Promotions

Promotions enable you to offer customers incentives to purchase. WebSphere Commerce supports numerous types of promotions, such as price promotions including simple discounts; merchandise specials such as gifts with purchase and buy-one-get-one; and service promotions including reduced shipping costs. Business users create and manage promotions using the Promotions tool in the Management Center.

Promotion organization
Promotions are owned by stores. They can be uniquely identified by the store they belong to, their name, version and revision. Promotions are organized into Promotion Groups, which are also owned by stores. Each promotion belongs to one, and only one, promotion group. Optionally, a promotion can be associated with a campaign. Promotion policies can be optionally associated with promotion groups. When a policy is associated with a promotion group, it applies to all promotions in that group. When a promotion policy is not associated with any group, it is considered global, which means it is applicable to any and all promotions. Promotion policies are owned by individual stores as well. Currently the following promotion groups and policies are available in WebSphere Commerce by default: Global promotion policies This group contains the following global promotion policies: 1. Enforces global exclusivity between promotions. 2. Enforces that order level promotions can be combined with product level promotions to maintain backward compatibility. ProductLevelPromotion promotion group This group contains all of the product level promotions. It contains the following policies: 1. Enforces the rule that any order item can participate in only one product level promotion. 2. Enforces group level exclusivity between product level promotions. 3. Enforces the redemption limit of product level promotions. OrderLevelPromotion promotion group This group contains all of the order level promotions. It contains the following policies: 1. Enforces only one order level promotion can be applied to any order. 2. Enforces the redemption limit of order level promotions.

ShippingPromotion promotion group This group contains all of the shipping promotions. It contains the following policies: 1. 2. 3. 4. Enforces the rule that any order item can participate in only one shipping promotion. Enforces group level exclusivity between shipping promotions. Enforces redemption limit of shipping promotions. The tools to determine which shipping promotion was applied to an order is not available at present. But when the shipping promotion for an order is expired, it will be removed from the order on running OrderCalculate or OrderPrepare. 5. The table PX_PROMOARG provides the historical information about all of the promotions applied for an order.

Promotion lifecycle
A business user creates a promotion in the inactive state. From that point forward, the promotion can be activated, modified, and deleted. The following diagram depicts the lifecycle of a promotion.

When a promotion is first created, it is inactive. When an inactive promotion is activated, a new version of that promotion is created and marked active. The original promotion is then marked as obsolete. An active promotion can be withdrawn, marking it as inactive. Promotions are static. When changes are made to a promotion, a new revision is made. The new revision inherits the state of the promotion before the change. The original promotion is then marked as obsolete. Promotions in either active or inactive state can be modified or deleted. The changes take effect immediately after they are made.

Changes to promotions effectively create new revisions of a promotion. A revision results in a new promotion instance being created, and the old promotion instance being marked as obsolete. The different revisions, however, are considered to be the same promotion. This is significant because statistics are

collected on a per promotion basis. When a promotion changes, the statistics collected for this promotion are not reset. In contrast, when a promotion is activated, that is, a new version is created, the new instance is considered to be a different promotion. Consequently, statistics are collected anew for the new version. Statistics collected for a promotion affect the outcome of conditions such as the redemption limit.

Promotion groups
Promotions are grouped according to their type. There are three promotion groups by default:

Catalog-entry-level promotions Order-level promotions Shipping promotions

This table lists the promotion groups, and the promotion types that make up each group. Click the link in the second column to get a description of the promotion type. The link includes detailed steps on how to create the promotion type with the Promotions tool. Promotion group Promotion type

Catalog-entry-level promotions Percentage off the subtotal of catalog entries Amount off the subtotal of catalog entries Percentage off individual catalog entries Amount off individual catalog entries Buy catalog entry X, get catalog entry Y free Buy catalog entry X, get additional X at a percentage off Buy catalog entry X, get a percentage off catalog entry Y Percentage off the subtotal of catalog entries from a category Amount off the subtotal of catalog entries from a category Fixed price on the subtotal of catalog entries from a category

