Understanding Additive Discounts
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What are Additive Discounts?
Additive Discounts is a concept used to generate discounts when certain predefined conditions related to the customers' Accounts Receivable, Subscriptions and Jobs are met. They can be applied automatically by the System during Billing or explicitly by agents. Additive Discounts are applied in addition to the rates offered to customers through their selected Price Plan.
Additive Discounts Glossary
| Term | Description |
|---|---|
| Discount | A deduction of a certain amount from a Bill. The deduction is specified as an amount of money, a percentage of the total cost, or a period provided for free. Discounts can be applied on Subscriptions and Jobs. |
| Auto-Apply Discounts | Discounts provided automatically in addition to agreed Price Plan Offers, based on conditions related to the customers' Accounts Receivables, Orders and Subscriptions. |
| Ad Hoc Discounts | Discounts provided on an ad hoc basis, following predefined business rules and restrictions. Not all Ad Hoc Discounts are granted (applied) as those requiring approval before their application on the Job, or the Subscription can be rejected. |
| Applied Discounts | Ad Hoc or Auto-Apply Discounts that have been taken into consideration by the Billing Engine and have been applied on Bills created for Subscriptions and Jobs. |
Additive Discounts Key Processes and Concepts
| Processes / Concept | Description |
|---|---|
Auto Apply & Ad Hoc | There are two types of Additive Discounts. One type is automatically applied on the Subscription/Job, and the other is available for the users to select and optionally add to the Subscription/Job. Auto Apply Discounts Auto Apply Discounts are applied automatically on a Subscription or a Job, provided that certain criteria defined in the Additive Discounts Definition are met. The decision is made at the time of the Billing Run. The agents have no authority in the application or choice of the discount. Ad Hoc Discounts 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. Administrators can define whether a discount requires approval (at the Definition level). |
| Additive - Provided on Top of Other Discounts | 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. |
| Defining Levels in Additive Discounts | Multiple Additive 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.
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Additive Discounts 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 |
|---|---|---|
| Additive Discount Definitions | A Discount Definition can be added to a Job or a Subscription, provided the user selecting it belongs to one of the Allowed Organisational Units (AOU) defined in the Discount Definition, or a collaboration exists between their unit and the AOU of the Discount Definition, or is a Super User. | |
| Provided Ad Hoc Discounts | Ad Hoc Discounts entries can be accessed viewed and modified by users that belong to the Group defined at the Owned By Group of the related Job or Subscription, or that belong to a group that collaborates with the specified group, or by Super Users. | |
Applied Additive Discounts These can either be Ad Hoc or Auto Apply
| Applied Additive Discounts records can be accessed viewed and modified by users that belong to the Group defined at the Owned By Group of the related Job, or Subscription, or that belong to a group that collaborates with the specified group, or by Super Users. |
Additive Discounts Related Modules
| Entity | Interaction of Additive Discounts with the Entity |
|---|---|
| Rated Billing Items | Rated Billing Items include any Additive Discounts affecting the rated period. |
| Subscriptions | Ad Hoc and Auto Apply Discounts are applied on Subscriptions. |
| Jobs | Ad Hoc and Auto Apply Discounts are applied on Jobs. |
| Buy in Advance | Additive Discounts can be defined in combination with Buy In Advance Requests. |
Additive Discounts - Business Examples
The following section provides business examples of how the CRM.COM Additive Discounts module is used.
Subscription related Ad Hoc Discount Definition
Business Requirement
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.
CRM.COM 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
Managing Ad Hoc Discount
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.
View Managing Ad Hoc Discount for more information.
Subscription related Auto Apply Discount Definition
Job-related Ad Hoc Discount Definition
Business Requirement
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 Jobs before billing the Jobs.
CRM.COM 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.
View Managing Ad Hoc Discount for more information.
Job-related Auto Apply Discount Definition
Business Requirement
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.
CRM.COM 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
Previewing Discounts through Bill Preview
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.