Loyalty Management Best Practise Configuration Guide

Question

Dear all,
we set up Loyalty Management in our Demo-System (CRM 7.0 Level5) as it is described in the SAP CRM Marketing book.
Unfortunately we still have problems with:
- sales order integration
- execution of membership activities
Does anybody has a Best Pracise Configuration Guide for Loyalty Management, I can use as an additional guide beneath the SAP Marketing book to solve these issues and to check all system settings and the customizing?

Answer 1

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Note - 1331970.
Symptom
Loyalty functionality in sales order
Solution
Please read the documentation below Setup for Integration of Sales Order with Loyalty for CRM 7.0 You can use this note to integrate the loyalty application with sales order to allow customers to earn reward points on purchase of products, redeem points and buy point products. To enable the above-mentioned functionality, the following set up has to be carried out in the system: -> Product master data You have to add SetType REWARD_PRO_LOY (created for product type Material) to the product category. You may create a new product category for loyalty products. You can add the settype to a product category using the following steps: 1. Use transaction COMM_HIERARCHY
2. Search for the category to be used for loyalty products
3. In the SetTypes tab under Category Data, add REWARD_PRO_LOY as the settype After the settype is added to the loyalty product category, it will appear as point information assignment block in the product overview page. Here, you can maintain point information for Accrual, Redemption and Buy Points scenarios. You have to select the Scenario, Point Type (Points, Miles etc) and enter the associated number of points. The following three activities are supported: -> Accrual
In this scenario, a customer buys standard products and earns reward points for his purchase. The actual points to be accrued will be maintained at product master data level.  You have to select EARN as the loyalty scenario. Example: We have a product, Laptop T 61, which has 1000 reward points associated with it, at the product master level. If a customer buys this product a member activity will be created and 1000 points will be credited to his account. Note: You can maintain points for a product with a particular loyalty scenario in the point information assignment block of product overview page. -> Redemption
In this scenario, a customer redeems his points to buy products. In CRM 7.0, redemption products have 100% discount and can be bought only by points. The point value of such products will be maintained at product master data level in point information assignment block. You have to select REDEEM as the loyalty scenario. Example: We have a keyboard HT-1010, which has a price of 5000 points (and 100% discount). If a customer buys this product, a member activity will be created and 5000 points will be deducted from the customer's account. -> Buy Points
This functionality enables a customer to purchase points. The point value of such products will be maintained at product master data level under the point Information assignment block. You have to select BUYPOINTS as the loyalty scenario. Note:
Point information is maintained for 1 base unit of product .If the quantity and unit of measure are changed, the points will be calculated accordingly. 
-> Customizing in SPRO You have maintained the following customizing settings in SPRO: 
-> In the customizing activity Define Point Types for Sales-Order Integration, you maintain point types. For more information, see SAP Customizing Implementation guide   Customer Relationship Management  Marketing  Loyalty Management - Design  Channel Integration  Define Point Types for Sales-Order Integration Point Information in product master can be maintained only for these point types. 
-> In the customizing activity Define Categories and Types for Sales Order Integration, you maintain member activity category, activity type, sales order status for which activity will be created and the processing delay ( Process On Hold) for a particular loyalty scenario. For more information, see SAP Customizing Implementation guide  Customer Relationship Management  Marketing  Loyalty Management - Execution  Member Activities  Define Categories and Types for Sales Order Integration 
-> In the customizing activity Define Transaction Types, you maintain the transaction types for accrual, redemption and buy points. For more information, see SAP Customizing Implementation guide  Customer Relationship Management  Transactions  Basic Settings  Define Transaction Types Note:
Reference transaction types LTAA, LTAR and LTAB are delivered for CRM IC and UIU. For web channel, transaction types ISLA, ISLR and ISLB are delivered. You can create new transaction types on project basis but transaction classification should be maintained as A, R and B for accrual, redemption and buy points transactions respectively. For redemption transaction LTAR, the item category is LTAR where the pricing process is maintained as 100% discount. Therefore, the net value will always be 0 for redemption items and only points will be charged. You have to maintain the condition 0R10 in pricing procedure. The pricing procedure 0CRM01 contains the details of condition 0R10. If you do not maintain 100% discount, then additional currency price will be displayed. For example, $200 + 100 MILES. Billing and delivery related customizing has to be done on a project basis. ----------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------- Setup for Integration of Sales Order with Loyalty in EhPx for CRM 7.0 You can use this note to integrate the loyalty application with sales order to allow customers to earn reward points on purchase of products, redeem points and buy point products. To enable the above-mentioned functionality, the following set up has to be carried out in the system: -> Product master data You have to add SetType REWARD_PRO_LOY (created for product type Material) to the product category. You may create a new product category for loyalty products. You can add the SetType to a product category using the following steps: 1. Use transaction COMM_HIERARCHY
2. Search for the category to be used for loyalty products