Promotion group

Promotion type Fixed price on individual catalog entries from a cateogry Fixed price on the subtotal of catalog entries Fixed price on individual catalog entries

Percentage off individual catalog entries from a category Amount off individual catalog entries from a category Buy catalog entries from category X, get catalog entry Y free Buy catalog entries from category X, get additional catalog entries from category X at a percentage off Buy catalog entries from category X, get a percentage off catalog entry Y Buy A ( and B and C), get a percentage off Y Buy A ( and B and C), get an amount off Y Buy A and B, get a percentage off both Order-level promotions Percentage off an order Amount off an order Free gift with an order Shipping promotions Fixed price for shipping an order Amount off shipping on an order Buy catalog entry X, get shipping at a fixed price Buy catalog entries from category X, get shipping at a fixed price

Promotion groups serve the following two purposes: 1. All of the promotions within a group share a common group of promotion policies, that control how promotions are applied to items and orders. 2. Promotion groups are one factor that determines the order in which the promotion engine evaluates promotions during the shopping flow. Promotions are evaluated according to their promotion group in the following order (by default) : a. Catalog-entry-level group b. Order-level group c. Shipping group

Redemption methods
You can select the redemption method associated with any promotion. The choices include: Qualifying purchase Customers who meet the purchase conditions automatically qualify for the promotion; no promotion code or coupon is required. Requires promotion codes Customers must enter a promotion code to apply the promotion to their order. For the Promotion code specification, specify either public or unique promotion codes:

Public promotion codes can be reused by any customer, provided they know the promotion code. To create public promotion codes: 1. Select Create public promotion codes. 2. In the Promotion codes table, type a reusable public promotion code, for example, HOLIDAYPROMO. Unique promotion codes provide you the ability to prevent customers from sharing promotion codes. Unique promotion codes help ensure that only targeted customers are given discounts. To create unique promotion codes: o Select Simple system-generated unique promotion codes. Then enter a prefix, code length, suffix, and the number of unique promotion codes to generate. For more information about this type of unique promotion codes, see Simple system-generated unique promotion codes. o Select Advanced system-generated unique promotion codes. Then specify an advanced pattern of characters to generate promotion codes. For more information about this type of unique promotion codes, see Advanced system-generated unique promotion codes. o Select Using imported promotion codes. Then find and add an existing list of imported promotion codes. For more information about using imported promotion codes, see Importing promotion codes.

Coupon promotion Customers must possess a virtual coupon to qualify for the promotion. You can make coupons available to customers by using an e-Marketing Spot to display content that has the following predefined click

action for a promotion: Add coupon to customer's coupon wallet. Another option is to create a Dialog activity that uses the Issue Coupon action to specify this coupon promotion. If the customer applies the coupon when checking out, the promotion is applied to the order. If you select the Coupon promotion redemption method, you must also enter a number in the Number of days until coupon expires field. This expiration date means that customers have a limited time in which to redeem the coupon, starting from when they receive the coupon.

Combination with other promotions

Each promotion has an exclusivity setting, called Combination with other promotions. This setting governs how the promotion can be evaluated with respect to other promotions. For instance, you can configure a promotion so that it has one of the following settings: Combine with other promotions This promotion can be combined with all other promotions in an order; however, the following promotion policies apply:

For catalog-entry promotions: If this promotion is applied to an item, no other catalog-entry promotions can be applied to the item. For shipping promotions: If this promotion is applied to an item, no other shipping promotions can be applied to the item. For order promotions: If this promotion is applied to the order, no other order promotions can be applied to the order.

Combine with other promotions stackable This promotion can be combined with all other promotions in an order. In addition, this promotion can be stacked on top of other promotions in the same group, which overrides certain promotion policies. Specifically:

For catalog entry promotions: If a catalog-entry promotion has already applied to an item, then this type of promotion will be applied on top of the existing promotion. For shipping promotions: If a shipping promotion has already applied to an item, then this type of promotion will be applied on top of the existing promotion. For order promotions: If an order promotion has already applied to the order, then this type of promotion will be applied on the top of the existing promotion.

