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Process Overview

 

Loyalty management can be integrated into the CRM sales process. A customer can earn points when purchasing products, can earn points by buying points or can redeem points by purchasing reward products.

 

The following shows a earn points process. A sales order is created for the account, that has an active membership for a loyalty program. Inserting the membership ID in the sales order enables loyalty integration and identifies the point types. The sales order generates a member activity for the membership.

 

Prerequisites

 

The whole set up is documented in the following note:

 

1331970 - Loyalty Sales order setup document

 

The following shows some of the main prerequisites.

Sales Order Transaction Type

 

The sales order business transaction type used defines the sales order integration scenario. This is to be set in the following customizing:

 

SAP Customizing Implementation Guide
Customer Relationship Management
Transactions
Basic Settings
Define Transaction Types

 

The field transaction classification defines the sales order integration scenario.

The following values are available.

Product Master Data

 

The product must be set up accordingly so it can be used in the loyalty management integration process. The product must have the points defined for each Sales Order Scenario.

Member Activity Creation

 

The member activity can be created on item or header level. When creating the member activity on item level usually the product master defines the amount of points that is earned by the member.

When creating the member activity on header level the value of the sales order may be used for calculating the points based on any formula.

Both can be combined as well, in that case a member activity is created for the header and for each item in the sales order. The member activity category and type are defined in the following customizing:

 

SAP Customizing Implementation Guide
Customer Relationship Management
Marketing
Loyalty Management
Member Activities
Define Categories and Types for Sales Order Integration

 

This customizing holds the header (maintenance dialog 'Define Header Activity Types') and item activity types (maintenance dialog 'Define Item Activity Types'). Further this customizing defines the time of the execution of the member activity. This is done in the field 'Member Activity Processing Delay'. For certain scenarios the member activity needs to be executed immediately, for others it can be scheduled later on.

 

Consume Points Scenarios

 

The kind of consume points scenario is defined by the mixed payment setting in the following customizing path:

 

SAP Customizing Implementation Guide
Customer Relationship Management
Marketing
Loyalty Management
Channel Integration
Define Mixed Payment for Sales Order Integration

 

Depending on the setting the member can pay with loyalty points and currency in the same sales order. There are the following options to set up mixed payment:

 

  • S Fixed Payment Value for Reward Products
    This option uses the fixed redemption value specified in the product master for buying reward products.
    There are the following payment options:
    • Pay the full price with points.
    • Use fixed mixed payment (non-flexible), by using a combination of redeeming points and using currency in the reward catalog.
      In both alternatives, the fixed value is set in the product master and no flexible choice is possible in the reward catalog.
  • C Flexible Payment Calculation for Reward Products
    This option uses conditions in the product master plus calculations from the IPC for buying reward products.
    There are the following payment options:
    • Pay the full price with points.
    • Pay a partial amount using a calculator function that works out the additional currency payment you have to pay after redeeming a certain amount of points. The member can decide flexibly on the amount of points they want to redeem.After choosing Flexible Payment Calculation for Reward Products, you can determine your point procedures.
  • F Flexible Payment Calculation for Standard Products
    This option uses conversion rates and the Internet Pricing and Configurator (IPC) for buying standard products. There is no separate reward catalog, but only a standard product catalog.
    The member can use points during payment.

 

Sales Order Integration Scenarios

 

Earn Points

 

In the 'earn points' scenario, the customer earns loyalty points by purchasing products.

The amount of points may be taken from the product master data or be calculated by any formula in the member activity.

 

A sales order enabled for the earn scenario needs to be defined as 'A Loyalty Accrual Sales Orders' in the business transaction classification in the sales order transaction type customizing. When creating the sales order for an account, the membership ID needs to be enterned into the sales order header details. The membership creates the reference to the loyalty program. The current points taken from the product master data are displayed in the item list.

On saving of the sales order the member activities are created according to the member activity creation settings. The current scenario generates a member activity for the sales order header and one member activity per item.

The member activities are processed immediately based on the rules in the loyalty program.

The earned points are added to the membership point account. In this scenario the member receives the points from the purchased product, and additionally 10% from the sales order net value as additional points.

Buy Points

 

In the 'buy points' scenario a customer runs short of points to buy a certain product. The 'buy points' scenario is a request to purchase additional points. The sales order is not used to purchase the product but to purchase the loyalty points associated to the product.

A sales order enabled for the buy points scenario needs to be defined as 'B Loyalty Buy Points Sales Orders' in the business transaction classification in the sales order transaction type customizing. When creating the sales order for an account, the membership ID needs to be enterned into the sales order header details. The membership creates the reference to the loyalty program.

 

The member of the loyalty program purchases 20 of the points assigned to the product in the product master data in the BUYPOINTS scenario.

The member activities are created and processed accordingly. Again there is one member activity created for each item, and one for the sales order header.

According to the rules in the loyalty program the member gets the purchased points assigned to the point account as redeemable points. Addionally the 10% of sales order net value are provided as qualifying points.

 

Consume Points

 

The customer uses the earned points to buy products or services. In the 'consume points' scenario the loyalty points are redeemed to pay for the product. Depending on the scenario the customer uses the loyalty points to pay the full price of the products. Technically the customer gets a 100% discount on the product. The invoice for the sales order is created without any amount assigned.

A sales order enabled for the consume points scenario needs to be defined as 'R Loyalty Redemption Sales Orders' in the business transaction classification in the sales order transaction type customizing. When creating the sales order for an account, the membership ID needs to be enterned into the sales order header details. The membership creates the reference to the loyalty program.

 

The following sample sales order is created in the fixed payment scenario, where the member pays the full amount with loyalty points. When creating redeem sales order and adding the item, the points assigned to the product in the product master data in the REDEEM scenario get determined as points spent. The conditions set up provides a 100% discount on the product since this is paid with loyalty points, the net value of the sales order therefore remains as 0,00 EUR.

The points spend are validated against the membership point accounts. Only if the point balance shows sufficient points the sales order can be saved, if the point balance is unsufficient the following error is raised:

Sufficient balance is not available in point account &1 to redeem [CRM_LOYIL_MSG 014]

On saving of the sales order the member activities are created and processed accordingly. Again there is one member activity created for each item, and one for the sales order header.

According to the rules in the loyalty program the member gets the points redeemed. Addionally the 10% of sales order net value are provided as qualifying points - this is valid for a mixed payment scenario. In the current scenario there are no points assigned since there is no net value as the full product is payed with the loyalty points.

 

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