Understanding Buy in Advance
- Persia Xenopoulou (Deactivated)
- Former user (Deleted)
- Frini Pouyiouka
- p_demou (Deactivated)
Back to Buy in Advance Main Page
Table of Contents
What is Buy In Advance?
The Buy In Advance feature provides subscribers with the possibility to be billed for a period longer than that of their normally contracted billing frequency or prepaid/pre-rated period, in exchange for a discount.
Billing Frequency applies to Subscriptions with Normal Billing Term Schemes and Prepaid / Pre-rated period applies for Subscriptions with Prepaid Billing Term Schemes.
Buy In Advance can be applied to a Prepaid/Pre-rate subscription from CRM.COM R9.0.0 and onwards
Buy In Advance Glossary
| Term | Description |
|---|---|
| Buy In Advance Request | A request made from customers to be billed for a longer period than that in their contract. |
| Normal Billing - Post Bill | A billing mechanism where customers use the services they subscribed to or were delivered to them and are charged at the end of their billing frequency period. |
| Normal Billing - Pre-Bill | A billing mechanism where customers are billed in advance for the services they subscribed to. |
| Prepaid / Pre-rated Billing | A billing mechanism where customers pay in advance for the services they are subscribed to before starting to use them. The period for which they will be billed in advance is pre-configured in the system for each service individually. |
| Price Plan | A set of rates used to bill an Accounts Receivable based on the transactions that were performed on behalf of the account holder. |
| Auto-Applied Discounts | A mechanism used to automatically provide discounts addition to agreed price plan offers, based on conditions associated with the customer’s Accounts Receivable, their orders and Subscriptions. |
| Ad Hoc Discounts | A mechanism used to provide discounts on an ad hoc basis, following some predefined business rules and restrictions. |
Buy In Advance Key Processes and Concepts
| Processes / Concept | Description |
|---|---|
| Billing Rating process if a Buy In Advance Request exists for a Normal Subscription | If a Buy In Advance Request exists for a Normal Billing term scheme Subscription, then the Normal Billing Run process will consider the duration specified on the request during the calculation of the period to be rated, instead of considering the billing frequency specified on the Subscription’s Billing Terms, unless the billing frequency period is greater than the duration specified on the Buy In Advance Request.
|
Billing Rating process if a Buy In Advance Request exists for a Prepaid Subscription
| If a Buy In Advance Request exists for a Prepaid Billing term scheme Subscription, and there is at least one pre-rated service on this subscription, then the Prepaid Billing Run process will consider the duration specified on the request during the calculation of the period to be rated, instead of considering the pre-rated service period specified on the Subscription’s Billing Terms, unless the billing pre-rated period is greater than the duration specified of the Buy In Advance Request.
AVAILABLE FROM CRM.COM R12.0.0 Buy in Advance Requests can also be submitted on a Prepaid Subscription applied only on specific Pre-Rated Services instead on the whole Subscription. |
| Buy In Advance and Additive Discounts relation | Buy In Advance can be used along with promotional offers, to encourage customers to pay up front for a long period in exchange for a discount. In CRM.COM Additive Discounts can be combined with Buy In Advance, offering the customers either a discount on the total amount or free periods. |
| Placing Buy In Advance Requests in lists | Customers with Buy In Advance Requests can be added to lists (known as 'segments' in CRM.COM). These lists can be used throughout the software in batch processes as conditions, to perform additional functions. For example, lists can be created for all customers with Buy In Advance Requests close to their expiration date, so that they can be notified and suggested a possible renew. This can be effected by including the segment in a Notification Run, using a Communication Template |
Buy In Advance Access & Viewing Controls
Business Network Characteristics define the level of access for each entry. i.e. whether it will be available for selection, viewing or editing
| Entity | Network Characteristics | Description |
|---|---|---|
| Buy In Advance Definitions | Global Viewing Entities | Buy In Advance Definitions have no access restrictions. They can be viewed and selected by all users. |
| Buy In Advance Requests | Implicit Viewing Access Entities | Buy In Advance Requests can be accessed viewed and modified by users that belong to the Group defined at the Owned By Group of the related Subscription, or that belong to a group that collaborates with the specified group or by Super Users |
Buy In Advance Related Modules
| Entity | Interaction of Buy In Advance with the Entity |
|---|---|
| Rated Billing Items | Buy In Advance is included and rated by the Rated Billing Item |
| Additive Discounts | Define the discounted price, via Additive Discounts, based on the Buy In Advance period |
| Subscriptions | Request Buy In Advance for a Subscription |
| Segmentation | Segments can be created based on Buy In Advance Requests |
Buy In Advance - Business Examples
The following section provides business examples of how the CRM.COM Buy In Advance module is used.
Annual Buy In Advance Offer
Business Requirement
Aluxsat Co. as part of its Winback strategy, offers three months free to customers willing to be billed for a whole year up front. The offer is only available to customers that have subscribed to Subscription Type: Gold
CRM.COM solution
- Buy In Advance Definition Set up
Configure the definition with the following settings:Duration: From 12 months - To 12 months
Duration From Duration To UOT Conditions 12 12 MONTHS Subscription Type: GOLD
Additive Discounts Definitions
Configure an Auto Apply Definition with the following settings:Type Classification Amount /Free Period Validity Duration Number of Applied Discounts Criteria Free Period Effective Expiration Effective From Buy In Advance Auto Apply Subscription 3 months 01/01/2015 01/01/2020 Agreement Date Once From: 12 To: 12 UOT: Months
- User Processes
- User should navigate to Subscriptions Data Entry page
- Action: SUBMIT Buy In Advance REQUEST
Provide the following information:
Duration UOT Billing Effective Date 12 months Last Rated Date of the subscription Submit the Request
- View the Request at View Subscription History page
- Use action: BILL SUBSCRIBER
- Bill from Last Rated Date
- Submit the action
Result: The system will bill the Subscription for a year, offering the three first months for free.
Application of Buy In Advance Requests During Billing
Find some examples below, of how the System will react to the Buy In Advance Request Start Date and the Subscriptions Billable Period Dates
- Example 1
- Subscription will be billed from 01/01/16 to 01/02/16
- Buy In Advance Request exists from 01/02/16 to 01/04/16
- Subscription will be billed starting from 01/01/16 up to 01/04/16
- Example 2
- Subscription will be billed from 01/01/16 to 01/02/16
- Buy In Advance Request exists from 30/01/16 to 30/03/16
- Subscription will be billed starting from 01/01/16 up to 30/03/16
- Example 3
- Subscription will be billed from 01/01/16 to 01/02/16
- Buy In Advance Request exists from 02/02/16 to 02/04/16
- Subscription will be billed starting from 01/01/16 up to 01/02/16
- Example 3
- Subscription will be billed from 01/01/16 to 01/04/16
- Buy In Advance Request exists from 01/02/16 to 01/04/16
- Subscription will be billed starting from 01/01/16 up to 01/04/16
- Buy In Advance Request will be ignored