The priority of promotions determines whether a stackable promotion will apply to an order. If an order qualifies for multiple promotions in the same group, the promotion with the highest priority is applied first. If subsequent promotions are stackable, then those promotions are applied in order of priority. Any promotions that are not stackable are not applied to the order, unless the promotion has the highest priority and is applied to the order first.
Exclusive within the same group

If this promotion is applied, no other promotions from the same promotion group can be applied to the order. For example, if this promotion is a catalog-entry promotion, no other catalog-entry promotions can be applied to the order.

This option is labeled Exclusive within selected groups

Exclusive within an order If this promotion is applied, no other promotions can be applied to the order.

This option is labeled Exclusive within all groups

Promotion priority
You can assign a priority to a promotion. When a single order qualifies for multiple promotions from the same promotion group, the promotion with the highest priority is applied first. To understand promotion groups, see the section earlier in this topic. In cases where multiple promotions are permitted, the promotions are applied in order from highest to lowest priority. For example, consider a store that offers two order-level promotions:

A 10% off your order promotion with a priority of 1. A $15 off your order promotion that has a priority of 10.

If a customer's order qualifies for both, the second promotion is applied first, since it has the higher priority of 10. To assign a priority value, choose a number from 0 (lowest priority) to 1000 (highest priority). It can be known from priority column of the PX_PROMOTION table.

Promotion states
It can be known from the status column in the PX_PROMOTION table. There are several promotion states: Inactive New promotions are inactive by default when created. Inactive promotions are not available on the storefront. Active

Active promotions are available on the storefront.

Any submitted orders are evaluated against promotions that are active at the time the order was submitted. If a promotion is deactivated after the customer adds qualifying SKUs to a cart, but before the order is submitted, the promotion does not apply. Activating When activating a promotion that imports codes from a CSV file or generates codes, the promotion is set to the Activating state while the codes populate. The promotion refreshes every 5 seconds, providing updated information about the status of the promotion and its code population. After promotion codes are successfully populated, you cannot repopulate promotion codes for the same promotion. Reactivating a promotion does not generate new codes. Suspended When the total maximum redemptions are reached for a promotion, the promotion state changes to suspended. For example, if you create a promotion with a redemption limit of 1000, the next customer who qualifies for this promotion does not receive it. The promotion state changes to Suspended. Promotions in Suspended state can be deactivated. The Suspended state displays on the Promotions - List when one or more promotions are in this state.

When you change or recalculate an order, WebSphere Commerce reevaluates the order against promotions that are currently active. As a result, a promotion that applies to the order might be removed from the revised order if, for example, that promotion expires or deactivates. If you want the customer to receive the original promotion, you must manually adjust the order.

Storefront availability
To determine whether a promotion is available, the system checks the status of the promotion. If the promotion is currently in the Active state, then the evaluation continues. If the promotion is Inactive, it is considered unavailable, and is not evaluated. The next consideration is the schedule for a promotion. When you create a promotion, you can define start and end dates. Furthermore, when you create a promotion, you might optionally specify that the promotion is only available on one or more specific days of the week. In the same manner, you can define a promotion so that it is only available within a certain time period, such as between noon and 5:00 PM. If the current timestamp (according to the server) falls between the two availability dates, and meets the other optional scheduling criteria, the promotion is considered available. Otherwise, the promotion is considered unavailable, and the promotion is not evaluated further.

Applicability to customers and shopping carts

When a promotion is determined to be available, it is evaluated to determine whether it is applicable to the current shopping cart. You can target specific customers by selecting one or more customer segments to either target or exclude. If the current customer is not in the target segment, or is in an excluded customer segment, then the promotion is not applicable. You must define purchase conditions during promotion creation. These conditions may be at either the catalog-entry level, or the order level. For

example, in a 10% price reduction on a catalog entry promotion, the purchase condition requires that the catalog entry is in the customer's shopping cart. If you wanted to offer free shipping on orders that total over $100, the purchase condition requires that the shopping cart total exceeds $100.

