Example of a Reward Points Loyalty Volume Discount
In this example, IDI Telecom has created a Loyalty Reward Program to reward customers for their continued business.
The Loyalty Reward Program gives their customers five reward points when they have been customers for 0-6 months, and 10 reward points for more than six months. Each reward point earned is worth $0.01 when used as tender for a POS purchase or bill payment.
The Reward Point Conversion Rate was set up as shown here.
The pertinent Volume Discount Wizard screens were configured as follows:
Discount Type | Reward Points |
Loyalty Type |
|
Amount Type | Constant Amount |
Tier Units | Months |
Tier Type | Single |
Single Tier | First tier
|
Reward Point Expiration |
|
The customer account was established eight months ago. At billing time, the rewards discount results in a reward of 10 points being added to the existing balance.
This account has been billed eight times, no points have expired, and the customer has not used any points for tendering.
A review of the customer account on the Balances tab, after selecting Reward Points from the list, shows a balance of 50 points which is worth $.50.
(6 months x 5 points) + (2 months x 10 points) = 50 Reward Points
50 Reward Points x $.01 conversion rate = $.50
The customer can visit a POS location and use these points towards a POS purchase or tendering of a bill payment. To convert the points and apply them to the transaction, the associate much choose the tender type whose base tender type is Reward Cash.