SAP CRM 7.

0
Detailed View

SAP CRM 7.0 Marketing

Loyalty Membership Management

1
 Agenda

1. Loyalty Management Brief Introduction

2. Membership
2.1. 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 Types
3.1. Standard Membership
3.2. Shared Account Membership
3.3. Group Membership
3.4. Split and Merge Memberships

SAP 2008 / Page 2

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 Loyalty Management - Overview
Functional Building Blocks

Program Reward Rules Membership Processing

Management Management Handling Engine

Rule Modeling Membership Types Scalable Engine

Tier Management and Registration Component
Simple & Complex

Points Ongoing and Member Tier Online Member

Management Scheduled Rules Management Activity Processing

Tier-Based Point Batch Member

Standard Actions Member Activities
Expiration Activity Processing

Campaign Eligibility Member Profile Tier Evaluation

Program Partners Maintainence Processing
and Enrollment

Template-Based Point Account Point Expiration

Program Setup Management Processing
Maintenance

Rule Version Basic Membership Simulation of Rule

Dynamic Attributes Card Handling Processing
Management

Integrate / Analyze / Collaborate

Loyalty API Sales Order Web Channel

IC Integration
Connectivity Integration Integration

SAP 2008 / Page 3

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 members 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

SAP 2008 / Page 4

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 members 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.

4
 Loyalty Management - Overview
Communication
Customer
Segments

Customers External
Applications

Internet

Counter
Multi

Phone

E-mail
Letter

Back-
IVR

Fax

Office
Channel
Interaction

Web shop Interaction Center CRM UI Web-Services

Membership Handling

Reward Rule Management

Points / Bonus
Point Member
Determination by

Processing Engine
Accruals Activities
Rule Engine
Loyalty
Management
CRM Marketing

Point Point
Point Account
Redemption Expiration

Program Management

SAP 2008 / Page 5

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 passengers 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.

5
 Agenda

1. Loyalty Management Brief Introduction

2. Membership
2.1. 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 Types
3.1. Standard Membership
3.2. Shared Account Membership
3.3. Group Membership
3.4. Split and Merge Memberships

SAP 2008 / Page 6

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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

SAP 2008 / Page 7

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 Membership:
Between Loyalty Program and Member

Features
Membership represents the participation of an individual
account (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

SAP 2008 / Page 8

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 Membership:
Component Overview

General
Data

Cards Tiers

Membership

Member Activities Point Accounts

Dynamic Attributes

SAP 2008 / Page 9

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 Membership Object
Information Summary (I)

General Reference to Loyalty Program

Data
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 Accounts
Point 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

Dynamic
Attributes 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
Cards
Current and previous cards assigned to the membership
Create and maintain cards and card attributes
Set cards to inactive (for example, stolen, lost)

Assigned
Members
Maintain members in group memberships
(own membership type, described in following slides)

Related
Memberships
Maintain related memberships
(own membership type, described in following slides)

SAP 2008 / Page 12

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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
Who changed what and when in the membership object?
Data

SAP 2008 / Page 13

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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.

SAP 2008 / Page 14

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 Membership
Screenshot

SAP 2008 / Page 15

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 Membership Creation:
Fast Entry via Response Recording Application

Create members and memberships

in one go

Membership creation integrated into

response recording enables you to:
Create or search a member and
Create a membership
in the same application

No navigation to standard account

application needed

Fully integrated into the standard

response recording process
Also includes personalized response
code handling

Especially for manual mass creation processes

SAP 2008 / Page 16

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 Agenda

1. Loyalty Management Brief Introduction

2. Membership
2.1. 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 Types
3.1. Standard Membership
3.2. Shared Account Membership
3.3. Group Membership
3.4. Split and Merge Memberships

SAP 2008 / Page 17

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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
Loyalty
Tier Program Tier
Group Group

Basic Million Miler

Tier Tier Tier Tier Tier Tier Tier

Tier
Regular Silver Gold Platinum 1 MM 2 MM 3 MM+
Tier groups

Level
and Tiers

Tier 12 months 12 months 12 months 24 months Never Once a million miler

Validity EOY EOY EOY EOY expire Always a million miler

Point Extended Miles 18 months 2 year

expiration Validity
overrides EOM EOY
Qualifying Flights
Qualifying Miles/

US/Canada 25.000 / 50.000 / 100.000 /

30 60 100
Tier reward
rules

Rest of world 25.000 / 50.000 / 75.000/ Miles never Miles never

30 50 75 expire expire
Basic Tier
Guarantee Gold Gold Gold

SAP 2008 / Page 18

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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

SAP 2008 / Page 19

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 Agenda

1. Loyalty Management Brief Introduction

2. Membership
2.1. 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 Types
3.1. Standard Membership
3.2. Shared Account Membership
3.3. Group Membership
3.4. Split and Merge Memberships

SAP 2008 / Page 20

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 Membership Details:
Card Handling

Membership Card the external key to loyalty

processing

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

SAP 2008 / Page 21

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 Agenda

1. Loyalty Management Brief Introduction

2. Membership
2.1. Members
2.2. Membership - Details
2.3. Tier Levels
2.4. Card Handling
2.5. Member Activities
2.6. Point Accounts and Sets
2.7. Dynamic Attributes

3. Membership Types
3.1. Standard Membership
3.2. Shared Account Membership
3.3. Group Membership
3.4. Split and Merge Memberships

SAP 2008 / Page 22

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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 members 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

SAP 2008 / Page 23

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 Agenda

1. Loyalty Management Brief Introduction

2. Membership
2.1. 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 Types
3.1. Standard Membership
3.2. Shared Account Membership
3.3. Group Membership
3.4. Split and Merge Memberships

SAP 2008 / Page 24

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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 to
another
Donate restricts selectable memberships to charity organizations

SAP 2008 / Page 25

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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 created
automatically 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 on
project 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 systems
and to process the data individually

SAP 2008 / Page 28

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 Agenda

1. Loyalty Management Brief Introduction

2. Membership
2.1. 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 Types
3.1. Standard Membership
3.2. Shared Account Membership
3.3. Group Membership
3.4. Split and Merge Memberships

SAP 2008 / Page 29

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 Membership Details:
Dynamic Attributes

Dynamic Attributes
Dynamic attributes provide the flexibility for loyalty programs to track different characteristics
of 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

SAP 2008 / Page 30

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 Agenda

1. Loyalty Management Brief Introduction

2. Membership
2.1. 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 Types
3.1. Standard Membership
3.2. Shared Account Membership
3.3. Group Membership
3.4. Split and Merge Memberships

SAP 2008 / Page 31

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 Advanced Membership Management:
Standard (Personal) Membership

Standard (Personal) Membership with single member

Loyalty
Program

Membership Point Account

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

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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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 Advanced Membership Management:
Shared Account Membership

Multiple memberships, one account set

Loyalty
Program

Membership
Point Account
Set

Membership

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
SAP 2008 / Page 34

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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 more
easily
Allegiance can be higher, compared to individual memberships

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 Advanced Membership Management:
Group Membership

One membership, one account set, multiple members

Loyalty
Program

Membership Point Account

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

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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 membership
benefits
Same qualifying and non-qualifying points
Same tier
Same dynamic attributes
Earning and redemption can be done by each member on the
same 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

SAP 2008 / Page 39

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