Redemption limits
You can impose limits on the applicability of your promotions, called redemption limits, in three different ways: Maximum redemptions for this promotion

This option limits the number of times that a promotion can be used in total, by all customers. This option can be used to define a loss-leader style of promotion that limits redemption of the promotion to the first 100 qualifying orders. When the maximum redemption limit is reached, the promotion status changes to Suspended the next time the promotion is evaluated.
Maximum redemptions on a single order

This option limits the number of times that a promotion can be used in a single order. This option can be used to define a promotion that limits the redemption of the promotion to the first 5 qualifying catalog entries in an order. This option has no effect on order level or shipping promotions.
Maximum redemptions by a single customer

This option limits the number of times that a promotion can be used by a single customer. This option can be used to define a promotion that limits redemption of the promotion to a single use per customer.
For example, if you have a gift-with-purchase promotion that offers a free tie when a customer buys two dress shirts, you might want to allow a customer to apply this promotion only once on an order. Otherwise, a customer that buys 10 shirts might qualify for 5 ties.

For order- and shipping-level promotions with a maximum redemption of one by a single customer, the promotion applies to the first order placed by the customer. Subsequent orders by the same customer do not qualify for the promotion. Redemption limits are often communicated to customers so that there are no surprises. For example, some promotions are communicated as being in effect, "while supplies last," while other limits are communicated directly, such as "Limit is two per customer." If you impose redemption limits on a promotion, consider including this information in the Customer viewable long description field and any advertising messages to ensure accurate customer expectations.

Multiple discount ranges

For certain promotion types, you can define multiple discount ranges for a single promotion. Defining multiple discount ranges increases the amount, or percentage of a discount as the volume of the order

grows. For example, when creating a percentage discount on a total order, you might create a promotion that offers a 5% discount on an order that totals less than $100, but offers a 10% discount on orders that total $100 or more. You can define as many ranges as necessary for the promotion.

Advertising your promotions

You can advertise promotions by creating a Web activity that uses either the Recommend Content or the Recommend Promotion action in the Management Center Marketing tool. To do so, create content that advertises a promotion and assign it to a particular e-Marketing Spot with a Web activity. You can create content that ranges from simple, flat text that describes the promotion, to images with actions defined for how to respond when a customer clicks the image.

Changes in WebSphere Commerce Accelerator promotions and Management Center promotions

If you create promotions in Management Center, or migrate promotions from WebSphere Commerce Accelerator to Management Center, you must use Management Center to manage those promotions. There are several changes between Promotions functionality in WebSphere Commerce Accelerator and the Promotions tool in Management Center.
The following table shows the promotion type in the Management Center and the corresponding name in WebSphere Commerce Accelerator. Promotions marked with an asterisk (*) are new for WebSphere Commerce Version 7: Promotion Group Management Center promotion type WebSphere Commerce Accelerator promotion type (or closest match) Catalog-entry Percentage off the subtotal of catalog entries Percentage off per item level promotions Percentage off the subtotal of catalog entries from a Percentage off per item category Amount off the subtotal of catalog entries Fixed amount off for all

Amount off the subtotal of catalog entries from a amount off for all Fixed category Buy catalog entry X, get catalog entry Y free Free gift with purchase

Buy catalog entries from category X, get catalog gift with purchase Free

Promotion Group Management Center promotion type WebSphere Commerce Accelerator promotion type (or closest match) entry Y free Buy catalog entry X, get additional X at a percentage get additional items at a discount Buy X, off Buy catalog entries from category X, get additionalX, get additional items at a discount Buy catalog entries from category X at a percentage off Buy catalog entry X, get a percentage off catalog X, get additional items at a discount Buy entry Y * Buy A and B, get a percentage off both Percentage off individual catalog entries Buy X, get additional items at a discount Percentage off per item

Percentage off individual catalog entries from Percentage off per item a category Amount off individual catalog entries Amount off per item

