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Driving Customer Loyalty
 

Driving Customer Loyalty

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Discover how Loyalty Methods helped Holland America Line achieve success with Siebel Loyalty

Discover how Loyalty Methods helped Holland America Line achieve success with Siebel Loyalty

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    Driving Customer Loyalty Driving Customer Loyalty Presentation Transcript

    • 1
    • <Insert Picture Here>Driving Customer Loyalty at Holland America With Siebel LoyaltyManagementOlivia Dalesandro, Holland America LineEmil Sarkassian, Loyalty MethodsSundar Swaminathan, Oracle
    • The following is intended to outline our generalproduct direction. It is intended for informationpurposes only, and may not be incorporated into anycontract. It is not a commitment to deliver anymaterial, code, or functionality, and should not berelied upon in making purchasing decisions.The development, release, and timing of anyfeatures or functionality described for Oracle‟sproducts remains at the sole discretion of Oracle. 3
    • Program Agenda Example• Loyalty Management – Industry Trends <Insert Picture Here>• Oracle Hospitality Solutions Overview• Loyalty Management at Holland America 4
    • Overall Market Trends in Loyalty Management1. Even during the recession, consumers valued Loyalty programs more than ever2. Loyalty programs are increasingly focused on „best customers‟ as programs get big and expensive to manage; marketing budgets tighten • With 1.8b memberships in the US alone, organizations are now focusing on identifying their “champion customers”, building relationships with them, and giving them incentives and opportunities to provide positive feedback about their brand3. Rewards are becoming key differentiators – going beyond traditional „Points • Luxury retail and hospitality leading trend in Experiential rewards • Loyalty programs emerging as a form of „Lifestyle marketing‟ – an activity centered around the interest, attitudes, opinions and the way of life of the best customers4. Coalition and Multi-Partner loyalty programs gaining popularity amongst both consumers and providers • Providers can rapidly acquire customers, share marketing costs generate strong ancillary revenue, and expand internationally by virtue of multi-territory partners • Consumers get broader range of products and services to earn and burn5. Mobile technology for Loyalty management gaining interest and momentum • Providers exploring mobile phone as a channel to broadcast advertisements and SMS coupons including 2D/3D barcode images that can be scanned at the PoS • NFC technologies now allow easy recognition (replacement for plastic cards), contactless payment, opt-in promotions and even C-to-C viral marketing 5
    • Loyalty Trends in Key Industries and Challenges Industry Key Trend Challenges • Airlines continue to invest in Loyalty initiatives and • Costly, inflexible, standalone, legacy systems Airline benefit from loyal customers as the global constraining innovation, speed-to-market and economy recovers from the economic downturn : delivery of „value-based‟ service – *90% of airlines in a survey indicated that they • Spin off initiatives driving need for complete are making special efforts towards loyal integrated platform to support running of customers independent business (not just program), including – 80% of the respondents feel that past Financial and back-office management investments in loyalty programs are paying off • Retail Loyalty programs gaining momentum in – Shift from product to customer centricity Retail recession – Cross-channel ubiquity and need to deliver – Retail loyalty programs now account for 701 M consistent customer experience memberships or 39% of overall loyalty program memberships in the US – Inflexible 1st generation system driving replacement market - 54% of the retailers plan to invest in next- generation CRM/Loyalty platform# Telco • Adoption of loyalty programs as a key driver for • The need to reduce cost of acquisition and build customer retention is on the rise in Telco effective switching costs to control churn led by number portability and commoditization Fin.Serv • Financial services are looking at extending their • The need for cross-enterprise unified customer loyalty programs proposition beyond credit cards view to maximize customer value and leverage loyalty program to deliver „relationship‟ valueHospitality • Hotels and cruise lines are making their loyalty • The need to develop a 360 degree view of the programs more attractive to battle recession – customer so hotels can differentiate the customer 62% of travelers in a recent survey indicated that experience and leverage the loyalty program to they are „even more loyal‟ to brands, largely strengthen brand equity influenced by their effective loyalty programs *FFP 2009 Survey 6 #Stores Systems Study, 2008
