Business Description
This use case involves a "private sale" of an XM Brand 72 inch Hi Def TV. This is an example of a discretionary promotion (and reward) based on a customer's membership level.
•For ARTS CLUB ELITE MEMBERS (the highest level) - Buy the XM Brand 72 inch Hi Def TV, get a $250 instant rebate, get a free wall mounting kit (a $99.99 value), and earn 5000 ARTS CLUB Points (which are added to your membership club balance;
•For ARTS CLUB GOLD MEMBERS Buy the XM Brand 72 inch Hi Def TV, get a $150 instant rebate, earn 2000 ARTS CLUB Points;
•For ARTS CLUB SILVER MEMBERS Buy the XM Brand 72 inch Hi Def TV, get a $75 instant rebate, earn 1000 ARTS CLUB Points;
•For all other ARTS CLUB MEMBERS Buy the XM Brand 72 inch Hi Def TV, get a $50 instant rebate, earn 500 ARTS CLUB Points;
•Limit of one reward per transaction and one reward per ARTS CLUB member;
•This special deal starts October 16, 2016 and runs through October 22, 2016;
•This use case generates nine distinct rewards. The nine rewards are consolidated into four RewardGroup instances as follows:
❖USE_CASE_5_ELITE_MEMBER - consolidates the $250 instant rebate, free wall mounting and 5,000 ARTS CLUB Points rewards;
❖USE_CASE_5_GOLD_MEMBER - consolidates the $150 instant rebate and 2,000 ARTS CLUB Points rewards;
❖USE_CASE_5_SILVER_MEMBER - consolidates the $75 instant rebate and 1,000 ARTS CLUB Points rewards;
❖USE_CASE_5_MEMBER - consolidates the $50 instant rebate and 500 ARTS CLUB Points rewards; and
•Because of the one reward constraint the use cases listed here are mutually exclusive and in the worked example require four separate and distinct retail transactions.
Assumptions
•The customer must be an active ARTS CLUB member;
•The promotion is limited to a specific item - the XM Brand 72 inch Hi Def TV;
•There is a limit of one reward per ARTS CLUB member and one reward per program. Other use cases involve transaction-level limits -- this one represents a customer level limit;
•For this scenario, the level referred to is represented as a membership level which is captured in the CustomerMembershipProgramLevel entity type;
•The instant rebates are sponsored by XM Brand and will be be billed back to them; and
•The free wall mounting kit will be treated as a point of sale markdown. Here it is assumed that ARTS CLUB is sponsoring this part of the reward.
Eligibility
The following conditions must be satisfied within a RetailTransaction to derive the rewards in this scenario:
•The customer must be and ARTS CLUB member;
•The RewardDerivationRule applied will vary depending on the level of membership in ARTS CLUB; and
•The SaleReturnLineItem must specify an XM Brand 72 inch Hi Def TV item (SKU XM72HDTV).
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Derivation
This use case requires nine distinct RewardDerivationRule instances because of the diverse nature of the rewards offered. This use case involves three distinct types of reward derivation:
•Instant rebates which are expressed as monetary values and vary by membership level;
•For ELITE level members a free gift (which requires the creation of a separate SaleReturnLineItem with a 100% RetailPriceModifier to make it "free");
•Deferred reward points that are added to CustomerMembershipProgramAccount balances.
The RewardGroup entity which is referenced by each RewardDerivationRule establishes their association for generating the appropriate RetailTransactionLineItem subtypes.
Disposition
This use case involves a fairly complex disposition treatment because it combines a number of different benefit types that include instant rebates, a free item and membership points. As a result it will end up creating the following disposition entity types:
•CustomerRewardLineItem to capture earned points;
•CustomerRewardRebateLineItem to capture instant rebate value ; and
•For ELITE level members a RetailPriceModifier (and an additional SaleReturnLineItem for the free wall mounting kit).
Accounting Disposition
This use case combines a brand (or supplier) bill back and a point of sale markdown in one RetailTransaction. Additionally, it includes a CustomerRewardLineItem to capture and post the earned points to ARTS CLUB CustomerMembershipProgramAccount balance.
Worked Entity Attribute Value Example
The next figure presents filled in entities. The values are made up examples designed to show how the reward scenario rules will be stored in the ARTS ODM entities.
Figure 50 - Use Case 5 - Multi-customer Membership Tier Discretionary Promotion
