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Overview
Additive Discounts are used to discount jobs and subscriptions. They generate automatic discounts when certain predefined conditions related to the customers' accounts receivable, subscriptions and jobs are met (auto-apply discounts) or selected by the agents creating the subscription or job (ad-hoc discounts). Additive discounts are applied in addition to the rates offered to customers through their selected price plan.
Major features
Auto Apply discounts are applied automatically on a subscription or a job, provided that certain criteria are met. The decision is made at the time of the billing and the agents have no authority in the application or choice of the discount.
Ad Hoc discounts can be selected by agents and applied on a Subscription or a Job provided the Additive Discounts Definition criteria are being met. Ad Hoc discounts are more secure than auto apply discounts as it can be define whether a discount requires approval, which can be handled by management personnel before billing takes place.
- Additive discounts can be used to discount both the normal and prepaid subscriptions as well as jobs.
- Additive discounts provide a discount on top of any rates granted to customers through their selected price plan. i.e. If a Subscription is being billed using a conditional price plan with a special rate and the conditions for an additive discount are also met, both forms of discount will be applied.
- Multiple additive discounts (amounts and percentages) can be applied to a Job or Subscription simultaneously, provided that the conditions of each discount are met.
Setting Up Additive Discounts
Business definitions
Additive Discount Definitions is a module that enables the user to set up discounts that can be applied on subscriptions and jobs. The discounts can either be automatically applied during billing (Auto-Apply Discounts) or can be selected and added on subscriptions and jobs by users (Ad Hoc Discounts).
Whether you are setting up a discount definition for subscriptions or jobs the same configuration entity is used, and when the classification is set to either job or subscription the remaining fields are loaded accordingly. For the purpose of the manual we provide 2 different tables with the field explanation.
Definition fields for job discounts
The table describes the sections of Job related Additive Discount Definitions Data Entry page, and explains how the fields in the page are used Mandatory
Configurable
| Main Information | |
|---|---|
Classification: Select 'Jobs' to define that the discount is applicable for jobs Life Cycle State: Only 'Effective' additive discount definitions can be provided and applied. | |
Discount Settings Determines discount related settings such as discounted amount, the validity of the discount, and the products to be discounted. | |
Discount Amount Type: The type of the discount which can be 'Percentage' or 'Amount'. Range: On selecting to apply an ad hoc discount, users have the option to define a discount amount or percentage within the range provided Discount: Either the amount or the percentage value of the discount, depending on the selection of the type 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:
Discounted Products: Used to determine the products that the additive discount can be applied to. Multiple products or product types can be added to the products criteria list. Only one-time services, expenses and physical goods (traceable and non-traceable) are allowed to be added to the list. | |
Determine the fixed effective and expiration dates during which the additive discounts can be offered. | |
| Approval Settings | In 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. |
Discount Criteria A list of criteria 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 |
Concurrent Usage: Defines the threshold of concurrent usage required to be defined on a job 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 job 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:
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| Job |
Job Effectiveness: Defines conditions related with the period that the job was initiated and expected to be completed, that should be satisfied for the discount to be applied.
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| Accounts Receivable | A list of accounts receivable 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 job 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 Plan | A list of price plans that the job should be billed from, for the additive discount to be applied. |
Product | Defines the products that should exist on the job for the discount to be applicable. If more than one condition is specified, then all the conditions should be fulfilled for the discount to be applied
Only one-time, expense services and physical goods (Traceable and Non-Traceable) are allowed to be added. |
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 Job. | |
Definition fields for subscription discounts
The table describes the sections of Subscription related Additive Discount Definitions Data Entry page, and explains how the fields in the page are used
Mandatory
Configurable
| Main Information | |||||||||
|---|---|---|---|---|---|---|---|---|---|
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 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 '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:
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. Only applicable for Auto Apply Discounts Discounts Based on the selection of 'Applied on Services' field, different product types will be made available for selection
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Determines the fixed effective and expiration dates during which the additive discounts can be offered. | |||||||||
Determines how long the discount should be applied, once it is added to a subscription. The following options are available:
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:
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| Approval Settings | In 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 |
A list of 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:
| ||||||||
| Subscription |
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.
