bhushan.khadpe

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    SAP EhP1 for CRM 7.0 further enhances Loyalty Management with a number of new processes, one of which is in the area of Partner Management. Partner Management enables loyalty programs to develop a network of partners where their members can perform transactions to earn rewards. Examples include airline loyalty programs which have partnerships with car rentals, hotel chains, financial services, etc. or retail loyalty programs which enable you to earn points at gas stations etc.

    Partners are becoming increasingly important to loyalty programs - they are a growing source of revenue, as the partners pay for the points earned by members for activities with them. In return, the partner gets access to a well established customer base, and the ability to develop and execute campaigns targeted to them using the loyalty programs as a marketing channel. The members on their part can collect their rewards in a program of their choice, thereby increasing the program value to them.

    EhP1 enables the end-to-end partner management process including registration of new members by the partner, handling of partnerships in the loyalty program, pricing of points for the partner using pricing procedures, and integration to the CRM Billing Engine for partner billing. Integration to Partner Channel Management (PCM) enables the partners to manage their partnership using the PCM application.

    In this video, which is the first in a series of videos on this topic, you can see how the partnership is managed in the loyalty program and the points being posted to partners. In the next video, I plan to show the CRM Billing Integration.

    Hope you enjoy the video!

    Customer Loyalty Programs have become ubiquitous in the retail industry, and the strategies that companies have employed over the years have now become a commodity. With increasingly empowered and “knowledge customers” at their doors, and with the proliferation of social media, retailers need to focus on loyalty and be consistent in improving upon the individual’s customer experience.

    Join us for an exclusive EcoHub webcast on September 30th at 11:00 a.m. ET with renowned author and blogger Paul Greenberg as he shares his experience advising retailers and other companies about effective means for enhancing customer loyalty.

    Please register.

    In this video on SAP CRM 7.0 - Loyalty Management, I will show how Charity Donations can be requested by loyalty program members by calling into the Interaction Center

    The IC Agent can select the charities which are also setup as memberships in the loyalty program and can transfer the requested number of miles or points from the calling members membership to the charity.

    Such processes help loyalty program managers to enable their members to participate in charitable giving as well as enables them to reduce the liabilities of outstanding points on the loyalty program.

    In my previous video SAP CRM 7.0 - Loyalty Management - Managing Tier Rules, I showed how a marketing manager can use CRM Loyalty Management to maintain tier rules. In this video on SAP CRM 7.0 - Loyalty Management with Bonus Campaign, we will see how the same rules can be used to maintain rules for bonus points.

    In addition to maintaining the rule, because loyalty management is integrated with SAP CRM Marketing, the marketing manager can also create and assign a marketing campaign to the bonus rule. By doing so, enrollment can be enforced by requiring registration for the campaign to earn bonus from the rule.

    Additionally, the campaign, and consequently the reward rule tied to it can also be restricted to certain members of the loyalty programs by assiging eligible segments to the campaign.

    This enables the marketing manager to design campaigns and rules targeted to different segments of the loyalty members.

    Hope you enjoy this video!

    In my previous videos on Loyalty Management (Loyalty Management in IC SAP CRM 7.0 - Loyalty Management in Interaction Center and SAP CRM 7.0 - Loyalty Management in Interaction Center Part II), I showed how an IC agent can service program member calls. In a series of videos to follow, we will go behind the scenes and see how a marketing manager can maintain the loyalty program.

    In today's economy, it is important for companies to quickly respond to changing business, market, and competitive conditions. The flexible Rule Builder which is integrated into loyalty management in CRM 7.0 enables marketing managers to use the rule editor and formula editor to maintain rules easily, and quickly push out incentives, thus enabling them to acquire, retain, and grow a loyal customer base.

    The scenario is built around Super Buy - a Retail Loyalty Program in which members are upgraded into a Premier Buyer status when they spend $2000 in a calendar year. The Premier members also receive a 20% bonus on all spending. Following an analysis of the program performance, Super Buy has determined that from 2010 they need to increase the qualification criteria to $2500, and also increase the bonus to 25%. Click here to see the video entitled Loyalty Management - Managing Tier Rules which shows how the marketing manager Robert Smith can do this using the rule builder.

