This document will review how campaign points are calculated, considering other point ratios that may be implemented in the loyalty program.
Total Points
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Base Points
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Campaign Points
Campaign Points = (Spend Amount*MAX(Purchase Ratio,Campaign Ratio)*Tier Ratio*PCM Ratio)-(SpendAmount*Purchase Ratio*TierRatio*PCM Ratio)
Example of Point Calculation
Review the highlighted field in the Campaign Member Details report shown below.
The member in the highlighted field is spacejam@gmail.com.
They earned 188 Total Points for their purchase and 62.5 Campaign Points.
Review the information below to understand how the Total Points and Campaign Points were calculated for this member.
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Points Calculation with and without Discount
The campaign points calculation depends on how the campaign has been configured in the system. Two key configurations determine how points are awarded:
- Product-Based Campaign (YES)
- Product-Based Campaign (NO)
In addition, the purchase action ratio, campaign ratio, tier ratio, PCM ratio, and discount amount also influence the final points awarded.
Our standard rule for discount calculation is always based on the total order amount.
Below is a detailed explanation of how the system calculates points under different scenarios.
Product-Based Campaign = NO
When the campaign configuration is set to Product-Based = NO, the campaign ratio is applied to the entire order if at least one product in the order is eligible for the campaign. This means all products in the order receive the same campaign multiplier, even if they are not individually eligible.
In the following examples, the Purchase Ratio = 1, Campaign Ratio = 2, Tier Ratio = 1, and PCM Ratio = 1.
ORDER 1 - Without Discount
Calculation:
Step 1: Calculate Total Spend per Product
P1
Total Spend = Unit Price × Quantity
= 100 × 2
= 200
P2
Total Spend = Unit Price × Quantity
= 200 × 1
= 200
Step 2: Calculate Total Points per Product
Total Points are calculated using the formula:
Total Points = Total Spend × MAX(Purchase Ratio, Campaign Ratio) × Tier Ratio × PCM Ratio
P1
Total Points = 200 × MAX(1,2) × 1 × 1
= 200 × 2
= 400
P2
Total Points = 200 × MAX(1,2) × 1 × 1
= 200 × 2
= 400
Step 3: Calculate Base Points
Base points represent the points earned without the campaign multiplier.
Formula:
Base Points = Total Spend × Purchase Ratio × Tier Ratio × PCM Ratio
P1
Base Points = 200 × 1 × 1 × 1
= 200
P2
Base Points = 200 × 1 × 1 × 1
= 200
Step 4: Calculate Campaign Points
Campaign points represent the additional points earned due to the campaign multiplier.
Formula:
Campaign Points = (Total Spend *MAX(Purchase Ratio,Campaign Ratio)*Tier Ratio*PCM Ratio)-(Total Spend*Purchase Ratio*TierRatio*PCM Ratio)
P1 and P2
Campaign Points = ( 200*MAX(1,2)*1*1) - 200*1*1*1
= 200
Order Summary
Total Spend = 200 + 200 = 400
Total Points = 400 + 400 = 800
Total Base Points = 200 + 200 = 400
Total Campaign Points = 200 + 200 = 400
Thus, because the campaign is Product-Based NO, the 2X campaign multiplier applies to both products, resulting in 800 total points for the order.
ORDER 2 - With Discount
The ratios used in this order are:
Purchase Ratio = 1
Campaign Ratio = 2
Tier Ratio = 1
PCM Ratio = 1
Step 1: Calculate Total Spend per Product
P1
Total Spend = Unit Price × Qty
= 100 × 2
= 200
P2
Total Spend = 200 × 1
= 200
Total Order Spend = 200 + 200 = 400
Step 2: Calculate Total Points per Product
Formula:
Total Points = Total Spend × MAX(Purchase Ratio, Campaign Ratio) × Tier Ratio × PCM Ratio
P1
= 200 × MAX(1,2) × 1 × 1
= 200 × 2
= 400
P2
= 200 × MAX(1,2) × 1 × 1
= 200 × 2
= 400
Total Points before discount = 400 + 400 = 800
Step 3: Apply Discount
Discount applied to the order = 50
Net Spend Calculation
Net Spend = Total Spend − Discount
= 400 − 50
= 350
Step 4: Calculate Discount Points Deduction
Formula:
Discount Points = Discount × MAX(Purchase Ratio, Campaign Ratio) × Tier Ratio
= 50 × MAX(1,2) × 1
= 50 × 2
= 100
Step 5: Calculate Net Points
Net Points = Total Points − Discount Points
= 800 − 100
= 700
Order Summary
Total Spend = 400
Total Points = 800
Discount = 50
Net Spend = 350
Net Points Awarded = 700
Thus, after applying the discount adjustment with the campaign multiplier, the final points awarded for the order are 700 points.