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| Accounts Receivable | A list of accounts receivable 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 | ||||||||
| A 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
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 | ||||||||
| 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 Catalogs | |||||||||
| Service | Defines a list of | ||||||||
| Usage | Defines a list of | ||||||||
| 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. 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 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. | |||||||||
Related configuration areas
The following modules are related to additive discounts and can be configured for the discounts module to operate at its full capacity or must be configured for additive discounts to work properly.
| Module Link | Area | Description | |
|---|---|---|---|
| Billing Term Schemes | Billing Term Schemes must have the field Discount Option set to 'Flexible Pricing' in order for the discounts to be applied. | Mandatory | |
| Buy in Advance | Buy in Advance Definitions | Configure Buy in Advance Definitions which will be used as criteria for setting up Subscription discounts. | Optional |
Using Additive Discounts
Discounts applied automatically (Auto-apply) are only visible in the system after the billing run is completed. They are not visible via the Manage Ad Hoc Discounts page. Discounts that are selected by agents (Ad Hoc) can be viewed, edited, cancelled and approved from a dedicated screen and can also be viewed by viewed at the Subscriptions and Jobs Data Entry pages. Once an ad hoc or auto apply discount is included in the billing run and applied to a job or a subscription, it is labelled as 'Applied' and becomes available from the Jobs and Subscriptions Summary and Data Entry pages as well as the Rated Billing Items Summary and Data Entry pages.
The table below displays the availability of discounts in CRM.COM pages.
| Discount Type | Description | Subscription Summary Page | Subscription Data Entry Page | Jobs Summary Page | Jobs Data Entry Page | Rated Billing Items Summary Page | Rated Billing Items Data Entry Page | Manage Ad Hoc Discounts |
|---|---|---|---|---|---|---|---|---|
| Ad Hoc Discounts | Requests created for Ad Hoc Discounts | Not available | View Subscription History | Not available | Not available | Not available | ||
| Applied Ad Hoc Discounts | Ad Hoc Discounts that have been applied | Billing Information > Bill Items > Lines > Rated Billing Items > Applied Ad Hoc Discounts (View) | View Subscription History
| Billing Information > Bill Items > Lines > Rated Billing Items > Applied Ad Hoc Discounts (View) | Not available | Applied Ad Hoc Discounts (View) | Applied Ad Hoc Discounts Tab | Not available |
| Applied Auto Apply Discounts | Auto Apply Discounts that have been applied | Billing Information > Bill Items > Lines > Rated Billing Items > Applied Auto Apply Discounts (View) | View Subscription History | Billing Information > Bill Items > Lines > Rated Billing Items > Applied Auto Apply Discounts (View) | Not available | Applied Auto Apply Discounts (View) | Applied Auto Apply Discounts Tab | Not available |
Ad hoc discount fields
This table contains an explanation of the sections of the Ad Hoc Discounts Data Entry page, a description of the usage of its fields and additional information.
Creating and processing additive discounts
Actions are subject to validations which take place before an action is initiated (prerequisite) or after it is submitted (postcondition).
Discounting a subscription using ad hoc discounts
- Navigate to Subscriptions and go to the Data Entry page of the subscription you want to discount
From the Action Panel click on Subscription Related Actions > PROVIDE AD HOC DISCOUNT to open the Ad Hoc Discount modal.
Discount Definition
From the drop down list select the discount to apply.
Click on View Ad Hoc Discount Definitions to access the Discount Definition Data Entry Page and review discount detailsIf a range has been defined in the Discount Definition, then one of the following discounts must be defined:
Minimum Allowed and Maximum Allowed values are provided via the Tool Tip.- Discount Amount to be applied
OR - Discount Percentage to be applied
OR - Free Period
- Discount Amount to be applied
Applicable Dates
Applicable From
- Applicable ToThe dates will be Read-only unless a Flexible Date option has been defined in the Definition.If dates for the application of the Discount must be selected, the allowed dates will be made available as a tooltip.
Apply On
Select whether the discount should be applied to all applicable products (as defined in the Discounted Products of the Definition) or to Specific Products to be selected by the agent
Discounted Products (Available only if the 'Specific Products' option is selected)
Select the Products that should be discounted by adding a check in the checkbox
The discount will only be applied to the products that are defined in the Discounted Products of the Additive Discount Definition even if more are selected
- Click on SUBMIT
Additional Information
Prerequisites | The life cycle state of the subscription is not 'Regretted or 'Cancelled' The billing term scheme of the subscription allows 'Flexible Pricing' |
|---|
Discounting a job using ad hoc discounts
- Navigate to Jobs and go to the Data Entry page of the job you want to
From the Action Panel click on Action > Prove Ad Hoc Discount to open the Ad Hoc Discount modal.
Discount DefinItion
From the drop down select the Discount to apply.
