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<Insert Picture Here> <Insert Picture Here>
Drive Customer Loyalty with Siebel Loyalty
Daniel Burian
Customer Experience Architect
Drive Customer Loyalty





August 2012
Michal Zboil
CRM Sales Consultant
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The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracles
products remains at the sole discretion of Oracle.
Safe Harbor Statement

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Agenda

Customer Case Studies

Outline of Siebel Loyalty Solution
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Siebel Loyalty across 10 Industries

2007 2005
2009 2008
Major
US
Airline
2004
Strong references
On-Premise and
Hosted/BPO deployments
Point and Suite
deployments
B2C, B2B and B2E
Deployments
Strong validation of the
latest Siebel Loyalty
Release
Now also available as
a BPO offering!
Now
2006
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Siebel Loyalty in Retail
Business Drivers:
First-Generation product-centric
loyalty programs underperforming
Need to move strategic customer-
centric loyalty programs
Cross-Channel ubiquity and need
to deliver consistent customer
experience driving need for an
integrated CRM platform

Siebel Loyalty Value Proposition
Integrated, scalable multi-channel
loyalty solution that delivers on
next-gen customer centric loyalty
programs
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Siebel Loyalty in Retail
The Company
Starbucks is the largest coffeehouse company in the world with over 9000
stores in the US and over 16000 stores, world-over in 55 countries.
The Challenge
Starbucks market dominance is challenged with entry of Dunkin Donuts
and McDonalds in coffee beverages market. In order to retain its loyal
customers, Starbucks decided to launch a loyalty program to reward,
recognize and deliver great in-store experiences. Starbucks ran its loyalty
program on a hosted system (First Data), which lacked flexibility, scalability and
functional capabilities.

The Solution
In order to deliver on its customer experience strategy, Starbucks decided to
bring customer data in-house and migrate to a next-generation loyalty
platform that is functionally rich, scalable and integration ready to:
Drive a highly innovative and dynamic, customer-centric loyalty program
Enable personalized experiences across channels through real-time integration
with PoS, starbucks.com and mobile
Manage huge transaction volumes (over 11,000 stores North America)
Starbucks chose Siebel Loyalty and Siebel Marketing solution.

The Journey So Far
Starbucks went live on Siebel Loyalty in February, 2011. All 9000 stores in
the US and 1500 stores in Canada are integrated to Siebel Loyalty.
Starbucks customers can now earn stars for their visits and redeem their
free beverage loyalty coupons in real-time at the PoS and earn recognition
status to enjoy exciting privileges (free Wi-Fi, birthday drink, etc.).
In the next phase of deployment (summer of 2011), Starbucks will go-live on
Siebel Marketing and enhance its loyalty program value proposition by
Rewarding customers based on who they are and what they bought, cross-
channel brand advocacy and loyal behavior
Enabling customers to recognize themselves and redeem their coupons at the PoS
using their mobile phones.
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My Starbucks Reward Highlights
Starbucks PoS systems across USA and Canada are connected in real-time with Siebel
loyalty (in addition to starbucks.com).





Customers have to own a pre-paid Starbucks card to be able to enroll into My Starbucks
Reward and earn stars
As of today, Starbucks already has 150 M cardholders and 10 M My Starbucks Reward
members
With its new loyalty program Starbucks wants to attract new memberships and expect it to reach
over 100 M
6 Million customers visit Starbucks everyday in the US - they earn stars approx in 4 hours
after their visits through a recurring loyalty batch engine process run 24 x 7/365 days a year
With the success of its Siebel Loyalty rollout in North America, Starbucks is now working
on international deployment strategy
Alsea, Starbucks franchise in Latin America has also initiated implementation of Siebel
Loyalty
Business Functional Area Processing Mode Key Performance Indicator
POS Real Time More than 300 txn/s
POS Real Time Average 300ms/txn (round trip POS to Siebel)
starbucks.com Real Time More than 60 txn/s
starbucks.com Real Time Average 1s/txn (round trip .com to Siebel)
Loyalty Transactions Batch 500 Txn/s (10 steps process)
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http://news.starbucks.com/archive
http://www.nasdaq.com/aspx/call-transcript.aspx?StoryId=200103
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Loyalty Case Study FNAC
Organization & Issues Results Objectives
Founded in 1954
Over 1.8 million members
Turnover 3.8 billion
67 stores in France
Leading retailer of culture and
leisure products in France,
Belgium, Spain and Portugal.

