Exploring SAP Customer Loyalty Management solution

Objective

After completing this lesson, you will be able to explore SAP Customer Loyalty Management solution.​

SAP Customer Loyalty Management

Advanced Loyalty Programs Require Connections Across the Business

This image shows different bubbles representing different solutions that connect with loyalty, such as financial or e-commerce systems.

They need to:

  • Ingest data from a variety of customer touchpoints - like marketing, service, and purchase engagements - in order to determine a customer’s loyalty and status.
  • House a wide variety of promotions and offers.
  • Use complex decisioning to decide what offer should be given to the customer at what time and in what channel.
  • Integrate those offers into channels where the customer is interacting.
  • Feed loyalty data back into financial systems to understand the ROI of the programs.

Powerful Insights Meet Meaningful Experiences, Earning Lasting Customer Loyalty.

This image shows the SAP Customer Loyalty Management dashboard and a list of some important capabilities to its left.

This new solution helps brands build loyalty as a business and empowers companies to achieve their complex use cases and goals.

SAP’s differentiators with this solution include:

  • A "CRM" type of approach. Customer data and the "loyalty profile" are the center of our solution. By building these profiles that ingest data from across the business, we can truly understand a customer’s preferences, intentions and what loyalty offers will resonate most.
  • A "one stop shop" for loyalty management. Enterprises will often manage various loyalty programs – associated with different owned brands, geographies, or customer segments. The SAP solution will allow loyalty managers to view, orchestrate, and see analytics for all of their programs in one place. Additionally, because the new solution integrates directly with SAP ERP, loyalty managers can see the quantifiable results and ROI of their loyalty initiatives and report those directly back to finance – dissuading the notion that loyalty programs are only cost centers.
  • The ability to manage loyalty coalitions and alliances in one place. As customer expectations have moved more toward "experiential" offers (rather than just points and coupons), they have seen the need to develop loyalty programs in partnership with other brands. The orchestration and assets associated with these cross-brand campaigns can now be handled in one platform.
  • And finally, because the new loyalty solution is part of our suite-first approach, our customers can leverage native integrations with their finance, marketing, sales, commerce and service channels, ensuring that loyalty programs are built on consistent, robust data sets and that promotions can be delivered in the channels most meaningful to the customer – without the need for expensive implementation and integrations services. And because of native integrations with SAP ERP, loyalty programs are now a measurable part of a brand’s growth engine.

Earn the Loyalty of Customers, Delivering Experiential Journeys That are Relevant and Rewarding.

This image shows three benefits of using SAP Customer Loyalty Management and explains these in more detail.

With SAP Customer Loyalty Management, you can earn the loyalty of your customers by delivering experiential journeys that are relevant and rewarding.

And here are the reasons to believe:

  • First get to know your customers deeply. SAP Customer Loyalty Management delivers comprehensive customer wallets that house information collected through loyalty programs, commerce sites, marketing segmentation, and more. With this data in hand, in conjunction with the full power of the SAP Business Suite, brands can design personalized offers that are meaningful and experiential.
  • Spark connections to foster lifelong customer relationships. To emphasize – "Loyalty isn’t just points, it’s a sense of belonging". With capabilities to build meaningful global brand programs and extend brand presence through partner alliances, SAP Customer Loyalty Management provides the ability to create and deliver relevant experiences that culminate in customer advocacy.
  • And finally, quantify tangible value and prove loyalty fuels business success. Financial accountability ensures loyalty isn’t just a cost but a catalyst for strategic growth. The connectivity of the solution helps tie loyalty program performance to identify business benefits so companies can confidently invest in what works.

Get to Know Your customers Deeply

This screenshot shows the Missions tab in SAP Customer Loyalty Management together with a note that 40% of customer don't feel brands understand them as people.

SAP Customer Loyalty Management brings together diverse customer data from many sources into one place. It assembles data from SAP and non-SAP systems, such as points of sale, marketing segmentation, existing loyalty programs, e-commerce sites, and puts it all into a unique, cloud-based customer wallet.

