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Learn to work with Additive discounts

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Main Information

Type: Select whether the discount should be available for selection by agents ('Ad Hoc') or whether it should be provided automatically during billing given that conditions are met ('Auto Apply')

Classification: Select 'subscriptions' to define that the discount is applicable for subscriptions

Applied Service Type: Defines whether auto apply discounts will be applied on 'Usage' , 'Non-Usage' services or both, which in its turn determines which set of criteria must be specified.

Life Cycle State: Only 'Effective' additive discount definitions can be provided and applied.

Discount Settings

  Determines the discount which consists of the discounted amount, the validity of the discount definition, the period during which the discount amount will apply, the number of times the discount can be applied, and the products to be discounted.

Discount

Discount Amount Type: The type of the discount which can be 'Amount', 'Percentage' or 'Free Period'

Range:  On selecting to apply an ad hoc discount, users have the option to define a discount amount, percentage or period within the range provided. For example, if a range of 2-6 months free period is provided, then the agent can select to give the subscription from 2 up to 6 free months. On enabling the 'range' field, in the 'discount' field you must provide a range instead of a single value.

Discount: Either the amount or the percentage value of the discount, depending on the selection of the type.
If the amount type is set to 'Amount' then a UOT must also be defined which determines the frequency that the discount will be deducted from the customer's bills. For example, if the discount is €2 and the UOT is monthly, if the customer is billed for 1 year, then he will get a discount of €24.

If the amount type is set to 'Free Period' then a UOT must also be defined which determines the period for which the subscription will not be charged at all. For example, if the discount is 2 months , if the customer is billed for 1 year, then he will only get billed for 10 months.

Discount Level: If the type is set to 'Percentage' then the discount level is used when more than one discounts with a percentage discount (up to 3) are applicable. The level determines which discount is applied first, following the rules below:

  • The percentage of auto apply discount having the same level is added, and the total discount percentage is applied.
  • Percentage of discounts of a different level is applied in order from lowest to highest.
  • For each level, the discount percentage is applied once the previous discount percentage is applied.

Discounted Products: Used to determine the products that the discount can be applied to. Multiple products or product types can be added to the products criteria list.

Optionally, each defined product or type can be associated with a specific flexible product bundle, as long as the product is a component of a flexible product bundle. This is used to define discounts that will be applied to products only if they are provided as part of a flexible product bundle.

Only termed, usage and expense services are allowed to be added to that list.

Note
titleOnly applicable for Auto Apply Discounts Discounts

Based on the selection of 'Applied on Services' field, different product types will be made available for selection

Applied on Services SettingAvailable Services for selection

Usage Services only

 

  • Usage

Non-usage Services only

 

  • Termed
  • Expenses
Any Service type
  • Usage
  • Termed
  • Expenses
Validity

Determines the fixed effective and expiration dates during which the additive discounts can be offered.

Duration

Determines how long the discount should be applied, once it is added to a subscription. The following options are available:  

  • Effective From: Determines the date on which the discount becomes 'Effective'.
    • Last bill to date
    • Subscription Effective Date
    • Subscription Service Effective Date
    • Subscription Service Rated Up to Date
    • Binding Start Date
    • Agreement Date
    • Billing Term Effective Date
    • Fixed Date
    • Flexible Date (Applicable only for Ad Hoc Type)
    • Buy in Advance Request Start Date (applicable only if Buy In Advance Request criteria are defined)
  • Expires On: Defines the date on which the Discount expires. Not available for Free Period Discounts, whose end date is always set as the Free Period end date.
    • Subscription Service Cancellation Date
    • Binding End Date
    • Billing Term Expiration Date
    • Fixed Date
    • Flexible Date (Applicable only for Ad Hoc Type)
    • Fixed UOT measured in days, weeks, months or years
    • Buy in Advance Request End Date (applicable only if Buy In Advance Request criteria are defined)
Note

The discount will not be applied if the targeted dubscription has 'Null' as the the date defined in the 'Duration / Effective From'. For example, if the Effective From Date is set as the 'Binding Start Date', and one attempts to apply the discount to a subscription that does not have a binding start date then the discount will not be applied.

If, however,  the 'Duration / Expires On' date is Null the discount is offered.