Issues:
Obsolete existing Loyalty
application
Inflexible and costly
legacy system
Designed for 1/6 of actual
members

Improve customer
segmentation (e.g., tier, type,
value)
Unique customer repository
Treat customers in a targeted
manner across every touch point
by unifying their systems
Increase program and promotion
flexibility while significantly
reducing costs

Siebel Loyalty
Loyalty Manager: 20 users
Loyalty Member Services
Representative: 780 users;
700 POS; Q1 2006; impl Unilog

750 000 transactions processed
weekly
Grown membership from 1.6
million to 3.8 million
Members buy 3x more often and
10x more on average than non-
members
Access to all of a members
information on a single screen for
fast, accurate customer insight
More effective, customized
promotions, such as happy hour
awards points, that reward the
right person at the right time and
place
Shortened the time needed to train
the hosts and hostesses stationed
at La Fnacs membership stands
and customer-service counters
Solution
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Case Study The Body Shop
Transforming Loyalty Program Effectiveness
WHY ORACLE
Strong foundation and data model, with a single solution
for the entire domain, from loyalty program management
to marketing campaign and call centers

COMPANY OVERVIEW
The Body Shop is the second largest cosmetic
franchise in the world, with over 2,500 stores
in over 60 markets worldwide
Founded in 1976, The Body Shop becomes
part of the L'Oral Group in 2006
4M customers in their worldwide CRM
database

CHALLENGES/OPPORTUNITIES
Move from discount strategy having a bad
impact on the brand
Recruit the long-tail customers
Provide a much better and integrated
customer experience across touch points
Main objective is to drive traffic in stores

SOLUTIONS
Siebel Loyalty
Siebel Marketing
Siebel Call Center
Siebel Analytics
RESULTS
Siebel Loyalty deployed in Belgium and Austria
Live since November 2010 after 6 months project
(including new website & new POS deployment)
Real-time integration with POS for online redemption
Integrated with SAP ERP
Expected higher number of transactions from
members, versus with the previous program, for the
same basket
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2012 Oracle Corporation Proprietary and Confidential

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Agenda

Customer Case Studies

Outline of Siebel Loyalty Solution
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Customer Loyalty Management
Increase the value and duration of your most important relationships
Next-generation solution
for creating innovative,
customer-centric loyalty
programs
Enables rapid partner set-up
and management
Delivers pre-built loyalty
processes and task-based
flows
Provides actionable insight
into member behavior with
unified customer views