The customer wallet acts as a loyalty profile for basket analysis to understand the motivations of individual customers, as well as enhance segmentation and targeted marketing processes.

With this solution, loyalty program managers can quickly understand customer behavior, preferences, and propensities. They can design optimal loyalty programs, deciding which offers to make to which customers, when, and through what channels. Then they can collect feedback data to analyze performance and fine-tune program design.

This screenshot shows the Identity tab of a customer in SAP Customer Loyalty Management.

SAP Customer Loyalty Management brings together diverse customer data from many sources into one place. It assembles data from SAP and non-SAP systems, such as point-of-sale systems, marketing segmentation, existing loyalty programs, and e-commerce sites, and puts it all into a unique, cloud-based customer wallet.

The customer wallet acts as a loyalty profile for basket analysis to understand the motivations of individual customers, as well as enhance segmentation and targeted marketing processes. With this solution, loyalty program managers can quickly understand customer behavior, preferences, and propensities. They can design optimal loyalty programs, deciding which offers to make to which customers, when, and through what channels. Then they can collect feedback data to analyze performance and fine-tune program design.

Foster Lifelong Customer Relationships

This screenshot shows the Always-on-Promotions tab in SAP Customer Loyalty Management with a note on how different generations view loyalty.

When it comes to loyalty, while scale is important, one size does not fit all. SAP Customer Loyalty Management gives your organization the flexibility you need to offer personalized experiences across diverse programs—including alliances with other brands—from a single place.

  • Offer variety at scale with governance and accountability.
  • Manage loyalty programs for different geographical locations, each with its own regulations.
  • Encompass all your brands.
  • Operate whatever type of programs (points-based, cash-based, or experiential) suit particular market demands and customer preferences.
  • Avoid using different providers for each program and run them all centrally using the same data.

The solution also helps you extend your brand reach through loyalty alliances with non-competing brands that have a similar customer profile. Overall, it helps you reward existing customers, reach new ones, strengthen your brands, and accelerate revenue growth.

Prove the Financial Benefit of Your Programs

This shows a screenshot of the Overview tab under Journeys in SAP Customer Loyalty Management.

SAP Customer Loyalty Management allows you to measure the performance of your loyalty programs in financial terms and show that they are delivering profitable growth for the business. You can also use the fine-grained insights this solution yields for operational purposes to understand what’s working, what’s not, and how to optimize your programs.

Native integrations with SAP Cloud ERP, SAP Business Data Cloud, and other SAP Business Suite offerings allow you to automate key processes, such as settlements with sales teams or alliance partners. You can also analyze and report on return on investment using data from finance and ERP systems in the format and language that your finance colleagues will recognize and trust.

By demonstrating complete accountability, you can change the way loyalty is perceived in the C-suite, from a cost center to an engine of profitable growth. Our solution helps you prove to the board that loyalty programs run according to best practices create strategic business value.

SAP Powers Intelligent, Sustainable Enterprises with Suite Qualities

This figure shows a representation of the SAP Business Suite, with a box to the right listing major benefits.

SAP has evolved and promises suite qualities across its apps:

  • Best-of-suite with best-of-breed capabilities
  • 14,100+ retailers operating in 156 countries are innovating with SAP solutions
  • Over €365B GMV transacted on Commerce Cloud in 224
  • Over 2.2B Customer engagements on Black Friday on SAP Emarsys

Summary

  • There are different ways customers can be loyal to a brand and how loyalty trends are changing. Some customers are loyal because they truly love a brand, while others stay loyal because of rewards, shared values, or brand associations.
  • Loyalty based only on discounts is becoming less effective. Customers now decide how they want to engage with brands, which means businesses must adapt their loyalty strategies.
  • Successful companies use loyalty as a long-term growth strategy by moving beyond simple promotions and building smarter, more connected loyalty programs that deliver real value to both customers and the business.