1. Loyalty Programs In Marketing

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You can use the SAP Customer Relationship Management (SAP CRM) application to support business processes in the area of loyalty management. These processes include the planning of loyalty programs, management of memberships and loyalty points, processing of member activities, and customer self-service in Web shops.

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You can use the objects and functions described here to track customer behavior, to identify which customers are most valuable and take steps to retain them, and to encourage specific customer behavior.

Before starting to use all the Loyalty Management features, the customizing needs to be maintained accordingly.

The path for Loyalty Management can be found under:

SPRO --> CRM --> Marketing --> Loyalty Management

Basic Settings

Define Loyalty Types

Loyalty Program

A Loyalty Program is an object type which is used for the whole Loyalty Management Business Process. It can be interpreted as a container which includes all Loyalty relevant tasks and objects, such as member activities and point redemption.

Reward Rule Group

The Reward Rule Group consists of all Reward Rules which are executed together during a member activity. Each reward rule group has a purpose, for example, tier change or bonus points.

Reward Rule

Reward Rules are set up rules which are being executed during a certain member activity. If the member activity fulfills the rule condition, the Loyalty Engine executes the maintained action. These actions can be for example:

• Earn Points
• Redeem Points
• Change Tier Level

Loyalty Programs

Define Profiles for Loyalty Program Types

First a Program Type needs to be defined, which contains all the Loyalty Business Process relevant information.

If the Loyalty Program should contain Tier Levels and Tier Management, first a Tier Profile needs to be created which contains the different Tier Groups.

A Tier profile can contain multiple Tier Groups which finally contains different Tier Levels. A member can be assigned to one Tier Group and change Tier Level inside this particular group, independent of Tiers inside other Tier Groups.

Tier Groups can be set to PUBLIC or PRIVATE. If it is set to public, the Group is visible for all members, if set to private, the group is only available and used for internal purposes.

For the Tier itself, the Date Calculation Procedures has to be defined, whch sets a rule when the Tier expires and the next lower Tier is set.

Packard bell easynote drivers. As for the Tier Profile, Loyalty Points also need a Profile which contains all the needed information. Loyalty Points are used to reward and influence members of the designed Loyalty Program.

For each Point Type a Date Calculation Procedure needs to be defined which handles the expiration date of this specific type. The conversion factor needs to be set up as how this Point Type is beeing converted to other Point Types inside the Loyalty Program.

Further can different Card Types be defined for a Loyalty Program. This card can be set to Default which signifies that this card is already assigned to a certain member inside the Program. Otherwise it can be set to Anonymous, where it be handed out to a anonymous member who collects points and needs to activate the card later. Afterwards the card is assigned to a member account.

Dynamic Attributes

You use dynamic attributes to track member behavior in the context of reward rules or your loyalty program, and to trigger actions, for example, to change a member's tier. You can define dynamic attributes for use as counters, or for recording dates or text. Dynamic attributes are a key function in the execution and evaluation of your loyalty program.

For example it is possible to track how many purchases a member has done and reward this member with a certain amount of Points for each or after a particular number of transactions.

Different created Attributes can be assigned to the previous created Loyalty Program. These attributes can later also be set with pre definded possible values for easier selection.

Point Accounts

Point Accounts hold all the transaction history for a specific memership. These points can be of different qualification types:

• Redeemable Points
  • These Points are used for redeeming them against products or services which are defined inside the Loyalty Program. It is also possible to buy points if not a certain level is reached to buy a product.
• Qualifying Only Points
  • This type is for reaching a Tier Level. These points cannot be redeemed and used for a buying process. These points do not have an expiration date, they expire by reaching a new Tier Level.
• Qualifying and Redeemable Points
  • A combination of the previous two types. Members have the possibility to reach Tier Levels and consume points for buying processes. Furthermore, points are also able to be bought to reach a new Tier Level for special treatmeant, such as Lounge access inside an airport.

Member Activites

Member Activity functionality tracks all member activities inside a Loyalty Management System. These activities are evaluated against the Reward Rules which execute a certain task, such as gaining points. Furthermore they are also used to analyze and change a possible Tier Level for this member.

For each Activity Category, one or many Activity Types can be added. These Types define what transaction is added to the member's account. For example does the Activity Type 'Points' directly add or consume Points from the member's account.

To start creating a new Loyalty Program, the WebUI can be accessed via SAP Standard Business Role: 'LOY_PRO - Loyalty Professional' which provides all the needed functionality. Inside the Loyalty Management Tab, a new Loyalty Program must be created.

1. A Program Type has to be selected which was previously defined in the Customizing and an appropriate ID should be chosen, by which the Program can be identified later.
2. An Employee Responsible needs to be assigned to the Loyalty Program

1. A new Reward Rule Group can be created in the Hierachy Tab by selecting 'New'.
2. For the RR Group an ID has to be chosen and a Type has to be selected
   1. Standard Type --> is used for the creation of simple rules
   2. Standard Type (Expert Mode) - if a rule has been designed within the Expert Mode, this Type cannot be changed later on!
      1. Enables creation of complex rules
      2. Access to rule statement editor to build complex conditions
      3. Access to formula editor to build complex formulas
3. A Combinabilty Type needs to be selected - determines the reward rules when a member qualifies for more than one reward rules!
   1. 1. All Reward Rules within the Group qualify
   2. Maximum Points
      1. The Reward Rule where the member can gain the most points.
   3. 1. The Reward Rule where the member can gain the least points.
   4. By Sequence
      1. The Reward Rules are handled by their set sequence number (1, 2, 3,..)
4. Versioning can be activated for RR Groups which defines during which period this particular setting takes place.
   1. Ability to process multiple versions at the same time
      1. Enables program managers to release new rules for future periods

Loyalty Programs In Marketing

The Reward Rule itself is the same setup as the Reward Rule Group, an ID, the Type and a Sequence has to be chosen. Afterwards, a new Version needs to be created and via the Actions Button, a new Rule can be inserted.

Inside the Rule Builder, a Rule Parameter can be set which defines under which condition this particular rule is applicable and checked. With the underlying New Button, a new Action can be defined which is then beeing executed.

In this scenario the member is receiving 100 Points of Type Super Points if he/she already has 100 Points in his/her Point Account.

To subscribe an Individul Account or Corporate Account to a Loyalty Program, a Membership needs to be created. Inside the Membership all Loyalty relevant Data is beeing stored and 'attached' to the Account. One Account can be part of many Memberships and therefore participate in multiple Loyalty Programs.

Each Membership gets automatically a Point Account assigned where all Transaction are displayed. Points can be added manually or with the previous defined Rules inside the Loyalty Program. Points can be added via a Member Activity. A membery Activity can be created manually from the 'New' Button or with any other integrated transaction software/hardware combination. For this example 50 Points are added two times, which should automatically convert to 200 Points after the Point Account reaches 100 Points due to the former set up Rule.