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.

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:

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.

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

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.

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.