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Common Types of Reward Promotions


There are a number of different types of reward promotions. Some common types are:

  • Simple Promotions. These promotions reward members for a single purchase. For example, if they fly from SFO to BOS in August 2003, then they earn 1000 bonus points if they are a Platinum member or 500 bonus points if they are not a Platinum member.
  • Frequency Promotions. These promotions reward members for multiple purchases of the same type. For example, if they fly from SFO to BOS in August 2003 three times, then they earn 3000 bonus points, if they fly four or five times, then they earn 4000 bonus points, or if they fly more than five times, then they earn 5000 bonus points.
  • Complex Promotions. These promotions reward members for multiple purchases of different types. These are often run with partners to encourage members to buy both the company's and the partner's products. For example, if members stay at a specific hotel and rent a car from a specific car rental company, then they get 5000 bonus points.
  • Action-Based Bonuses. These promotions reward members for some action other than a purchase. For example, if they update their member profile, then they get 500 bonus points, or if they register with your reward program, then they get 2000 bonus points. Either of these examples would only be given to a member once.
  • Partner Promotions. These promotions reward members' activity with partner companies, and the partner's point block is debited to give the customers points. For example, an airline has hotel companies as its partners, and it runs a promotion giving bonuses for renting hotel rooms.
  • Roundtrip Promotions. These promotions reward members for completing a round-trip flight.
  • Joint Accrual Promotions. These promotions reward corporations for the activities of their employees, such as business travel with the host or its partners. The beneficiary can be only the employee, only the corporation, or both, depending on the accrual type of the corporate account. The prerequisite for this feature is to define the employee's relationship with the corporation. Promotions can be set up to calculate the points for the employee and the corporation. The employee and corporation can be rewarded in same point type or in different point types.
  • Accrual Package Promotions. These promotions are similar to joint accrual promotions, in that a member earns a bonus for making purchases from multiple partners, but they have the additional ability to split debit points for the bonus among all the partners involved in the promotion, in a specified ratio. For example, if a member flies with a specific airline and stays in specific hotels and rents a car from a specific company, all within a specific time period, then they get 5000 additional points, and these points are debited to each partner in accordance with the ratio specified.

    For prepaid partners, separate accrual items are created for each partner's share of the points and points are debited from the partner's point block. For post-paid partners, Siebel Loyalty does not split debit points among partners for accrual package promotions. You can, however, create a custom report to show each post-paid partner's share of the debit points, then manually debit each partner's point balance appropriately.

  • Order Level Promotions. These promotions reward members for multiple purchases made in a single order. For example, if members buy a camera and a lens in the same order, then they receive a 5% discount.

All of these types of promotions can be created using the same framework of rules, criteria, and actions. For examples of how to create several types of promotions, see Loyalty Promotion Examples.

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