3. In the SetTypes tab under Category Data, add REWARD_PRO_LOY as the SetType After the SetType is added to the loyalty product category, it will appear as point information assignment block in the product overview page. Here, you can maintain point information for Accrual, Redemption and Buy Points scenarios. You have to select the Scenario, Point Type (Points, Miles etc) and enter the associated number of points. The following three activities are supported: -> Accrual
In this scenario, a customer buys standard products and earns reward points for his purchase. The actual points to be accrued will be maintained at product master data level.  You have to select EARN as the loyalty scenario. Example: We have a product, Laptop T 61, which has 1000 reward points associated with it, at the product master level. If a customer buys this product a member activity will be created and 1000 points will be credited to his account. Note: You can maintain points for a product with a particular loyalty scenario in the point information assignment block of product overview page. This is an optional activity. In many cases, the points accrued will not be maintained in the product master data but will be determined based on reward rules. In such cases, you do not have to maintain the SetType. -> Buy Points
This functionality enables a customer to purchase points. The point value of such products will be maintained at product master data level under the point Information assignment block. You have to select BUYPOINTS as the loyalty scenario. This activity is mandatory for Buy Points scenario. -> Redemption
In this scenario, a customer redeems his points to buy products. In CRM 7.0, redemption products have 100% discount and can be bought only by points. The point value of such products will be maintained at product master data level in point information assignment block. You have to select REDEEM as the loyalty scenario. Example: We have a keyboard HT-1010, which has a price of 5000 points (and 100% discount). If a customer buys this product, a member activity will be created and 5000 points will be deducted from the customer's account. Note:
Point information is maintained for 1 base unit of product .If the quantity and unit of measure are changed, the points will be calculated accordingly. Redemption functionality in Ehp1 for CRM 7.0 In case of redemption, you have three payment options to choose from. You choose the payment option in the customizing activity Define Mixed Payment for Sales Order Integration. For more information, see SAP Customizing Implementation guide   Customer Relationship Management  Marketing   Loyalty Management  Channel Integration  Define Mixed Payment for Sales Order Integration a) Fixed redemption value from Product Master
The point information will be picked from the SetType as explained above and 100% discount will be given at item category level. Attached is the screenshot of the same. Using Pricing Process, you can select whether normal pricing is executed or 100% discount is given. In addition to the above-mentioned setting, a 100% discount condition should be included in the pricing procedure. For this purpose, you can use the standard condition 0R10 in the pricing procedure. b) Mixed redemption using Conditions and IPC With Ehp1 for CRM 7.0, mixed payment functionality is available. This enables a consumer to pay with points and money in a single sales transaction. You can maintain point prices as conditions in product master data under the Prices assignment block. The condition type
0LM1 with condition tables SAP002, 003 and 004 are used to maintain these point conditions as seen in the screenshot below. Select the option '0LM1_LM_SAP002' from the dropdown. Select 0LM1_LM_SAP002 from the dropdown. In the above screenshot, Price in Points = 100% point price , Max Price in Points = maximum points a consumer can spend, Min Price in Points = minimum points a consumer should spend for this product. Note:
In the above scenario, entries in Point Information assignment block will not be considered for redemption but the information will be picked from the conditions. A new usage LM is developed for points as conditions. You can use the customizing activity Condition Technique: Basics to develop condition tables, access sequences, condition types and point procedures.
For more information, see SAP Customizing Implementation guide   Customer Relationship Management  Master Data  Conditions and Condition Technique  Condition Technique: Basics You can create condition objects with application CRM and usage LM. The point procedure 0LM001 is delivered and can be used in a sales transaction using the below the customizing Determine Point Procedures. Point information will be fetched by executing this procedure. For more information, see SAP Customizing Implementation guide   Customer Relationship Management  Marketing  Loyalty Management  Channel Integration  Determine Point Procedures You can assign this point procedure to a particular sales org, distribution channel, division, customer pricing procedure and document pricing procedure the same way it is done with pricing procedure. If you decide to use only points in a sales transaction (consumer has to pay 100% point price always), a standard pricing procedure with 100% discount would suffice. If you want to allow mixed pricing, for example, a consumer can pay anything between 1000 to 2000 points and rest in currency, then condition type 2902 (point based discount) should be included in the pricing procedure and 100% discount should not be chosen at item category level as explained above. The conversion rate between points and currency can be maintained in CRM UI in the following manner:
1. Go to Loyalty Management
2. Select Prices
3. Choose 2900 as the Price Maintenance Group
