SAP CRM Marketing- Loyalty Management

As of SAP CRM 7.0, under CRM Marketing, a new big module is introduced, SAP CRM Loyalty Management, from planning of loyalty programs, through management of memberships and loyalty points, and processing of member activities, to customer self-service in the CRM Web Channel.

Loyalty Management can be applied to multiple industries, where customer 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 FFP(Frequent Flyer Programs), Rewards programs, or bonus programs, and target their most loyal customers with customized offers.

These programs promote customer participation with points/reward programs where certain amounts of points are earned for a specific customer behavior. In turn, customers can redeem these points for specified rewards.

End customers have access to self-service web sites to check and manage their points/reward accounts and to redeem points for rewards, or may choose to access these actions via the company's call center.



SAP CRM Loyalty Management Capabilities

Key functions of Loyalty Management consist of four building blocks:


<Overview of SAP Loyalty Management>
<Overview of SAP Loyalty Management>

   Loyalty Program Management

Loyalty Program Management

We can design our loyalty program to support our organization's strategy and objectives. Members of our loyalty program can earn and redeem loyalty points by doing defined member activities.

Tier Management

Design different Tier Levels based on characteristics of the member's interactions, such as sales values, frequently etc. SAP CRM Loyalty management supports Multiple tier groups. Each group can have some tier level such as Regular, Silver, Gold, Platinum. The Tier can have validity. And we can define rules to model the tier dependencies.

Points Management

Point is to used to earned and spent by the participants (members) in a Loyalty Program. Usually one program have one point type, however we can have multiple point types for some most valuable customers.

Tier Based Point Expiration


Program Partners Management


Dynamic Attributes


   Reward Rule Management

Reward Rule Management Overview

Use SAP CRM Rule Builder to model the program rules to calculate the points. For example,

1>Airline, Frequent Flyer Program: Redeemable miles, First Class=150%, Business Class=125%, Economy Class= Discount * 100%.

2>Promotion: Earn double points for all the notebooks purchased from July to Sept 2009 online or in our stores.

Robust Rule Modeling


Version Management


Template & Expert Mode Maintenance


Rule Scheduling


Partner Sponsorship


Campaign Integration


   Membership Management

Loyalty Membership represents the participation of an individual person/account in a loyalty program. Membership is done 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.

Membership Types and Registration


Member Tier Management


Member Activities


Member Profile Maintenance


Point Account Management


Basic Membership Card Handling



   Processing Engine

The Processing Engine is a highly scalable engine to process activities and tier transition evaluation. This is the heart of the CRM-Based Loyalty Management solution.

Scalable Engine Component- Deployment

SAP CRM Loyalty Management is a performance optimized solution built for mass processing, because usually the customers have lots of members.

CRM Loyalty Component can be installed in the same instance as BBPCRM( CRM Key Application Server), or as an alternative running in a totally separate instance.

Online Member Activity Processing


Batch Member Activity Processing


Tier Evaluation Processing


Point Expiration Processing


Simulation of Rule Processing



Loyalty API Connectivity


Sales Order Integration


Interaction Center Integration


Web Channel Integration



   Loyalty Management- Industry Solutions

Loyalty Management for Retails


Loyalty Management for Travel & Transportation



   Related Topics


Please feel free to contact us for deploying the latest SAP CRM Loyalty Management. Thank you.

Last Updated@September 2009