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Loyalty Promotions
Promotions enables you define various logic of your Loyalty programs
Simple Promotion
Simple Frequency Promotion
Complex Frequency Promotion
Joint Promotion
Time-based Promotions
Theme-Based Loyalty Clubs
Event-based Promotions
Activity-based Promotions
Promotions are rules that govern who gets a reward for a specific action.
They are date defined and may or may not require enrollment
Any member or transaction attribute can be used in the promotions rules
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Hot Topics in Our Loyalty Solution
You can benefit from our new key capabilities
Loyalty 1:1 Business User Empowerment Industry Best Practices
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Loyalty 1:1
Last Mile of Customer Intimacy
Event-Based Promotions
Time-Based Promotions Theme-Based Loyalty Clubs
Drive brand
affinity and
stickiness with
targeted and
exclusive
'Theme- based
Loyalty Clubs
Surprise and
Delight
members with
personalized
rewards linked
to special
lifecycle events
Anniversary
Birthday
Christmas
..
Drive traffic,
channel selection
and profitable
customer behavior
with Time-based
Promotions
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Theme-Based Loyalty Clubs
Last Mile of Customer Intimacy
Launch new Parents Club
Target new/expecting
parents to join Parents Club
Targeted clubs for members with
special interests
Modeled as time-bound loyalty
promotions with exclusive loyalty
entitlements
Eligible members can enroll for a fixed
duration
Deliver special promotions on
baby products for 2 years
Offer them Kindergarten Club
.After 2 Years
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Time-Based Promotions
Last Mile of Customer Intimacy
Reward members for their
transactions and activities in a
specified time window
Include new Calendar
promotion object to flexibly
define time-based promotions
Personalized rewards based
on member profile and
preferences
You can create promotions that reward purchases made on specific days/times or made
frequently:
Purchases made between 4 and 6 PM
Purchases made on Mondays
Purchases made during the first
week of the year.
The third purchase made in a given month.
The second purchase made in the same
week.
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Business User Empowerment
Innovation at the Speed of Business
Graphical Promotion Designer
Enrich business user
experience with drag-
n-drop interface to
graphically sequence
promotions in the
desired order of
execution
Hierarchical Rules Author
Improve usability
with mental model-
based hierarchical
rules editor
Rule Templates Library
Enhance business
user productivity
with library of re-
usable rules
templates
Advanced Transaction Simulation
Increase user insight
and improve
customer
serviceability with
advanced simulation
and processing log
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Graphical Promotion Designer
Innovation at the Speed of Business
Drag & drop user interface
Guided promotion execution
(parallel & sequential)
Advanced processing with
in-memory transient results
to support complex
promotions
User-defined process flow
controls


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Check Transaction
Eligibility
(>25 )
Calculate
points
Anniversary
Bonus
Event Based
Promotion
Time & Transient
Value Based
Promo
Theme Based
Promo
500
Points
Weekday Leisure
Promotion
(50 points)
Outdoor Club
Promotion
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Industry Best Practices
Best-in-Class Processes for Retail and other industries
Dynamic Vouchers
Deliver
innovative
rewards and
instant
gratification with
dynamic
vouchers
Recurring Awards
Drive customer
behavior and
manage points
liability with
recurring awards
Modularized Loyalty Engine
Align system
resource utilization
to customer service
levels with
enhanced user-
controls
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Recurring Awards
Drive Recency, Frequency and Monetary Value
Redemption Velocity is the key indicator
of the success of a Loyalty program
Members who redeem their points and get a reward
are more likely to increase program participation,
churn at a lower rate, increase spend/frequency,
and stay engaged with the program and brand
longer
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Multiple redeemers outspend non-redeemers on an average of 3:1
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Select Eligible Members
(Point Balance >= 3000)
Run Batch
Redemption Process
Redeem
Members Points
Reward Vouchers
to Members
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Loyalty Analytic - Complete Insight
Complete visibility and control of your Loyalty program
Drill to promotions to
renew or add
What promotions exist to
support these segments?
What is the redemption
trend over the past 12
months?
Drive Membership
Growth
What segments
have the highest
redemption rate?
What are the top
redemption products?
Business
Objectives/
Issues
Gain
Insights
Take
Action
Loyalty Program Overview
Loyalty Points Analyses
Loyalty Member Tiers Analyses
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Main Upcoming Theme Social Loyalty
Driving profitable social behavior and cultivate community of social influencers

Social Promotions
Setup and launch
powerful promotions
based on social
attributes combined
with tracked profile
and behavior in
CRM
Social Rewards
Incent positive social
behavior and
customer advocacy
Integrated Gamification
Drive brand affinity
and engagement by
assigning coveted
levels and badges
Outbound Posts
Distribute loyalty
promotions
seamlessly onto
social networks,
increase speed-to-
market and expand
customer reach
Sentiment Analysis
Automatically track
customers social
sentiment to drive
actions and
responses, for brand
reinforcement
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Loyalty Solution From Customer Perspective
Example how you can interact with your loyalty program members
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