Click on View Ad Hoc Discount Definitions to access the Discount Definition Data Entry Page and review discount detailsIf a range has been defined in the Discount Definition, then one of the following discounts must be defined:
Minimum Allowed and Allowed Maximum values are provided.- Discount Amount to be applied
OR - Discount Percentage to be applied
- Discount Amount to be applied
Apply On
Select whether the discount should be applied to all applicable products (as defined in the Discounted Products of the Definition) or to Specific Products to be selected by the agent
Discounted Products (Available only if the 'Specific Products' option is selected)
- Select the Products that should be discounted by adding a check in the checkbox
The discount will only be applied to the products that are defined in the Discounted Products of the Additive Discount Definition even if more are selected
- Select the Products that should be discounted by adding a check in the checkbox
- Click on SUBMIT
Additional Information
Prerequisites | The life cycle state of the job is 'Draft' , 'Pending' or 'In progress' The job has not been billed yet The job type is defined as billable The billing term scheme of the job allows 'Flexible Pricing' |
|---|
Modifying an ad hoc discount
Use EDIT from the Actions Menu to enter edit mode and update discounts that have not yet been approved. The fields that can be updated are the following:
- Provided By
- Provided On
- Discount
- Amount
- Free Period
- Percentage
Additional Information
Prerequisites | The life cycle state of the discount is 'Pending Approval' |
|---|
Approving an ad hoc discount
Once an ad hoc discount is selected it will be approved automatically or require approval, depending on the configuration of the discount definition. Approvals safeguard against arbitrary usage of discounts by agents, as no discount is taken into consideration by billing unless it is approved.
If approval is required, then specific users or users that belong to specific departments (Units) are allowed to proceed with the approvals. The life cycle state of an ad hoc discount denotes whether approval is required as it is set to 'Pending Approval'. To approve an ad hoc discount:
- Navigate to ad hoc discounts data entry page
- From the Actions Menu click on Actions > Approve
Additional Information
Prerequisites | Only users or users that belong to a unit defined in the Approval Settings of the Discount Definition can approve the discount |
|---|
Cancelling an ad hoc discount
Cancelled ad hoc discounts are not taken into consideration by billing even if they have already been approved. The cancellation of the Ad Hoc Discount must be done before billing the entity, for the discount not to be applied. To cancel an ad hoc discount click on Actions > Cancel from the Actions Menu
Additional Information
Prerequisites | The life cycle state of the discount is 'Pending Approval' or is 'Approved' |
|---|---|
| Postconditions | The discount has not been considered by the Billing Engine yet |
Applying multiple discounts
Multiple discounts (amounts and percentages) can be applied to a job or subscription simultaneously, provided that the conditions of each discount are met. When a subscription is benefiting from a discount in the form of a Free Period, other discounts are ignored.
Multiple discounted amounts are aggregated and deducted from the total amount billed. If the discounts are calculated using percentages, the system allows the user define a level which will determine the order in which each discount will be applied, as this will have an effect on the total amount of discount.
Up to three levels can be defined when creating the Definition for Ad Hoc percentage Discounts.
- The percentages of additive discounts of the same level are added, and the total discount percentage is applied.
- Percentages of discounts of different levels are applied in order, from lowest to highest.
- The discount percentage is applied for each level after the previous discount percentage is applied.
- Only three discount levels are supported (1,2,3).
Additive Discounts Analytics
Reports
Additive discounts information can be extracted in a structured format for analysis by using reports. The discounts included in the report are the ones that discounted subscriptions or jobs. The Additive discounts included in the report are selected and grouped based on user defined criteria. The user can select the fields displayed in the report.
Refer to Reports for information on their use.
Applied Additive discounts report
Additive discounts Business Examples
Subscription related ad hoc discount definition
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 Range Validity Duration Number of Applied Discounts Approval Settings Criteria Amount Range Effective Expiration Effective From Expires On period Billing Term Criteria Product Criteria 5 - 20 / month 01/01/2015 31/12/2015 Subscription Service Effective Date Fixed Date: 31/12/2015 Specific Number:3 1 year Manual by Unit: Customer Care managers Billing Frequency: Monthly Product 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
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 Validity Approval Settings Criteria Amount Level Effective Expiration Segments Product Criteria 50% 1 01/01/2015 31/12/2015 Manual by Unit: Customer Care managers Included Segments: Jobs whose actual completion date > expected completion date Product: 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
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 /Amount Validity Criteria Amount Effective Expiration Segments Product Criteria €20 01/01/2015 31/12/2015 Included Segments: Jobs whose actual completion date > expected completion date Product: 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.
Notes
- 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.
Glossary
| CRM.COM Term | Definition |
|---|---|
| Subscription | A collection of customer services billed on a recurring, usage or one-time basis. |
| Job | A 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 Bundles | A 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. |