Creating Minimum Commitment-Based Offers

You can differentiate the price for customers based on their minimum monthly purchase commitment. As a result, to be entitled to particular pricing, customers will be able to commit to a certain level of total monthly spending. The commitment is ensured automatically for all their subscriptions: customers who spend below their obligations are automatically charged the difference between their actual spending and the commitment amount.

Creating a Minimum Commitment-Based Service Plan

To create a minimum commitment based service offering:

1. Create a minimum commitment resource with the following parameters:

   • Consumption Type = Commitment
   • Unit of Measure = Boolean
   • Min = 0
   • Max = 1

2. Create a service template based on End Customer Agreement Gate.

3. Add the minimum commitment resource to the service template.

4. Create a generic service plan with the following parameters:

   • Billing Terms:
     • Billing Model = Charge After Billing Period
     • Align Billing Order with Statement Day: configure accordingly if you want:
       • to align all subscriptions to a particular statement day
       • to collect penalty for non-compliance on the same day every month
   • Resource Rates: set Recurring Fee for the minimum commitment resource to the necessary minimum revenue amount.

Now you can subscribe your customers to this service plan.

Creating Multilevel Commitment Based Offers

If your portfolio includes multilevel commitment offers, you can create such offers as described below.

Option 1: One Service Plan with Several Commitment Levels

1. Create several minimum commitment resources.

2. Include the resources in one minimum commitment-based service plan.

3. For each resource, set the necessary minimum commitment level, for example:

   • Level 1 = $1000
   • Level 2 = $5000
   • Level 3 = $10000

For a detailed procedure, please follow Creating a Minimum Commitment-Based Service Plan.

Option 2: Several Service Plans with a Single Commitment Level Each

1. Create several minimum commitment resources.

2. Include each resource in a separate minimum commitment-based service plan.

3. For each resource, set the necessary minimum commitment level, for example:

   • Level 1 = $1000
   • Level 2 = $5000
   • Level 3 = $10000

For a detailed procedure, please follow Creating a Minimum Commitment-Based Service Plan.

Limitations

Currently, the minimum commitment amount can only be set per customer account and cannot be set per subscription.