Marketing

Loyalty Management is embedded in SAP CRM.

It uses multiple channels to interact with the customer -

Mainly the CRM Web shop, the Interaction Center, as well as the CRM UI.

Its objects are web-service-enabled to allow external applications to communicate with

SAP CRM loyalty management.

It has already been mentioned that loyalty management is a central component,

seamlessly integrated in CRM Marketing.

Loyalty Management from a communication perspective is mainly about processing

activities, member activities such as flights, trips, ticket purchases, point redemption or

any other accrual activity; either sent by an external system, entered manually, or

derived from SAP CRM sales processes. These activities are processed against

system-specific rules and finally updates a passenger’s tier level, point account, or

execute any other customer-specific functionality according to the settings and

definitions that have been made for the loyalty program.


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2.3. Tiers

2.4. Card Handling








Agenda


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Members:

Represented by Standard Individual Accounts

Members – standard accounts and contacts

Member is represented by a standard individual account

Fully integrated into the core CRM system and applications

Use of all core functionalities around accounts and contacts

possible, like

Marketing Attributes

Lead and Opportunity Management

Sales Order Processing

Segmentation and Campaign Execution

Specific search performance optimization implemented for mass

data handling


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Membership:

Between Loyalty Program and Member

Features

Membership represents the participation of an individualaccount (natural person) in a loyalty program

Members can be assigned to various

loyalty programs in the same time

A unique membership object

exists (customizable) for each

participation in a program

Memberships across loyalty programs are

independent from each other

Benefits Run multiple, independent loyalty programs for the same member (individual account) at the

same time

Get consolidated information about the memberships on member level


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Membership:

Component Overview

General

Data

Dynamic Attributes

Point Accounts

TiersCards

Member Activities

Membership


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General

Data

Membership Object

Information Summary (I)

Reference to Loyalty Program

Reference to Member Life cycle (Status, Start- and End Date)

Classification

Short summary on one view

Current Active Tiers

Date of the last activity

Reference to Point Account Set

Reference to nominator

Tiers Current and previous tiers assigned to membership

Upgrade and downgrade tiers manually


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Membership Object

Information Summary (II)

Point AccountsPoint accounts assigned to the membership

Multiple point accounts, combined in one point account set Shows the point balance and date of last transaction

Member

Activities Overview of the events during the membership, such as:

Earning or redemption of points

Tier changes

DynamicAttributes Program-defined attributes To be updated or considered during member activity processing

To store loyalty program individual flags and counters

(Example: No. of international flights)


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Membership Object

Information Summary (III)

Membership

CardsCurrent and previous cards assigned to the membership

Create and maintain cards and card attributes Set cards to inactive (for example, stolen, lost)

Assigned

MembersMaintain members in group memberships(own membership type, described in following slides)

Related

MembershipsMaintain related memberships

(own membership type, described in following slides)


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Membership Object

Information Summary (IV)

Notes and

Attachments Notes and Attachments

Add individual notes on membership level Assign additional documents, standard CRM attachment handling

Change History /

Administration

Data

Who changed what and when in the membership object?


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Membership

Channel Overview

Standard Web UI

Integrated in the new role „Loyalty Professional“

Interaction Center

Integrated into the IC agent work environment (through Loy_IC_Agent role)

Search and create memberships

Access membership data and all functionalities available in the Web UI

application

Perform other loyalty activities

Web Channel*

Create Membership as part of the self-registration process

View membership data and point transactions summary Perform other loyalty activities

Response Recording (Web UI)

Enables the creation of accounts and membership in one go – fast entry

Supports the standard response recording features in combination with membership creation

* Loyalty Integration is only available for SAP E-Commerce with SAP CRM. In SAP E-Commerce with SAP ERP Loyalty Integration is not supported.


