R9 - Understanding Subscriptions

What does this section cover?

What are Subscriptions?

Subscriptions are collections of services which are provided to a customer and charged either on a termed, usage or one time basis as denoted by the definition of each service. The subscription is always related to an account and the owner of that account is considered the owner of the subscription as well (i.e. the subscriber).

Subscriptions Glossary

TermDescription
SubscriberA customer that is receiving and is charged for the subscribed services.

Behavior Code

A behavior code denotes the type of behavior of an action that will be applied on subscriptions, such as addition of subscription service, removal of subscription service, addition of installed items etc.

Business Classification

A business classification code classifies the applied behavior into different categories and therefore giving a business meaning to the change that was applied and enabling additional process automation in the software such as billing, validations etc.

Unsettled Subscriptions

Unsettled subscriptions are the subscriptions related to accounts receivable with any amount in debt

Settled Subscriptions

Settled subscriptions are the subscriptions related to accounts receivable with no amount in debt

Terminated Subscriptions

Terminated subscriptions are the subscriptions that are no longer considered billable, that is, they are excluded by the billing engine as they were Regretted, Cancelled or Expired.

Effective Subscriptions

Effective Subscriptions are the subscriptions having services which are active, provisioned to the subscribers and charged by the billing engine.

Physical Goods

 A physical good is a tangible commodity which is offered to customers, such as cameras, decoders, magazines etc. In most of the cases the customer has an exclusive ownership of the good that was purchased. Physical goods can be traceable or not traceable.

Services

A service is an intangible commodity which is offered to customers, such as telephony, TV channels, repairs, installations, deliveries etc. In most of the cases the customer does not have an exclusive ownership of the service that was purchased but rather benefits from the service outcome. Services can be one off or recurring

Usage services

Services that are provided upon customer request and are billed on a recurring basis, based on their usage

Termed services

Services that are provided continuously and billed on a recurring basis, regardless of their usage

ExpensesServices that are provided just once, usually upon customer request, and are billed just once by the billing engine
Subscription LocationSubscription Location is the physical location of the subscriber who is actually receiving the subscribed services. Subscription Location consists of all defined contact information address attributes, and can be any contact information address that belongs to the related Account Receivable’s owner OR bill to contact. If no subscription location is specified, then the system defaults to the owner’s address of type Home as the subscription location, if the owner is a physical person, or the owner’s address of type business , if the owner is a company.
Event-based Billing PolicyAn Event-based Billing Policy is a billing policy which is automatically applied on a subscription once an event occurs and considering a set of conditions that should be fulfilled.
EventAn event is a set of subscription actions (set of behavior and classification codes) that can be applied on a subscription either on subscription, or subscription service or subscription installed item level.

Subscriptions Key Processes and Concepts

Processes / ConceptDescription
Using Subscription Distributors

Subscription Distributors (also known as Subscription Provisioning Distributors) are mandatory for an effective subscription, however they are neither services nor hardware.
Distributors are used to:  

  • Relate subscription services and subscription hardware to a specific Provisioning Provider, as CRM.COM offers integration with multiple Provisioning Providers.
  • Define what services will be available from which device, if more than one device are available on a single subscription.
    For example if you would like to offer your customers the option to have more than one device on a single subscription, and then distribute different services on each device, then it is through the distributor that you would control, which services will be available from which device.

CRM.COM allows you to define discounted prices on services that will be provisioned via additional distributors
For more information visit /wiki/spaces/V4Manual/pages/9831566 

Provisioning Distributors can be created via one of the Provisioning Providers modules and must be added in the allowed distributors of a subscription type in order to be made available for selection, and are added on the Subscription when adding services and installed items to the subscription.

CRM.COM also allows you to use the same installed items (for example your box) for multiple providers.
In the case where you manage single subscriptions from multiple providers. For example Provider X will be used to provision the subscription with TV channels while Provider Y will be used for provisioning OTT services.
For more information visit Adding Single Installed Item to Multiple Distributors 

Subscription Action Behaviour Code

Subscription Action Business Classification Code

Each Subscription Action has a behaviour code and a business classification code

  • A behaviour code denotes the type of behaviour that will be applied on subscriptions, such as addition of subscription service, removal of subscription service, addition of installed items etc.
  • business classification code classifies the applied behaviour into different categories and therefore giving a business meaning to the change that was applied and enabling additional process automation in the software such as billing, validations etc.

For example the business classification codes that could be set on a subscription action having a behaviour code removal of subscription service, would be:

  • undo addition of subscription service
  • regret subscription service
  • cancel subscription service. 

Business classification code can be specified either by the user or the system.

Subscription Action Types & Subscription Sub- Action Types 

Subscription action types and subscription sub action types provide the ability to set up different rules around subscription actions having the same behavior and business classification codes. Each subscription action type is related to a behavior code and consists of one or multiple subscription sub action types. Each subscription sub action type is related to a business classification code. Both subscription action types and subscription sub action types are configurable, and multiple subscription action types or subscription sub action types can be mapped to each behavior code or business classification code respectively.