    • Oracle Siebel Loyalty Management Comprehensive Cross-Industry Solution Driving Next-Generation Loyalty Business Enterprise• Comprehensive Solution Integrated with World-Leading Siebel CRM Suite • Manages complete loyalty marketing lifecycle • Delivers on unified cross-enterprise customer view• Highly Flexible, Configurable and Business- friendly solution • Drives innovation quickly, easily and cost-effectively to respond swiftly to marketplace developments• Architected for Scalability & Performance • Supports large and complex loyalty programs • Drives real-time rewards and recognition across multiple channels• End-to-End Automation of Cross-Industry Processes • Enables accelerated deployment • Drives lower TCO• Multi-Channel Solution • Allows members and partners to participate in the program and drives enhanced operational efficiencies • Provides tools & services to integrate Loyalty with 3rd party interfaces 7
    • Oracle Siebel Group Sales and Event ManagementLead Capture to Service Delivery Lead Capture/ 1 Property Selection Service Delivery • Check Availability 6 Customer insight 2 & Pricing • Cross-sell properties • Customer & invoicing • Strategic account selling • Centralized inventory • Trial checks • Account teams • Function space, guest • Actuals rooms and assets • Account billing information • Enterprise visibility • Taxes and service charges Event Revenue Mgmt 5 Management 3 Evaluation Inventory • Menus and packages 4 Management • Profit maximization • Banquet event orders • Thresholds • Event templates • Function space diary • Revenue estimates • Function detailing • Total hotel availability • Demand capture • Event turnover • Options and overbooking • Average values • Function space optimization • Asset booking 8
    • Oracle’s Solution Footprint for the Hospitality Industry Management CRM Customer Marketing Customer Service Sales Partner Management Call Center Self Service Business Analytics Back Office Operations Revenue/Yield Point of Sale Financials & HR Management CRM Financials Core Asset Time and Labor Sales & Catering Central Reservations Human Supply Chain Management Management Events Mgmt Resources Document Enterprise Property Business Intelligence Loyalty Management Management Planning System Corporate Corporate Administration Admin Facilities / Property Human Helpdesk: Asset Management CPM Financials Procurement Projects Resources HR / IT ManagementInfrastructure Data Management Development Tools & Middleware Hardware Java Platform, Application Servers, Database Master Data Financials Business Application Integration, Identity Servers, Storage Systems, IPTV RAC Management Intelligence Management, Content Management Oracle ISV Partners 9
    • Loyalty Trends in Key Industries and Challenges Industry Key Trend Challenges • Airlines continue to invest in Loyalty initiatives and • Costly, inflexible, standalone, legacy systems Airline benefit from loyal customers as the global constraining innovation, speed-to-market and economy recovers from the economic downturn : delivery of „value-based‟ service – *90% of airlines in a survey indicated that they • Spin off initiatives driving need for complete are making special efforts towards loyal integrated platform to support running of customers independent business (not just program), including – 80% of the respondents feel that past Financial and back-office management investments in loyalty programs are paying off • Retail Loyalty programs gaining momentum in – Shift from product to customer centricity Retail recession – Cross-channel ubiquity and need to deliver – Retail loyalty programs now account for 701 M consistent customer experience memberships or 39% of overall loyalty program memberships in the US – Inflexible 1st generation system driving replacement market - 54% of the retailers plan to invest in next- generation CRM/Loyalty platform# Telco • Adoption of loyalty programs as a key driver for • The need to reduce cost of acquisition and build customer retention is on the rise in Telco effective switching costs to control churn led by number portability and commoditization Fin.Serv • Financial services are looking at extending their • The need for cross-enterprise unified customer loyalty programs proposition beyond credit cards view to maximize customer value and leverage loyalty program to deliver „relationship‟ valueHospitality • Hotels and cruise lines are making their loyalty • The need to develop a 360 degree view of the programs more attractive to battle recession – customer so hotels can differentiate the customer 62% of travelers in a recent survey indicated that experience and leverage the loyalty program to they are „even more loyal‟ to brands, largely strengthen brand equity influenced by their effective loyalty programs *FFP 2009 Survey 10 #Stores Systems Study, 2008
