In today’s competitive business landscape, building strong customer loyalty is more important than ever. A well-designed loyalty program can significantly increase customer retention, encourage repeat business, and enhance lifetime value.
In this blog post, we’ll explore how loyalty programs work and the key benefits they offer to both businesses and customers.
Siebel Loyalty programs are designed to incentivize and reward customer engagement through various transactional and behavioral activities.
Here’s an overview of how these programs work:
- Earning Points: Members accumulate points based on several criteria, such as:
- Tier Status: Higher-tier members may earn points at an accelerated rate.
- Total Spending: The more a member spends, the more points they earn.
- Tenure: Longer membership duration can lead to additional points.
- Transaction Type: Different types of transactions may yield varying points.
- Timing and Location: Points can also be influenced by when and where transactions occur, encouraging purchases during specific times or at particular locations.
- Point Redemption: The points earned act as a form of currency that members can exchange for various rewards, such as:
- Products: Physical items that can be redeemed through the program.
- Services: Access to services offered by the organization or its partners.
- Vouchers: These can include lounge access or discounts for future purchases.
- Event Passes: Free entry to events, enhancing the member experience.
Overall, Siebel Loyalty programs aim to foster customer loyalty by rewarding engagement and incentivizing continued patronage.
Loyalty Point Types
Members/Customers receive points under the Loyalty Program as per their transactions and behaviour. Points are categorized into:
- Qualifying Points:
- Offer event passes and enhance the member experience.
- Count towards tier status but aren’t redeemable.
- Offer indirect long-term benefits to members.
- Help members progress to higher tiers, unlocking associated rewards.
- Do not expire but may reset upon tier change.
- Immediately available upon earning.
- Deducted only in case of transaction cancellation.
- Non-transferable between members.
- Lifetime Points:
- Track total points earned throughout a member’s program tenure.
- Have no expiration or effectiveness associated.
- Not redeemable for products or services.
- Non-transferable between members.
- Deducted only in case of transaction cancellation.
- Non-Qualifying Points:
- Redeemable for rewards and do not affect tier status.
- Effectiveness can be configured at the promotion level depending on factors, such as assignment date, effectiveness date, and point expiry.
- May have varying expiry dates; set during point type and promotion creation.
- Transferable between members in the same program.
- Deducted while redeeming a product or service, or at the time of point expiration.
- Deducted in case of transaction cancellation.
- Used for redeeming rewards from the catalogue.
Benefits of Loyalty Points
Businesses leverage loyalty points as a strategic mechanism to encourage customers to engage in recurring transactions. With every purchase, customers are presented with the opportunity to accumulate reward points. This reward system offers multiple advantages, which includes:
Tier Movement
In the loyalty program’s structured hierarchy, members can access various rewards, priority services, and enhanced points multipliers. Advancing through these tiers is a sought-after achievement for participants. The qualifying points earned are crucial in determining a member’s progression through the tiers.
Redemption of Products or Services
Every loyalty program features a redemption catalogue listing services and products available for point redemption. Members can utilize non-qualifying points from their earnings to redeem items from this catalogue.
During redemption, Siebel Loyalty prioritizes expiring points to ensure members maximize their benefits.
Transferring Points as a Gift
Loyalty points can be transferred from one member to another within the program using non-qualifying points exclusively.
Donating Points to Charity
Loyalty points can be contributed to charity events organized by the loyalty program, with non-qualifying points serving as donations for such occasions.
For more information on Siebel Loyalty:
- Siebel CRM Blog: https://blogs.oracle.com/siebelcrm/
- Siebel Loyalty Product documentation: https://www.oracle.com/documentation/siebel-crm-libraries.html