    Hope you enjoy this video… stay tuned for the next video around a loyalty marketing campaign.

    Profitable customer relationships are the lifeblood of any commercial enterprise. The need for increasing focus on the customer and customer loyalty comes from the realization that dissatisfied customers are usually gone for good, and more importantly, they can have considerable negative repercussions on the brand. Satisfying and retaining customers, on the other hand, requires up to a fifth of the expenditure and resources than customer acquisition and opens up the potential for additional sales (cross-selling).

     

    Yet studies from Gartner and Forrester Research show that companies still do a decidedly poor job of nurturing, cultivating or even reactivating customers in order to drive sustained revenue growth, loyalty and bottom line performance. Pretty often, marketers are flying blind when it comes to leveraging customer data and analytics. Studies show that marketers are also struggling to gain a true and timely view of the customer due to inadequate or incompatible IT systems and databases, siloed data in functional areas and a limited strategic focus or management mandate on customer data integration. As a consequence, pretty often marketing executives state they have no system for reactivating dormant or lost customers, and only half have a strategy for further penetrating or monetizing key account relationships systematically. 

     

    To address this issue, customer loyalty management should be made part and parcel of a comprehensive CRM strategy. As such, modern loyalty management systems have to be CRM-centric, integrated in sales, service, and marketing, and multi-channel enabled, giving a 360-degree view of the customer at any point of contact. The system should enable brand owners to design a flexible loyalty management strategy, and provide tools to model various loyalty enhancing tactics around member psychographics, award/status levels, and rewards/points. To react to fast changing business conditions, a robust rule modeler and processing engine are a necessary component of a loyalty solution. It is important that business users are able to model new rules and offers, without the intervention of IT.

     

    In turmoiling economic conditions, loyalty customers become even more important and attractive: Retaining satisfied customers reduces costs and frees up marketing budgets for other important activities.

     

    This blog was jointly written with Dr. Ralf E. Strauss, Head of CRM Marketing, CRM Global Product Management.

    The SAP CRM 7.0 release adds to the marketing processes in CRM with the introduction of Loyalty Management. Loyalty management @ SAP is multi-channel and fully integrated with CRM Marketing, Interaction Center, CRM Sales Order, and Web Channel.

    In this SAP CRM 7.0 video (Part 1) -  I show how an IC Agent can perform various processes such as new member enrollment, campaign registration, and placing orders which earn points.

    Hope you enjoy it! This is the first in a series of videos on loyalty management. Stay tuned for the next video…

    The SAP CRM 7.0 release adds to the Marketing processes in CRM with the introduction of Loyalty Management, and enhances existing processes of Segmentation, Campaign Execution, and Address List Handling with high volume execution capability.

    Loyalty Management

    Loyalty programs have changed the way consumers interact with companies, from the way they purchase products or services, to how much they spend. Benefits of loyalty programs include cost efficiency of customer loyalty, better understanding of customer value, ability to drive customer behaviour, and generate additional revenue. Loyalty management @ SAP applies across multiple industries where loyalty programs are utilized to build customer relationships and to promote specific customer behaviors. Loyalty management enables marketers to plan and execute closed loop loyalty programs, such as frequent flyer programs, rewards programs, or bonus programs, and target their most loyal customers with customized offers. Key enabling capabilities for loyalty management in CRM 7.0 include program design, robust rule modeling, flexible membership management, and a highly scalable processing engine to process the program rules.

    Functional Overview of Loyalty Management

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    To be successful, loyalty programs have to be part and parcel of a comprehensive CRM strategy. Loyalty management @ SAP is multi-channel and fully integrated with CRM Marketing, Interaction Center, CRM Sales Order, and Web Channel. Brand owners can design and execute closed loop marketing campaigns using CRM Marketing. Interaction Center and Web Channel integration enables program members to access their accounts using the preferred channel. Sales Order integration enables program members to earn and redeem loyalty points in the buying and selling process.

    Point Redemption and Campaign Registration in Web Channel
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    High Volume Marketing Enablement

    High Volume Segmentation and Campaign Execution are enabled by scalability enhancements that address the needs of high-volume marketing environments, where marketers deal with target groups that consist of large number of end-consumers.

    High Volume Segmentation Model
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    Stay tuned for more details and videos of the new processes!

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