    • <Insert Picture Here> Driving Customer Loyalty at Holland America Line Olivia Dalesandro, Holland America Line Emil Sarkissian, Loyalty Methods
    • Contents  Introduction  Why Loyalty?  Challenges Before Siebel  Why Siebel?  Lessons Learned  Technology Best Practices  What Matters  Typical Challenges  Q&A12 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Introduction Holland America Line  Premier Luxury Cruise Line  15 Ships, 800-2100 Passengers Capacity  Sailing to 7 Continents  Subsidiary of Carnival Corporation Loyalty Methods  Implements Siebel Loyalty, Marketing and Analytics  First to Implement Large-scale US-based Airline (Alaska Airlines)  Extensive Loyalty experience in Airline, Hospitality and Retail Industries  Loyalty, Marketing, Analytics Implementer at Holland America Line13 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Why Loyalty? Understand Customer Preferences Increase Yield Performance Increase Repeat Business Rates Improve Guest Experience Strengthen Brand Affinity & Create Brand Advocates Improve Guest Data Quality 14 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Marketing Direction  Drive Repeat Business via Recognition of Customer Loyalty Status  Attract New Spending via Loyalty Incentives and Targeted Product Promotions  Use Ad-hoc Promotions to Dynamically Influence Specific Product Sales15 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Program Details Official Launch – October 2009 Points Awarded to Guests for:  Number of Days Cruised  On-board Spending = Extra Days  Bonus Days for Booking Suites Points Drive Loyalty Tier Status  One-to-Four Star Mariners Tier Rewards Include  On-board discounts (wine packages, brunches, etc.)  Third and fourth guests discounts  Exclusive offers to members  Free subscriptions, gifts, etc. 16 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Challenges Before Siebel Mainframe UI not user friendly No real-time changes to data All updates were entered by a third-party vendor manually No ability to change the program and create ad-hoc promotions No remote use of old system Poor response time for administration or troubleshooting Almost impossible to change functionality17 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Why Siebel? Part of a All-Encompassing CRM Program  Sales, Guest Relations, Marketing and Loyalty  Unified Customer View Consistent, Friendly, Flexible User Interface Extensible with HAL-specific Data Ad-hoc Promotions are Clicks Away Seamless Integration with all our Customer Touch-point Systems Allows HAL More Control over Data Handles High Transaction Volume18 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Results to Date Increased guest satisfaction as a result of more valuable benefits compared to old program. Guests actively working towards achieving higher loyalty status. Tangible benefits attract new guests and help retain past guests. Marketing is now able to leverage loyalty information to better target guest mailings.  Use Tier Status and Lifetime Points  Use On-board Spending Transactions19 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Lessons Learned Prepare and Organize  Start by Analyzing Existing Processes  Visualize in Detail How You will Deliver on Your Promises  Standardize Processes  Understand Customer Impact  Evaluate Risk at each Customer Touch Point  Operational Procedures Across Multiple Properties  Identify Training Needs Including Trainers, Trainees, Timing, Materials, Delivery Methods Reach Out to Partners – Internal/External  Identify, Engage and Secure Resource Commitment from Internal and External Partners  Involve Partners in Collaborative Planning Early and Often20 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Lessons Learned Know What You Want and Why  Define Scope Clearly  There is Usually More Than One Way to Accomplish the Same Result – Try to Stay with Out-Of-Box Functionality when Possible Know Where You Stand  Manage Scope Aggressively  Track Project Progress Frequently Test, Test, Test  Budget and Identify Test Resources During Initial Planning  Involve Test Lead from the Start  