In the above order if a product is returned, then the calculation will be done as per the following rules:
Return Rules
When a product is returned, the points credited for that product are removed from the order.
Formula used
- Points Removed = Unit Price × Qty
- Points Left on Order = Net Points − Points Removed
- If the Points Left on Order becomes negative, it is counted as 0.
For ORDER_2, the Net Points credited = 700.
Original Order (ORDER_2)
Case 1 – Return of Product P1 (Qty 2)
Calculation
Points Removed
= Unit Price × Qty
= 100 × 2
= 200
Points Left on Order
= Net Points − Points Removed
= 700 − 200
= 500
Case 2 – Return of Product P2 (Qty 1)
Calculation
Points Removed
= 200 × 1
= 200
Points Left on Order
= 700 − 200
= 500
Case 3 – Return of Product P1 (Qty 1)
Calculation
Points Removed
= 100 × 1
= 100
Points Left on Order
= 700 − 100
= 600
Case 4 – Return of Product P2 (Qty 1 after previous return)
Calculation
Points Removed
= 200 × 1
= 200
Points Left on Order
= 600 − 200
= 400
Case 5 – Return of Product P1 (Qty 1 when remaining points are low)
Calculation
Points Removed
= 100 × 1
= 100
Points Left on Order
= 100 − 100
= 0
Product-Based Campaign = YES
ORDER 1 - Without Discount
Formula Explanation
1. Total Spend
Total Spend represents the total amount spent on a product.
Formula
Total Spend = Unit Price × Qty
P1
Total Spend = 100 × 2 = 200
P2
Total Spend = 200 × 1 = 200
2. Total Points
Total Points are calculated using the maximum value between Purchase Ratio and Campaign Ratio, along with Tier Ratio and PCM Ratio.
Formula
Total Points = Total Spend × MAX(Purchase Ratio, Campaign Ratio) × Tier Ratio × PCM Ratio
P1
Total Points
= 200 × MAX(1,2) × 1 × 1
= 200 × 2
= 400
P2
Total Points
= 200 × MAX(1,1) × 1 × 1
= 200 × 1
= 200
3. Base Points
Base Points are calculated using only the Purchase Ratio, along with Tier Ratio and PCM Ratio.
Formula
Base Points = Total Spend × Purchase Ratio × Tier Ratio × PCM Ratio
P1
Base Points
= 200 × 1 × 1 × 1
= 200
P2
Base Points
= 200 × 1 × 1 × 1
= 200
4. Campaign Points
Campaign Points represent the additional points awarded because of the campaign ratio.
Formula
Campaign Points
= (Total Spend × MAX(Purchase Ratio, Campaign Ratio) × Tier Ratio × PCM Ratio)
− (Total Spend × Purchase Ratio × Tier Ratio × PCM Ratio)
P1
Campaign Points
= (200 × 2 × 1 × 1) − (200 × 1 × 1 × 1)
= 400 − 200
= 200
P2
Campaign Points
= (200 × 1 × 1 × 1) − (200 × 1 × 1 × 1)
= 200 − 200
= 0
Final Summary
Metric |
Value |
|---|---|
Total Spend |
400 |
Total Base Points |
400 |
Total Points Earned |
600 |
Total Campaign Points |
200 |
Observation:
Product P1 receives additional campaign points because its Campaign Ratio 2 is greater than Purchase Ratio 1.
Product P2 has the same Purchase Ratio and Campaign Ratio, so no extra campaign points are awarded.