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Membership

Screenshot


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Membership Creation:

Fast Entry via Response Recording Application

Create members and membershipsin one go

Membership creation integrated intoresponse recording enables you to:

Create or search a member and

Create a membership

in the same application

No navigation to standard accountapplication needed

Fully integrated into the standardresponse recording process

Also includes personalized responsecode handling

Especially for manual mass creation processes


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2.3. Tiers

2.4. Card Handling








Agenda


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Tier Management - Overview

Tier Management enables brand owners to design the loyalty program to

offer different tiers based on frequency, value, or other characteristics of the

members/membership in the program. Features include:

Multiple tier groups, for example, lifetime tier and a basic tier to track and reward

lifetime value vs. current value of a member

Tier validity for each tier

Rules to determine new and lowest tiers based on different conditions

Tier

Tier

Group

Tier Tier Tier Tier Tier

Tier

Group

Basic Million Miler

Silver Gold Platinum 1 MM 2 MM 3 MM+

Tier

Regular

Tier

Validity

Extended Miles

Validity

Q u a l i f y i n g M i l e s /

Q u a l i f y i n g F l i g h t s

US/Canada

Rest of world

Basic Tier

Guarantee

12 months

EOY

12 months

EOY

12 months

EOY

24 months

EOY

18 months

EOM

2 year

EOY

25.000 /

30

50.000 /

60

100.000 /

100

25.000 /

30

50.000 /

50

75.000/

75

Gold Gold Gold

Miles never

expire

Miles never

expire

Never

expire

Once a million miler

Always a million miler T i e r g r o u p s

a n d T i e r s

Tier Level

T i e r r e w a r d

r u l e s

Point

expiration

overrides

LoyaltyProgram


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Membership Details:

Tiers on Membership Side

Get an overview of the memberships tiers

Tier assignment block shows

Active and expired tiers are shown in a combined list

Provides a complete history of the tier changes in the membership life cycle

Additionally, the totals of qualified points (depending on defined point types) are shown

Change tiers manually

Typically, tiers are defined/updated based on rules

Additionally, it is possible to adjust the tiers manually (upgrade/downgrade/change)

All tier changes are executed via member activities and can be optionally checked on a rule

basis


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2.3. Tiers

2.4. Card Handling








Agenda


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Membership Details:

Card Handling

Membership Card – the external key to loyaltyprocessing

Multiple cards can be assigned to a membership, such as:

Credit Card

Membership Card

Flexible, definable attributes: Card Type, Layout, Title, Status…

External Card No

Card No. is unique across the complete CRM System

Format and content of no. can be defined individually*

External card no. can be used in member activities to identify the membership and member

For example, via API integration in external systems

Data linkage to external card service providers individually possible*

Active and expired cards are shown in a combined list – full card history

* via BAdI implementation on project side


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2.3. Tier Levels

2.4. Card Handling








Agenda


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Member Activities

Member Activities

Member Activity represent an “event” related to the membership An activity contains specific information, for example, trip information in the

case of an airline

Focusing on a member’s point account basically

include earning, redemption, and return actions to

finally update the point balance

Change the tier, reset or change

dynamic member attributes, or execute any

other customer-specific logic.

Member activities are usually sent by

an external application

Member Activities in Memberships

Are shown in a separate assignment block

Provide the user with direct access to the most recent activities


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2.3. Tiers

2.4. Card Handling








Agenda


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Membership Details:

Point Accounts and Point Account Sets (I)

Loyalty Points

Various point types can be defined for a loyalty programs

Each point type is separated into

Qualifying and

Non-qualifying points

Qualifying points are usually used to determine the tier

Non-qualifying points representing the “value” that can be redeemed, for example:

For discount or

Special products, which can be only “bought” with points

Individual point expiration rules can be defined for qualifying and non-qualifying points

Move points from one membership/point account to another

Transfer- and donate points enable movement of non-qualified points from one account toanother

Donate restricts selectable memberships to charity organizations


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Membership Details:

Point Accounts and Point Account Sets (II)

