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Bidding for a Redemption Product

Members can bid for a redemption product using their accrued points. Loyalty programs might set up the bidding to promote products, or to promote a new partner or a partner's new product. The member that places the highest bid within the stipulated time period gets the redemption product.

Setting up a bid is done outside of Siebel Loyalty, in a third-party product. For a bid, Siebel Loyalty takes the price to be charged as an input and charges the member that amount in points, or points plus pay. A bid transaction has to have the Bid flag in the transaction record set to Y (Yes) to indicate that it is a bid transaction.

Siebel Loyalty does not issue a loan nor does it perform a points-to-pay conversion for a bid transaction.

NOTE:  A bid transaction only occurs through third-party UIs, that is, through Loyalty Web Services. If multiple transactions are involved in a redemption request, then either all or none of the transactions are bid transactions.

Redemption Scenario for a Bid

In this scenario of redemption process for a bid, members of a loyalty program bid for a product available in a bidding promotion. The third-party system needs to store the various bids submitted within the stipulated time period. The highest bid is then selected and sent to Siebel Order Management and Loyalty to create an order and redemption transaction.

1. The member selects the bid product.

   The member logs on to the loyalty program Web site to participate in the bid promotion and selects the redemption product.

2. The member submits the bid price.

   The member completes the terms and conditions of the bid (minimum bid price, number of bids which can be submitted by a member, bid submission period, and so on), and submits a bid price.

3. The third-party system stores the bid price.

   The third-party system stores the various bids submitted by the members.

4. The third-party system runs the bid selection process:

   After the last date for a bid submission, the third-party system runs a selection process which compares the various bids and selects the highest bid.

5. The third-party system creates a quotation.

   The third-party system passes the highest bid to Siebel Order Management to create a quotation. In the bidding process, the third-party system sends the parameters to Siebel Order Management, that includes the program name, product, partner, membership ID, redemption price in points (or points plus pay), and so on.

6. The third-party system gets the member's acceptance.

   The third-party system can display and send the quotation to the member for acceptance (if taxes are applicable). If directed by the terms and conditions of the bid, then it directly calls the Loyalty business service to do a credit check.

7. Siebel Loyalty performs a credit check.

   Siebel Loyalty performs a credit check to ascertain the member account having sufficient point balance.

8. Siebel Order Management creates the order and redemption transaction.

   Siebel Loyalty calls Siebel Order Management to create an order. After it generates the order, Siebel Order Management calls the Loyalty business service to create a redemption transaction. Based on the bid product, Siebel Loyalty determines whether to ship a product, send a voucher, or dispatch an air redemption ticket. For more information on order processing and order management, see Siebel Order Management Guide.