Subscription action types and subscription sub action types are not mandatory in order to create and execute a subscription action. The behavior of the subscription actions depends entirely on the behavior and business classification codes; the subscription action types and subscription sub action types are taken into consideration only if they exist. Subscription action types and sub action types become mandatory only if the selected behavior code or business classification code are overridden by subscription action type or subscription sub action type configuration.

Concurrent Usage

Subscriptions can be used for home usage or public usage. CRM.COM allows you to create a single subscription for public usage, for example used in restaurants or hotels, and bill the subscriber based on the number of concurrent usage of the services and a rate percentage which is agreed between the customer and the company providing those services.

The final rate is calculated based on the following formula

  • Price Plan Rate * Number of concurrent Usage * Rate percentage amount / 100

Concurrent usage based pricing can be used only if it is supported by the related billing term scheme. In that case, both attributes are mandatory.

Subscription Life Cycle State & Subscription Service Life Cycle State

Subscription Life Cycle State History

A subscription life cycle state history determines the state of the subscription for a specific period of time.

  • This information is used for reporting or troubleshooting purposes, but most importantly to determine if the subscription should be billed or not.
  • No overlapping periods can exist for each subscription.
  • An open period, representing the current state of the subscription, should always exist.

Subscription Service Life Cycle State History

A subscription service life cycle state history determines the state of the subscription service for that specific period of time.

  • This information is used for reporting, troubleshooting but mostly for billing purposes. 
  • Subscription service life cycle states history keep any required information based on which the related subscription services will be billed such as:
    • The period for which the service was in a specific state and whether this period is billable or not. 
  • In order to bill a subscription service’s period, the history record will keep additional information such as:
  • No overlapping periods can exist for each subscription service state. 
  • An open period, representing the current state of the subscription service, should always exist.

Automatically charging subscriptions based on specific events

AVAILABLE FROM CRM.COM R9.0.0

 

There are cases where you would like to charge your subscribers automatically based on certain changes they would like to have on their subscriptions. For example you might want to charge a start up fee as soon as a new subscription is created, or charge the subscriber on the request of swapping his installed item for the installation expenses. Such charging can be automatically done by configuring them in the system, by providing what needs to be charged, on which event and in addition providing conditions so you can limit (if required) the occasions on which it will be applied.  

Subscriptions Network Characteristics

Network Characteristics define the level of access for each record. i.e. Whether it will be available for selection, for viewing or editing etc.

EntityNetwork Characteristics
Subscriptions
Subscription Types
Subscription Access Type

 

Subscriptions Related Modules

Interaction EntityHow
Contact InformationSubscriptions are related to a contact
Accounts ReceivableSubscriptions belong to Accounts Receivable.
WalletsPrepaid Subscriptions are related to Wallets.
ProductsServices and Physical Goods added on a Subscription are first created as Products
Installed ItemsInstalled Items are added on the Subscription (Moved out of warehouses)
Conditional AccessThe provisioning provider that is responsible to send the activation/deactivation signals
BillingBilling Engine is responsible for the Billing of Subscriptions
Buy in AdvanceBuy in Advance requests can be created against subscriptions
Additive DiscountsAdditive Discounts can be created against subscriptions
Usage Service CatalogsInclude Usage service information, that can be added on Subscriptions
CommunicationsSubscriptions can automatically sent communications
JobsSubscriptions can be ordered and created via Jobs

 

Subscriptions - Business Examples

The following section provides business examples to help you understand how CRM.COM Subscriptions module is used.

Creating Draft and Effective Subscriptions

Draft Versus Effective Subscriptions

Business Requirement

Company ZX has 2 ways for creating new subscriptions. Via Retailer Shops, from where customers will receive all the required equipment and will be able to start using their subscription directly and the ones that are made via the Call Centre. In this case an installation order is placed and when the installers are the customer's residence they activate the subscription via their company phones.


CRM.COM Solution

Retailer Shop Subscriptions

When subscriptions are made at a Retailer Shop then the action "Become Subscriber" will be used. All the details of the new customer will be added, and requested services and hardware equipment will be registered at once in the system.

Subscription action will be normally submitted. Once the action is submitted the subscription will become effective and as soon as the customers plugs in the equipment he will be able to receive signals on his TV

Call Centre Subscriptions

When subscriptions are registered at the Call Centre then the action "Become Subscriber" will be used. All the details of the new customer will be added, and requested services will be registered at once in the system.

Subscription action will be submitted as Draft. The Subscription and Subscription services will remain in the system as Draft.
When the installer visits the customer's residence then he will pass in the system the Serial Numbers of the installed items that are added by using action Add Installed Item and then activate the subscription using action Activate Subscription. The installer will be able to do this by sending predefined messages integrated with CRM.COM via WEB APIs.