Amount off individual catalog entries from a category off per item Amount Order-level Percentage off an order promotions Amount off an order Free gift with an order Shipping promotions Fixed price for shipping an order * Amount off shipping on an order Percentage off Fixed amount off Free gift with purchase Discounted shipping Discounted shipping

* Buy catalog entry X, get shipping at a fixed price Discounted shipping *Buy catalog entries from category X, get shipping at Discounted shipping

Promotion Group Management Center promotion type WebSphere Commerce Accelerator promotion type (or closest match) a fixed price

Other terminology changes between WebSphere Commerce Accelerator and Management Center include:
Management Center term Promotion group

WebSphere Commerce Accelerator term Promotion group

Catalog-entry-level Order-level Shipping level

Product level Order level Shipping level

Priority

Priority

A value that ranges from 0 (lowest) to 1000 (highest). Highest

High Moderate Low Lowest Active Inactive

Promotion status

Active Inactive Suspended

WebSphere Commerce Accelerator provides reports to detail the information gathered during the current, or most recent active period. See Viewing a promotion's statistics. The Management Center does not provide any promotions reporting. In the Management Center, you can select which price to use as a price adjustment base, either the standard offer price, or the contract price. In WebSphere Commerce Accelerator, the contract price is used by default. Additionally, the price adjustment base selection is configured as site level. In Management Center, the price adjustment base selection is configured by promotion, which provides you the ability to create more dynamic business rules.

Working with promotions

Promotions are managed by Marketing Managers, in order to keep a site's promotional efforts organized.

Creating promotions Use the Promotions tool to create promotions that offer your customers incentives to purchase. There are a wide variety of promotions that you can create depending on the goal of your promotion. Importing promotion codes You can import your own set of unique promotion codes from a comma-separated values (CSV) file. Exporting promotion codes You can export your own set of unique promotion codes into a comma-separated values (CSV) file. Browsing for promotions using lists and calendars You can browse through all promotions in the Management Center either by browsing a promotions list view, promotion folders list view or a calendar view. Copying promotions You can create duplicate promotions in order to quickly create similar promotions. After copying a promotion, you must give the copied promotion a new name before you save it. Changing promotions You can update your promotions to correct errors, adjust strategy, or to realign dates. You can change any promotion property, including the promotion name. Viewing which activities and folders reference a promotion Certain promotions might be referenced directly in marketing activities created in the Marketing tool. You can open a promotion and click the References tab to view a list of those marketing activities that reference the promotion. You can also change whether the promotion is referenced directly from this References tab, if required. Deleting promotions You can delete promotions from Management Center if they are no longer used on your store, or if the promotion is incorrect. Activating or deactivating promotions Promotions can exist in the store in three states; active, inactive, or suspended. You can edit only inactive promotions. When the maximum redemption limit for a promotion is reached, the promotion moves to suspended state. Change promotions in suspended state to inactive state before editing them. Advertising your promotions on the storefront You can advertise promotions on your site using Web activities. Advertising promotions can help drive business by raising customer awareness. Working with Coremetrics Analytics promotions reports You can open the Coremetrics Analytics Promotions Web report directly from Management Center. After opening the report, you can view any other reports and dashboards that are available to you in Coremetrics Analytics.

Organizing promotions with promotion folders As a Marketing Manager, you can now add and remove your store promotions to and from folders to make managing folders easier.

Creating promotions
Use the Promotions tool to create promotions that offer your customers incentives to purchase. There are a wide variety of promotions that you can create depending on the goal of your promotion.

Creating order-level promotions You can create order-level promotions by using the Management Center. Order-level promotions offer incentives that are based on the total value of the order. Creating shipping promotions You can create shipping promotions by using the Management Center. Shipping promotions offer incentives that affect the price of shipping orders to customers. Creating catalog entry level promotions You can create catalog entry level promotions with the Management Center. Catalog entry level promotions offer incentives that are based on the products, SKUs, and kits that customers have in their shopping carts.