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:: Customer Savings Levels ::
Contact Us  
 
 

(last database update: Fri Mar 15 16:08:49 2024 PST)

Canadian Customer Group Levels Setting

In our efforts to identify our frequent and loyal customers, we assign a customer level to each of our active customers based on the statistical model below.

  1. Definitions:
    • Active customer: A consumer (end-user) who have made at least one purchase within the previous (rolling) 365 days and spent a minimum of $100 within the previous (rolling) 730 days.
    • Q0: Total amount spent during the previous (rolling) 0- 91 days period.
    • Q1: Total amount spent during the previous (rolling) 92-182 days period.
    • Q2: Total amount spent during the previous (rolling) 183-273 days period.
    • Q3: Total amount spent during the previous (rolling) 274-365 days period.
    • Y0: Total amount spent during the previous (rolling) 365 days period.
    • Y1: Total amount spent during the previous (rolling) 366-730 days period
    • Lifetime: Total amount spent from the very first purchase since registration.
    • EC factor: Easy Care Factor. EC=1 for most customer. EC will be reduced fractionally under the following circumstances: NSF on credit card purchases, invalid or inactive e-mail address, frequent cancellation of preorders, etc.

    For each active customer i, a rank value RV (i) will be calculated according to this normalised weighting formula:

    RV (i) = EC(i) * (W0*Q0+W1*Q1+W2*Q2+W3*Q3+W4*Y1+W5*(Lifetime-Y0-Y1))/W

    where

    W0=6, W1=5, W2=4, W3=3, W4=2, W5=1

    W=W0+W1+W2+W3+W4+W5.

    Thus, the RV(i) takes into account of all your lifetime purchases. It is a linear weighted sum of the customer’s spending with the heaviest weighting assigned to the most recent 90 days purchases.

    Customers who are not active (by our definition) are excluded from the ranking calculations.

  2. Customer Group Levels
  3. Each active customer will be assigned a group level based on the value of RV. The group levels are determined according to the following percentiles:

    Group Levels

    1 (Top 3 %)

    2 (Next 12%)

    3 (Next 25%)

    4 (The Rest)

    B.C. Customers

    C43

    C42

    C41

    C40

    Canadian Customers (outside of B.C)

    C33

    C32

    C31

    C30

    The rank value (RV) is updated on a weekly basis. The Group Levels as shown in the customer personal preference section will be automatically adjusted once a month.

  4. What are the benefits?
  5. Benefits are assigned accordingly to individual group levels. Some of the benefits include

    • Higher discount off our based price
    • Priority shipping (including last in, first out)
    • Promotional items (most studios promotion items are available on request without qualifications)
    • Extended viewing window

  6. How do I get a higher ranking?
  7. It is clear from the ranking model that if a customer maintains the same purchase pattern, he/she will remain in the same group. A customer will move up or down the ranking ladder when he/she significantly increases or decreases, respectively, his/her buying pattern.

     

  8. Final Words
  9. We do not claim that our statistical model is 100% foolproof. After three years of testing, however, we believe that the model is stable and robust enough to separate a long-term loyal customer from someone who merely wants to do price comparisons.

    Dealers, wholesalers, or resellers, are excluded from the ranking calculations. Please refer to our Canadian Small Independent Dealer Program for special dealer pricing.



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