More Information on Become Subscriber action can be found at: Become Subscriber


Reactivating Subscribers

Using "Re-Activate Subscribers" Batch Process

Business Requirement

Company ZX would like to reactivate disconnected subscribers that have settled their outstanding balance. This process is executed once a day in the afternoon as soon as the Call Centre is closed. As the number of subscriptions may be too large, the reactivations are done per area.


CRM.COM Solution

In order to meet the above requirement a Reactivation batch process will need to be configured in the system and scheduled to be executed every morning with one hour difference between them. The reactivation will be done per area.

See below the full configuration

Egersville Reactivation

Conditions ParametersScheduling Information
Subscription TypesHours since Balance Change:  When:Recurrence Settings
Egersville Sub Type1 hrN/ARecurrenceEvery day at 17:00 (See screenshot)

 

Georgsville Reactivation

Conditions ParametersScheduling Information
Subscription TypesHours since Balance Change: When:Recurrence Settings
Georgesville Sub Type1 hrN/ARecurrenceEvery day at 20:00 (See screenshot)

 

 

More Information on Reactivations action can be found at: Using Activate Settled Subscriptions Run Definitions

Deactivating Subscribers

Using "Deactivate Subscribers" Process

Business Requirement

Company ZX runs deactivations once a month. Subscribers that are 10 days past their due date and the amount owed is greater than 10 then, they will be disconnected. Deactivations should be split over the first week of the month with 1000 subscriptions being deactivated every time, starting at 5 o clock in the morning

In addition there exists another process that will deactivate all subscriptions regardless of the debt amount. These subscriptions are the ones that the account in which they belong in has a bad Credit Rating.


CRM.COM Solution

2 Deactivation processes will need to be configured in the system and scheduled to be executed once a month.

Normal Deactivation

ConditionsParametersScheduling Information
Account BalanceDue X days AgoStart Again AfterBatch SizeAs Of DateWhenRecurrence Settings
10101 day1000First Day of the executionRecurrence1st Monday of every month (See screenshot below)

 

Bad Creditors Deactivation Run

ConditionsParametersScheduling Information
Accounts Receivable Credit RatingDue X days AgoStart Again AfterBatch SizeAs Of DateWhenRecurrence Settings
CAA10N/AN/AN/ARecurrence1st Monday of every month

More Information on Deactivations action can be found at: Using Deactivate Unsettled Subscriptions Run Definitions


Executing Scheduled Actions

Executing Scheduled actions according to Behavior code

Business Requirement

Company ZX would like to execute its scheduled actions in batches based on the action type. For example would first like to execute all actions apart from activation/deactivation (i.e. Add Installed Items and Services) and then proceed with all the actions related to activation.

The execution should be done on a daily basis after midnight.


CRM.COM Solution

In order to meet the above requirement 2 batch processes will need to be configured in the system. These processes will be scheduled to run every night after 00:00.

The process with the (not activation actions) will be scheduled first and the Activation/Deactivation process will be scheduled for an hour later.

See below the full configuration

All Actions (Apart Activation/Deactivation)

Conditions Scheduling Information
Subscription Types

Behavior Codes


 

WhenRecurrence Settings
N/AAll Behavior Codes for non Activation /Deactivation actionsRecurrence
  1. Every day at 00:05

 



Activation/Deactivation actions

Conditions Scheduling Information
Subscription Types

Behavior Codes


 

WhenRecurrence Settings
N/A All behavior Codes of Activation/Deactivation actionsRecurrence
  1. Every day at 01:05

 

 

More Information on Scheduled Actions Run can be found at: Using Execute Scheduled Subscription Actions Run Definitions

Taking Subscriptions out of Resting

Using "Taking Subscriptions out of Resting" Batch Process

Business Requirement

Company ZX would like to deactivate subscribers that are about to come out of resting, given that they do not meet activation condition criteria, at midnight. This process is executed once a day right after midnight. As the number of subscriptions may be too large, the reactivations are done per area.


CRM.COM Solution

In order to meet the above requirement a "Take Subscriptions Out of Resting" batch process will need to be configured in the system and scheduled to be executed right after midnight with one hour difference between them. The deactivation will be done per area.

See below the full configuration

Egersville Reactivation

ConditionsParametersScheduling Information
Subscription Types WhenRecurrence Settings
Egersville Sub TypeN/ARecurrenceEvery day at 00:10 (See screenshot)

 

Georgsville Reactivation

ConditionsScheduling Information
Subscription TypesWhenRecurrence Settings
Georgesville Sub TypeRecurrenceEvery day at 01:10 (See screenshot)

 

 

More Information on Taking Subscriptions out of Resting can be found at: Using Take Subscriptions out of Short Term Deactivation Run Definitions

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