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

1. Driving Customer Loyalty at Holland America Line Olivia Dalesandro, Holland America Line Emil Sarkissian, Loyalty Methods

2. Contents Introduction Why Loyalty? Challenges Before Siebel Why Siebel? Lessons Learned Technology Best Practices What Matters Typical Challenges Q&A 2

3. 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 Line 3

4. 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 4

5. 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 Sales 5

6. 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. 6

7. 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 functionality 7

8. 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 Volume 8

9. 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 Transactions 9

10. 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 Often 10

11. 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 11

12. 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 Processing 12

14. Don’t Settle for Workarounds

15. Consistency across Touch-points

16. Use SOA Architecture and Design Patterns

17. Avoid Point-to-Point Interfaces

18. Reliability in Uptime and Performance

19. Consider Redundancy and High Availability

20. Emphasize Performance Testing

21. Devise Fall-back Procedures13

22. 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” 14

23. 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 Strategy 15

24. Top Three Challenges Scope Control Issues Poor Configuration and Customization Integration Dependency Slips 16

26. Avoid “Kid in Candy Store” Syndrome

27. Avoid “Now or Never” Syndrome

28. Develop Good “Scope Litmus Tests” to Maintain Focus

29. Inconsistent Organization of Scope

30. Use Cases can Help Organize and Label Scope Consistently

31. Keep Scope Labeled Consistently throughout Project Lifecycle.17

32. Poor Configuration and Customization Lack of Product Experience Avoid “hammer-nail” Syndrome If all you Have is a Hammer, EverythingLooks 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 First 18

34. Develop Jointly and Iteratively

35. Seek to Validate Intermediate Results

36. Lack of Partner Accountability

37. Quantify and Explain Slip Impact

38. Use More Granular Milestones

39. Focus on Results, not Finger Pointing19

40. Conclusion 20 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 Aggressively

41. Q & A Thank You … odalesandro@hollandamerica.com esarkissian@loyaltymethods.com