Attached is the screenshot of the same. Here 1 USD is maintained as 1 point. Product specific conversion rates are also allowed. Condition type 2901 is the reference condition type for 2902 and 2903 (used in flexible order and is described later in the section flexible order). Scales can be maintained for the conversion rates. For example, for the first 1000 Points it is 0.5 USD per point. From 1000 to 2000 points, it is 0.75 USD per point and from 2000 points onwards, it is 1 USD per 1 Point Example of Sales order Here, a product TV-1000 is maintained with Point price as 1000 Miles and Min Point price  as 500 miles and Max point as 1000 Miles. A consumer purchases this product using a redemption transaction and spends 500 points. With a conversion rate of 1 USD equal 1 point, the net value becomes 500 USD + 500 Miles. If consumer spends 1000 Miles, the net value will be 0 USD + 1000 miles. Similarly, various combinations of maximum price and minimum price can be maintained in Product master and accordingly consumer can use his points to redeem products. c) Mixed payment using Flexible order If you do not wish to maintain point prices for individual products due to high volume of products, specifically in retail, then they you select this option where during the checkout, consumer will be given the option to use his points. Discount will be given based on the points spent at an item level. In this case, the only thing you have to maintain is a fixed conversion rate (condition type 2901). The transaction type will be the same as accrual. For example, a consumer purchases a product HT-1000 on which he can earn 1000 special points. During checkout, he will be asked to use his points. Use Point Payment will be enabled, and he can enter points he wants to redeem. If he decides to use 500 points, then a discount will be given to him based on the points spent. Here, with a conversion rate of 1 USD equal to 1 point, 500 USD discount will be given and accrual information will be lost. Hence, the points spent will be equal to 500. Discount Based on Member Basic and Lifetime Tiers In accrual transactions, discounts can be given to members who have reached a particular tier (Basic and Lifetime tiers). This can be maintained as a condition using the following steps:
1. In CRM UI, go to Loyalty Management
2. Select Prices
3. Choose 29MD as the Price Maintenance Group
Here, we can maintain the percentage discount on a product for a particular basic and lifetime tier. The condition type 29MD should be included in the pricing procedure of sales transaction to provide discounts. In sales order processing, you can check the discount under the assignment block Price Totals on the overview page. In this case, a 2% discount is given based on the above condition as shown in the third row) Generation of Billing Documents Once a sales order is created and saved, you can generate a billing document as a follow up activity. For loyalty sales transactions, the following three new fields are added to the billing document.
-> Points
-> Point type
-> Points spent In Accrual and Buy Points scenarios, Points = Points accrued; Point type = Miles, points etc; Points spent = 0 In redemption scenarios, Points = Total point price; Point type = Miles, Points etc; Points spent = points spent by the consumer To generate billing document from a sales order, you have to select a relevant billing option for the item category. In this case, we have selected Transaction-Related Billing According to Order Quantity. The billing will happen via CRM Billing.
Note: Only CRM Billing is currently supported
As billing will happen only if the order is replicated successfully to ERP (where shipping, delivery and logistics will be done), you have to ensure that all the master data, for example, products, BP (sold to party), conditions, etc are present in ERP along with the transaction type and item category (for example, LTAA and LTAN). Once replication is complete, we can create a billing document from the sales order overview page. Select Create Follow-up and choose Billing. -> Customizing in SPRO You have maintained the following customizing settings in SPRO: 
-> In the customizing activity Define Point Types for Sales-Order Integration, you maintain point types. For more information, see SAP Customizing Implementation guide   Customer Relationship Management  Marketing   Loyalty Management  Channel Integration   Define Point Types for Sales-Order Integration Point Information in product master can be maintained only for these point types. 
-> In the customizing activity Define Categories and Types for Sales Order Integration, you maintain member activity category, activity type, sales order status for which activity will be created and the processing delay (Process On Hold) for a particular loyalty scenario. For more information, see SAP Customizing Implementation guide  Customer Relationship Management  Marketing  Loyalty Management  Member Activities  Define Categories and Types for Sales Order Integration 
-> In the customizing activity Define Transaction Types, you maintain the transaction types for accrual, redemption and buy points. For more information, see SAP Customizing Implementation guide  Customer Relationship Management  Transactions  Basic Settings  Define Transaction Types 
Note:
Reference transaction types LTAA, LTAR and LTAB are delivered for CRM IC and UIU. For web channel, transaction types ISLA, ISLR and ISLB are delivered. You can create new transaction types on project basis but transaction classification should be maintained as A, R and B for accrual, redemption and buy points transactions respectively. For redemption transaction LTAR, the item category is LTAR where the pricing process is maintained as 100% discount. Therefore, the net value will always be 0 for redemption items and only points will be charged. You have to maintain the condition 0R10 in pricing procedure. The pricing procedure 0CRM01 contains the details of condition 0R10. If you do not maintain 100% discount, then additional currency price will be displayed. For example, $200 + 100 MILES. Billing and delivery related customizing has to be done on a project basis. -> In the customizing activity Assign Product Hierarchy for Sales Order Integration, you register the product hierarchy if it is not the same as sales operation hierarchy. For more information, see SAP Customizing Implementation guide  Customer Relationship Management  Marketing  Loyalty Management  Channel Integration  Assign Product Hierarchy for Sales Order Integration This customizing will help you create reward rules based on product categories and process them during creation of member activity using sales order. -> In the customizing activity Determine Pricing Procedure, you maintain 29CRLM as the pricing procedure for loyalty transactions. For more information, see SAP Customizing Implementation guide  Customer Relationship Management  Marketing  Business Functions  Pricing  Pricing in the Business Transaction  Determine Pricing Procedure For more information please refer to the attachment and IMG Documentation.