Discount Duration Restrictions: Determines the restrictions applied on the provision of Ad Hoc Discounts if the Flexible Effective Date or Flexible Expiration Date options are enabled. The following restrictions can be defined:

  • Flexible Effective Date Restrictions: Before, after, or between specified dates
  • Flexible Expiration Date Restrictions: Before, after, or between specified dates
  • Minimum Discount Duration: Measured in days, weeks, months or years
  • Maximum Discount Duration: Measured in days, weeks, months or years
Approval SettingsIn case the discount can be selected by agents (ad hoc) and not applied by the system, approval settings is a safeguard against arbitrarily discounting subscriptions.
Enable the approval process by selecting Requires Approval and define the authorised personnel which can be either specific users or departments (units) in Approval Authorizations that will have to give their approval before the job is discounted.

Non Usage Discount Criteria

A list of criteria (not related to Usage Services) that should be met for the discount to be applied (if auto-apply) or made available for selection (if ad-hoc). If criteria from multiple sections and tabs are defined then they must all be met. If multiple criteria from a single tab is defined (e.g. 2 account classifications) then at least criterion must be met.

Billing Term

Billing Term Schemes: If the type of the definition is set to 'ad hoc', then only billing term schemes with a 'Flexible Pricing' Discount Option can be specified.

A list of Billing Frequencies and Binding Periods that must be satisfied for the discount to be applicable.

Concurrent Usage: Defines the threshold of concurrent usage required to be defined on a subscription for the discount to be applicable. Two options which can be combined are available: 'More than' and 'Less than'

Concurrent Usage Rate Percentage: Defines the threshold of concurrent usage percentage to be defined on a subscription for the discount to be applicable. Two options which can be combined are available: 'More than' and 'Less than'

Billing Term Effectiveness: Defines conditions related to the billing term effectiveness that should be satisfied for the discount to be applied. The following options which can be combined are available:

  • Billing Term Effective Date: Before, after, or between specified dates
  • Billing Term Expiration Date: Before, after, or between specified dates
  • Agreement Date: Before, after, or between specified dates
  • Binding Start Date: Before, after, or between specified dates
  • Binding End Date: Before, after, or between specified dates
 Subscription

Subscription Type: A list of subscription types.

Subscription Maturity: If defined, the discount will be applied to subscription that was uninterrupted for a specific period, i.e. not rested or deactivated. A maximum interruption threshold, measured in days, can also be specified.

 Subscription Effectiveness: Defines conditions related to the time that the subscription and/or its services became effective, that should be satisfied for the discount to be applied.

  • Subscription Effective Date: Before, after, or between specified dates
  • Subscription Service Effective Date: Before, after, or between specified dates
Accounts Receivable

A list of accounts receivable Classifications, Payment Preferences , andPresentment Preferences along with additional criteria for each that must be satisfied for the discount to be applicable.
Outstanding Amount: Filters the accounts receivable based on their outstanding amount and a specific due date. The following two options which can be combined are available: 'More than' and 'Less than'

The due date can be specified in one of the following ways: 'Due in X days' or 'Due X days ago'.

The account that will be evaluated is the account associated with the subscription and which will be billed.

Segment

Included in Segment: A list of segments which are used to filter in the jobs that can get the discount.

Excluded Segments: A list of segments which are used to exclude jobs from getting the discount.

You cannot add the same segment to both included and excluded segments, whilst only segments associated to accounts receivable and jobs are available

Price PlanA list of price plans that the subscription should be billed from, for the additive discount to be applied.

Product

A list of products that should exist on the subscription to be discounted. Unlike in other criteria sections, if more than one condition is specified, then all the conditions should be fulfilled for the discount to be applied

Product: A specific product that should be present for the discount to be applied.

Product Type: It determines the type of products that should be present for the discount to be applied.

Belongs in Bundle: Optionally, each defined product or type can be associated with a specific flexible product bundle, as long as the product is a component of a flexible product bundle. This is used to define discounts that will be applied to products only if they are provided as part of a flexible product bundle.

Only termed, usage and expense services are allowed to be added to that list

Buy in Advance Request

Defines a set of duration ranges that are eligible for the additive discount. For each duration range provide From (duration) and To (duration) and the UOT describing the specified duration range, measured in days, weeks, months or years

Usage Discount Criteria

Criteria related to subscriptions with usage services, such as, PPV, VOD, games, or any services that can be measured based on their usage and are provided through Usage Service CataloguesCatalogs
At least one criterion from each section should be fulfilled for the Additive Discount to be applicable.