ORDER - 2 With Discount
Detailed Step-by-Step Calculation
1. Total Spend Calculation
Formula
Total Spend = Unit Price × Qty
P1
Total Spend = 100 × 2
Total Spend = 200
P2
Total Spend = 200 × 1
Total Spend = 200
Total Spend of Order
Total Spend = 200 + 200
Total Spend = 400
2. Total Points Calculation
Formula
Total Points = Total Spend × MAX(Purchase Ratio, Campaign Ratio) × Tier Ratio × PCM Ratio
P1
MAX(Purchase Ratio, Campaign Ratio)
= MAX(1,2)
= 2
Total Points
= 200 × 2 × 1 × 1
= 400
P2
MAX(Purchase Ratio, Campaign Ratio)
= MAX(1,1)
= 1
Total Points
= 200 × 1 × 1 × 1
= 200
Total Points of Order
Total Points
= 400 + 200
= 600
3. Discount Calculation
Discount applied in the order:
P1 Discount = 50
P2 Discount = 0
Total Discount
Total Discount
= 50 + 0
= 50
4. Net Spend Calculation
Formula
Net Spend = Total Spend − Discount
P1
Net Spend
= 200 − 50
= 150
P2
Net Spend
= 200 − 0
= 200
Total Net Spend
Total Net Spend
= 150 + 200
= 350
5. Net Points Calculation
Formula
Net Points = Total Points − (Discount × Purchase Ratio × Tier Ratio)
P1
Points Reduction
= Discount × Purchase Ratio × Tier Ratio
= 50 × 1 × 1
= 50
Net Points
= Total Points − Points Reduction
= 400 − 50
= 350
P2
Points Reduction
= 0 × 1 × 1
= 0
Net Points
= 200 − 0
= 200
Total Net Points
Total Net Points
= 350 + 200
= 550
Final Order Summary
Metric |
Value |
|---|---|
Total Spend |
400 |
Total Points |
600 |
Total Discount |
50 |
Net Spend |
350 |
Net Points |
550 |
Return Rules
Case 1 – Return of Product P1 (Qty 2)
ID |
Unit Price |
Qty |
Points Removed |
Points Left on Order |
|---|---|---|---|---|
P1 |
100 |
2 |
400 |
150 |
Calculation
Step 1: Calculate Points Removed
Points Removed
= Unit Price × Qty × MAX(Purchase Ratio, Campaign Ratio) × Tier Ratio × PCM Ratio
= 100 × 2 × MAX(1,2) × 1 × 1
= 100 × 2 × 2
= 400
Step 2: Calculate Points Left on Order
Points Left on Order
= Net Points − Points Removed
= 550 − 400
= 150
Case 2 – Return of Product P2
ID |
Unit Price |
Qty |
Points Removed |
|---|---|---|---|
P2 |
200 |
1 |
150 |
Calculation
Points Removed is calculated based on the remaining points available on the order after previous returns.
Remaining points on order = 150
Since removing full product points would exceed available points, only the remaining points are removed.
Points Removed = 150
Points Left on Order = 0
Case 3 – Return of Product P1 (Qty 1)
ID |
Unit Price |
Qty |
Points Removed |
Points Left on Order |
|---|---|---|---|---|
P1 |
100 |
1 |
200 |
350 |
Calculation
Step 1: Calculate Points Removed
Points Removed
= 100 × 1 × MAX(1,2) × 1 × 1
= 100 × 1 × 2
= 200
Step 2: Calculate Points Left on Order
Points Left on Order
= 550 − 200
= 350
Case 4 – Return of Product P2 (Qty 1)
ID |
Unit Price |
Qty |
Points Removed |
Points Left on Order |
|---|---|---|---|---|
P2 |
200 |
1 |
200 |
150 |
Calculation
Step 1: Points Removed
Points Removed
= 200 × 1 × MAX(1,1) × 1 × 1
= 200 × 1
= 200
Step 2: Points Left on Order
Points Left on Order
= 550 − 200
= 350
However, since P1 return already removed 200 points, the remaining points become:
Remaining Points
= 350 − 200
= 150
Case 5 – Return of Product P1 (Qty 1) with Discount Adjustment
ID |
Unit Price |
Qty |
Points Removed |
Points Left on Order |
|---|---|---|---|---|
P1 |
100 |
1 |
150 |
0 |
Calculation
Step 1: Points Removed
Points Removed calculated from remaining points:
Points Removed = 150
Step 2: Points Left on Order
Points Left on Order
= 150 − 150
= 0