Point Accounts

Are point type related – one point account per point type is createdautomatically with new memberships

Containing all transactions for a particular point type (for example, “Miles”),

including qualifying and non-qualifying points

Reference all related loyalty objects:

program, member, membership, campaign, and so on


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Membership Details:

Point Accounts and Point Account Sets (III)

Point Account Set

Covers all point accounts related to particular membership Can be accessed:

Via the membership (also in interaction center and Web Shop)

Individually by search application


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Membership Details:

Account Statement Generation

Point-related statements can be generated directly

PDF layout and content are defined individually onproject side

Based on SmartForm technology

Quick export for direct interaction with members,

For example, for complains and questions

Regular mass statement generation

APIs are available to

Build own file export report on project side

Link-up to external systemsand to process the data individually


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Membership Details:

Dynamic Attributes

Dynamic Attributes

Dynamic attributes provide the flexibility for loyalty programs to track different characteristicsof members’ activity in the program over a period of time and use them in rule processing, for

example, number of flights, number of stays, total spend

Counters, dates, and text types of attributes can be maintained

Updated by rules during member activity processing

Consumed by rules to customize rewards

Dynamic Attributes in Memberships

Can be viewed in a separate assignment block


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Advanced Membership Management:

Standard (Personal) Membership

Standard (Personal) Membership with single member

An individual person (member) has his or her own, independent membership in a particular

loyalty program

Earned and redeemed points are managed in a specific, member- and program-related

account

Loyalty

Program

Membership Point Account


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Standard Memberships

Features & Benefits

One member, one membership, one account set

Default model in many loyalty programs The membership is independent from others

Membership advantages are related to a single member

The member earns and redeems the points individually

Benefits

Individual and direct: Easy integration into marketing processes


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Multiple memberships, one account set

Multiple members share only their non-qualifying points

Each member still has his or her own membership with all individual attributes

Qualifying points, tiers, member activities, and so on are still membership-related, handled on

individual level


Shared Account Membership

Loyalty

Program

Point Account

Set

Membership

Membership


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Shared Account Memberships

Features & Benefits

Multiple memberships, one account set

Multiple members share their non-qualifying points

Membership advantages are still membership (member)-related

Qualifying points

Tier levels

Dynamic attributes

(Card handling)

Each membership still has its own life cycle

Benefits

Shared accounts can especially be offered for partnerships

Members can earn and redeem their points together

Membership goal to earn a high number of points for redemption, can be achieved moreeasily

Allegiance can be higher, compared to individual memberships


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One membership, one account set, multiple members

Multiple members are assigned to the same membership

They share their non-qualifying and qualifying points, tier, and so on

Each member participates in the same way in benefiting from the membership


Group Membership

Loyalty

Program

Membership Point Account


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Group Memberships

Features & Benefits

One membership, one account set, multiple members

Multiple members are assigned to the same membership

Each member participates in the same way in membershipbenefits

Same qualifying and non-qualifying points

Same tier

Same dynamic attributes

Earning and redemption can be done by each member on thesame level

Each member can have an individual membership card

Benefits

Typical model for “family cards”

The membership and members are handled as one

Membership goal to earn a high number of points for redemption, get membership benefits,can be achieved more easily

Allegiance can be higher, compared to individual memberships


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Merge Memberships

Merge Memberships

Standard membership can be easily

changed to:

Group memberships

(by adding additional members) or

Shared account membership

(by direct membership assignment or explicit merge functionality)

Individual merge procedures supported by BAdI, for example, for:

Handling of qualifying points

Dynamic attributes


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Split Memberships

Split Memberships

Split functionality enables:

Separation of a membership

(Shared account membership) or

Separation of a member and create new membership

(Group membership)

(Non-qualified) Points can be split in predefined ratios

Individual split procedures supported by BAdI, for example, for:

Handling of qualifying points

Dynamic attributes


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