FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person *   Danson Christopher Joseph 2. Date of Event Requiring Statement (Month/Day/Year) 12/17/2004 3. Issuer Name and Ticker or Trading Symbol ELOYALTY CORP [ELOY] (Last) (First) (Middle) 150 FIELD DRIVE, SUITE 250 4. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Vice President, Delivery 5. If Amendment, Date Original Filed(Month/Day/Year) (Street) LAKE FOREST, IL 60045 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Beneficially Owned

1.Title of Security (Instr. 4) 2. Amount of Securities Beneficially Owned (Instr. 4) 3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5) 4. Nature of Indirect Beneficial Ownership (Instr. 5) Common Stock 104,523 D   Common Stock 384 (1) I By spouse

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.			SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Employee Stock Option (right to buy)	  (2)	06/23/2005	Common Stock	404	$ 23.496	D	Â
7% Series B Convertible Preferred Stock	  (3)	  (3)	Common Stock	1,927	$ 5.1	D	Â
Employee Stock Option (right to buy) (1)	  (4)	04/02/2011	Common Stock	90	$ 17.5	I	By spouse
Employee Stock Option (right to buy) (1)	  (5)	05/16/2011	Common Stock	45	$ 18.9	I	By spouse
7% Series B Convertible Preferred Stock (1)	  (3)	  (3)	Common Stock	429	$ 5.1	I	By spouse

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Danson Christopher Joseph 150 FIELD DRIVE, SUITE 250 LAKE FOREST, IL 60045	Â	Â	  Vice President, Delivery	Â

Signatures

Robert S. Wert, Attorney-in-fact		12/27/2004
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	The reporting person disclaims beneficial ownership of these securities, and this report shall not be deemed an admission that the reporting person is the beneficial owner of the securities for purposes of Section 16 or for any other purpose.
(2)	Fully vested and exercisable as of the date of this statement.
(3)	Not Applicable
(4)	Became exercisable in equal increments over 48 months beginning in May 2001.
(5)	Became exercisable in equal increments over 48 months beginning in June 2001.

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