Siebel Loyalty Administration Guide > Setting Up Siebel Loyalty Redemptions > Points-To-Pay Conversion >

About Redemption with Conversion Pricing

The general steps for redemption with conversion pricing is as follows:

1. The member selects an itinerary or product.
2. The loyalty program obtains the redemption price options.
3. The member selects the price option.
4. The loyalty program provides a recalculated price option.
5. The member accepts this price option.
6. Siebel Order Management creates a quote for member acceptance.
7. Siebel Order Management creates the order and redemption transaction.

Step 4 is the unique step in this process. The details of Step 4 are described in About Converting Points to Pay.

About Converting Points to Pay

To convert points to pay, the Siebel Loyalty's points to pay process completes the following steps:

1. Checks whether the member's point balance is sufficient.

   Once the member selects one of the price options, Siebel Loyalty calls the Convert Points to Pay business service. The business service checks the member's credit and determines whether the member has a sufficient points balance. There are different process flows depending upon the credit check result. If the member has a sufficient point balance, then Siebel Loyalty proceeds to call Siebel Order Management to create a quote.

2. Checks the loan setup for the member tier.

   If the member's point balance is less than the points component of the redemption price, then Siebel Loyalty checks whether there is a loan setup for the member's tier and for the point type in the redemption price.

3. Calculates the extent of the loan.

   If there is a loan setup, then based on the setup (minimum or maximum of percentage of current balance, or an absolute value), the process calculates the extent of loan.

4. Checks if the maximum loan is sufficient for the redemption.

   After calculating the extent of the loan, Siebel Loyalty checks whether the maximum loan limit is sufficient. If the required loan is within the maximum loan limit, then Siebel Loyalty creates an automatic loan (accrual transaction) with the loan equal to the difference between the redemption price in points and the member's point balance. It takes the price option selected by the member forward to the create quote process.

5. Checks the points-to-pay conversion.

   If there is no loan setup for the member tier or point type, or the loan required is more than the maximum loan limit, then Siebel Loyalty checks whether a points- to-pay conversion must be performed.

   The points-to-pay conversion pricing is optional for loyalty programs. To enable points-to-pay conversion, you need to check the points-to-pay field at the loyalty program level. Siebel Loyalty determines whether it is required to convert points to pay based on this field as well as the set of conditions described in About Points-To-Pay Conversion. The most basic of these conditions is that the member does not have a sufficient balance even after considering the eligible loan to that member.

6. Identifies the pricing line.

   Siebel Loyalty identifies the points pricing line setup in Admin - Products, used for calculating the price option selected by the member.

7. Checks the cost-per-point setup.

   Siebel Loyalty checks whether the cost per point option is set up in the identified points pricing line.

8. Calculates the pay component:
   • If one product is being redeemed for a given point type, then Siebel Loyalty calculates the difference between the redemption price and the member's point balance and multiplies that with the cost per point to get the pay component.
   • If more than one product is being redeemed, then where payment occurs in the same point type, the total shortfall in points for that point type is prorated across the different price lines in proportion to the contribution of each price line to the total points. After the shortfall is prorated across the different price lines, Siebel Loyalty performs a points-to-pay conversion for each price line according to the cost per point defined for that price line.

     For example, assume there are three price lines in the Point type Regular with price options as follows:

     • 200 Regular (price line 1)
     • 300 Regular (price line 2)
     • 500 Regular (price line 3)

       In this example, the total price in points required for payment is 1000 Regular points. Now if the member's point balance for that point type is 600 points, and the eligible loan is insufficient to cover the shortfall of 400, then Loyalty converts the 400 point shortfall as follows:

     • 200/1000 times 400 equals 80
     • 300/1000 times 400 equals 120
     • 500/1000 times 400 equals 200

       Siebel Loyalty uses the conversion factor defined in each of the price lines to convert 80, 120, and 200 points to their currency equivalents. The total value to be paid in currency for the redemption request is the sum of these three currency components.

   • If there are multiple price lines and multiple point types, then:
     • The points-to-pay conversion is done for a point type only if the conversion currency (the final currency to which to convert) is the same for all price lines involving that point type.
     • If there are price lines in multiple point types and there are multiple point types requiring points-to-pay conversion, then the conversion currency has to be the same for all point types.

       If either of these conditions are not satisfied, then Siebel Loyalty reports an error condition.

9. Returns the new price option:

   The business service returns the new price option for the member to accept. After the member accepts the price option, the business service calls Siebel Order Management to create a quote.