Try to Conduct Testing at a Common Physical Location 21 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Technology Best Practices  Siebel Loyalty Projects are Different  Highly Visible to End Customer  Delivered through Customer-facing Technology  Consistent Delivery becomes a Critical Success Factor  High Number of Customer Touch-points  Large Number of Interfaces to Disparate Internal/External Systems  Loyalty is a Core Enterprise IT System  Owns Large Volume of Data  Large Volume of Online and Batch Transaction Processing22 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • High Visibility to End Customer  Simplicity and Clarity of Program Rules  Use Focus Groups to Improve Clarity  Provide Training to Respond to Common Questions  Seamless Reward Tracking and Delivery Experience  Don‟t Settle for Workarounds  Consistency across Touch-points  Use SOA Architecture and Design Patterns  Avoid Point-to-Point Interfaces  Reliability in Uptime and Performance  Consider Redundancy and High Availability  Emphasize Performance Testing  Devise Fall-back Procedures23 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • High Number of Customer Touch Points Interfacing with Many Systems  Start with Integration Point Inventory  Clearly Understand Data Ownership  Get Data Samples as Early as Possible Proactive Co-ordination with Internal/External Partners  Involve them Early during Planning  Plan Collaboratively and Obtain Commitment  Understand their Resource Availability  Understand their Priorities  Maintain On-going Productive Relationship  Don‟t Develop Interface Agreements in a Vacuum  Avoid “transactional behavior”24 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Loyalty is a Core IT System High Availability and Redundancy  Consider Hosting Options  Work with your Integrator and Expert Services  Architecture and Configuration Review  Production Readiness Review Consistent Performance to SLAs  Understand Expected Volumes and Size Hardware Correctly  Budget and Plan for Extensive Performance Testing  Involve a Performance DBA Early during Technical Design  Develop Consistent Job Scheduling Framework Enhanced Interface Error Handling  Develop a Consistent Error Logging Framework  Develop a Clear Monitoring Strategy25 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Top Three Challenges Scope Control Issues Poor Configuration and Customization Integration Dependency Slips 26 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Scope Control Issues The Meaning of Scope  Scope is work. Work to change the product and/or work to change the business process.■ Scope Creep  Avoid “Kid in Candy Store” Syndrome  Avoid “Now or Never” Syndrome  Develop Good “Scope Litmus Tests” to Maintain Focus■ Inconsistent Organization of Scope  Use Cases can Help Organize and Label Scope Consistently  Keep Scope Labeled Consistently throughout Project Lifecycle. 27 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Poor Configuration and Customization Lack of Product Experience  Avoid “hammer-nail” Syndrome  If all you Have is a Hammer, Everything Looks Like a Nail  Talk to Companies who Have Implemented Loyalty  Seek and Verify References  No sales/marketing budget can buy a great reference.  Use Oracle Expert Services Reviews  Seek Continuous Validation from Oracle TAM  If Custom Work Looks Like Overkill, Use Cost Benefit Analysis  Always Consider Changing the Business Process First28 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • External Dependency Slips Invalid Assumptions about Partners  Understand Partner Priorities and Constraints  Understand Partner Downstream Dependencies  Maintain Good Relationship Long “Dark Periods  Develop Jointly and Iteratively  Seek to Validate Intermediate Results Lack of Partner Accountability  Quantify and Explain Slip Impact  Use More Granular Milestones  Focus on Results, not Finger Pointing29 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Conclusion Loyalty is Strategically Important  Mission Critical Marketing Component Siebel Loyalty Works  Scalable and Flexible Platform  Rich Feature Set to Centrally Manage Loyalty Programs Pervasive Nature of Loyalty  Includes Multiple Customer Touch-points  Leads to Multiple Integrations inside and outside the Enterprise Requires Slightly Different Implementation Approach  Prepare Well  Plan and Execute Collaboratively  Manage Scope and Risk Aggressively30 Copyright © 2010 by Loyalty Methods, Inc. All rights reserved.
    • Thank You … QA odalesandro@hollandamerica.com sundar.swaminatan@oracle.com esarkissian@loyaltymethods.com
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