Example of Promotion Calculation Rules

As an example of how these different rules affect promotion calculations, consider a case where a transaction qualifies for four promotions. In this example, Promotion 1 is of the type Always Apply, so accruals generated by this promotion apply regardless of which rule is followed. The promotion calculation rules determine how the other promotions apply. The weighting used by these rules is shown in the following table.

Point Type Qualifying Weight Nonqualifying Weight

Base

1.0

0.5

Bonus

0.8

0.4

The last three columns in the following table show which points the member receives if you use different promotion calculation rules. In addition to Promotion 1, which always applies, the following promotions apply:

  • Maximize by Promotion. Promotion 4 applies, because it has the maximum weighted average for Base points and Bonus points.

  • Maximize by Point Type. Promotion 4 applies for Base points, because it has the maximum weighted value for that type, and Promotion 4 applies for Bonus points, because it has the maximum weighted value for that type. The weighted value is applied separately for the two different point types. Even though Promotion 2 generated 700 NQ Bonus points, these points were not applied, because the 550 Q Bonus points generated by Promotion 4 have a higher weighted value due to the difference in the qualifying and nonqualifying weights.

  • Maximize by Point Type Q/NQ. Promotion 2 and Promotion 4 apply for both Base points and Bonus points. For each point type and qualifying/nonqualifying combination, the one with the maximum weighted value is applied. That is four combinations in this example.

Promo Point Type Amount Weighted Weighted Promo By Promo By Point Type By Point Type Q/NQ

1

Base

250 Q

250.0

390.0 Yes Yes Yes

1

Bonus

350 NQ

140.0

None

Yes Yes Yes

2

Base

225 NQ

112.5

392.5 None None Yes

2

Bonus

700 NQ

280.0

None None None Yes

3

Base

125 NQ

62.5

102.5 None None None

3

Bonus

100 NQ

40.0

None None None None

4

Base

225 Q

225.0

665.0 Yes Yes Yes

4

Bonus

550 Q

440.0

None Yes Yes Yes