ServiceDefines a list of Usage Service Catalogs, Usage Service Types, Termed Services that should be related to the rated usage services for the discount to be applicable.
UsageDefines a list of Usage Methods, Devices, Source Categories, Destination Categories that should be related to the rated usage services for the additive discount to be applicable.
Quantitative

Date of Execution (range): Defines a date and time range. The usage of the services that are rated should be done during the specified period for the discounts to be applicable. If nothing is defined in the 'To' field the discount never expires.

Day of Execution: Defines a set of days (Monday to Sunday) and time range for each day. The usage of the services that are rated should be done during those days and period for the discounts to be applicable.

Total Quantity (range per UOT): Defines the total quantity range for each Unit of Time (UOT).  UOT values can be Unlimited or Days, Months and Years. The total number of the usage services that are rated and that were applied within the specified unit of time (counting from the date / time of billing) should fall within the specified range for the discount to be applicable.

Note

The UOT 'Unlimited' option means that the quantity will not be evaluated for a specific period.

Total Usage (range per UOT): Defines the total usage range per UOT. UOT can be Unlimited, days, months and years.The total usage of the usage services that are rated and that were applied to the specified unit of time (counting from the date / time of billing) should fall within the specified range in order for the discount to be applicable

Note

The UOT 'Unlimited' option means that the quantity will not be evaluated for a specific period.

 

Allowed Organisational Units

Only available for Ad Hoc Discounts, define the organisational units that logged in user must belong to so that the discount is available for selection to add on a subscription.

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Main Information

Each Ad Hoc Discount should refer to either a Subscription or a Job.

Life Cycle State: The life cycle state of the Ad Hoc Discount, which can be 'Pending Approval', 'Approved', 'Cancelled'. Only 'Pending Approval' Ad Hoc Discounts can be modified and only 'Approved' Ad Hoc Discounts are applied during Billing Run.

Discount Percentage, Discount Amount, Discount Free period: The discount percentage, amount of free period that the subscription or job will be discounted

Additive Discount Definition: The Additive Discount Definition from where the discount is generated.

Approval Method: The method that was followed to approve the Ad Hoc Discount which follows the setting in the Additive Discount Definition. The approval is set to 'Automatic' when no approval is required and manual when i's required.

Approved By & Approved On: If the life cycle state of the discount is 'Approved' then the user that approved the discount and the date that he did is provided.

Provided By & Provided On: The user that added the discount on the subscription or job and the date that he did

Cancelled By & Cancelled On: If the discount is cancelled (i.e. not approved) then the user that cancelled the discount and the date that he did is provided.

Effective Date & Expiration Date: In case the discount is continuous and not once off then the date on which the discount becomes effective and the date that it expires is provided. The dates aresupplied when the duration on the Definition is set to be a 'Fixed' or 'Flexible' date. Otherwise, the field is empty.

Applicable Products

A list of products that the discount will be applied on. If nothing is specified, then the discount will be or has already been applied on all billed products.  

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Creating and processing additive discounts

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Applied Additive discounts report

Image RemovedApplied Additive DiscountsImage Added

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Additive discounts Business Examples

Subscription related ad hoc discount definition

Panel
nameblue
titleCompany ZX Available Subscription Discounts

Scenario 1

Company ZX requires agents to have access to a selection of discounts to offer customers with serious complaints. These discounts should be monitored, i.e. confirmed by the Customer Centre Supervisor before being applied to the bill of the customer.

The discounts should not exceed €20.00 per month, and they should only be offered to customers up to 3 times a year. Additionally, the discount should only apply to the customer's main service and not to any additional services they are provided.

The discount should only be available until 31/12/2015 as the business reconsiders and revises its business rules on a yearly basis.

 

Solution

  • Set up ad hoc subscription discount definition

    A discount should be set up in the system with the settings and conditions below.  The discount should only affect monthly subscribers, and a separate one should be created for customers with a different billing frequency.

    Amount /Amount RangeValidityDurationNumber of Applied DiscountsApproval SettingsCriteria
    Amount RangeEffectiveExpirationEffective FromExpires Onperiod Billing Term CriteriaProduct Criteria
    5 - 20 / month01/01/201531/12/2015Subscription Service Effective Date

    		Fixed Date: 31/12/2015Specific Number:31 yearManual by Unit: Customer Care managers  Billing Frequency: MonthlyProduct Type: Subscription Packages
  • Add discount on subscription
    Once the discount definition is available, the agent should select and add it to the subscription. The discount amount should be set to €20.00, and the main service should be selected before submitting the discount.
    The agent should then inform the manager that a discount approval is required.
     
  • Approve discount
    The manager should navigate to the Ad Hoc discount, review it and decide whether to approve or cancel it.
    Once the discount is approved the manager should inform the agent.
     
  • Apply discount
    Once the discount is approved, the agent will be able to preview and bill the subscription along with the discount.

Subscription related Auto Apply Discount Definition

Job-related Ad Hoc Discount Definition

Panel
nameblue
titleCompany ZX Available Job Discounts

Scenario 2

Customers are charged an Installation Service fee on all new installations.  These can take up to two working weeks, but sometimes technicians are unable to perform them on time.  Customers can call, make a formal complaint and are eligible for a 50% discount on the installation service fee. These discounts should be monitored, i.e. confirmed by the Customer Centre Supervisor before being applied to the bill of the customer.
The discount should only be available until 31/12/2015, as the business reconsiders and revises its business rules on a yearly basis.

Agents should be able to add the discount on the job before billing the job.  

Solution

  • Set up ad hoc job discount definition

    A discount should be set up in the system with the following settings and conditions:

    Amount /Amount Range ValidityApproval SettingsCriteria
    AmountLevelEffectiveExpiration SegmentsProduct Criteria
    50%101/01/201531/12/2015Manual by Unit: Customer Care managers  Included Segments: Jobs whose actual completion date > expected completion dateProduct: Installation Service Fee
  • Add discount on Job
    Once the discount is created the agent should add it to the job with the delay complaint. The discount will only become available if the actual completion date is greater than the expected date (that was set to 2 weeks from the order date). This will be controlled via the Included Segment criterion.
    The agent should remove any other products included in the table leaving only the Installation Service fee.
     
  • Approve discount
    The manager should navigate to the Ad Hoc discount, review it, and then approve or cancel it.
    Once the discount is approved the manager should inform the agents.
     
  • Apply discount
    Previewing discounts through Bill Preview
    Once the discount is approved, the agent will be able to preview and bill the Job with the 50% discount.

Job-related Auto Apply discount Definition

Panel
nameblue
titleCompany ZX Automatic Job Discounts

Scenario 3

Customers are charged an Installation service fee on all new installations.  These can take up to two working weeks, but sometimes technicians are unable to perform them on time.  Customers can call, make a formal complaint and are eligible for a €20 discount on the installation service fee.
The discount should only be available until 31/12/2015, as the business reconsiders and revises its business rules on a yearly basis.

The discount should be applied on the job automatically, given that the conditions are met.

Solution

  • Set up Auto Apply Job discount Definition
    A discount should be set up in the system with the settings and conditions below.  The discount should only affect monthly subscribers, and a separate one should be created for customers with a different billing frequency.

    Amount /AmountValidityCriteria
    AmountEffectiveExpirationSegmentsProduct Criteria
    €2001/01/201531/12/2015Included Segments: Jobs whose actual completion date > expected completion dateProduct: Installation Service Fee
  • Apply discount
    Once the job is completed and ready for billing, the discount will be applied as long as:
    • the actual completion date was greater than the expected date (that was set to 2 weeks from the order date) 
    • the job is included in the segment
    • The 'Installation Service fee' was added to the job as defined in the 'Product Criteria' of the discount definition

    The agent will be able to view the €20 discount applied on the job via the 'Bill Preview' available via the 'Bill Job' action.

Note
titleNotes
  • If you are using a previous release, view CRM.COM Release Changes.
  • Use the Additive discounts WEB API to create and manage Additive discounts from an external system, such as a customer portal. View the Additive discounts WEB API for a complete list of actions available through the WEB API.

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Glossary  

CRM.COM TermDefinition
SubscriptionA collection of customer services billed on a recurring, usage or one-time basis.
JobA small project initiated by the operator for customers, involving the delivery and billing of services, products and activities. Customer requests and orders, such as that for a new subscription, can be initiated and registered through a job.
Product BundlesA combination of component products offered for sale as one product. Flexible product bundles are those that have a variable selection of constituent products as components, while fixed product bundles have a fixed selection.

 

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