Accumulative discount system: the principle of operation and analysis of the most frequently asked questions of entrepreneurs

A cumulative discount system — is one of the most popular marketing tools in retail, motivating customers to return to the store to receive a higher discount percentage as the total amount of their purchases increases. For an entrepreneur, this mode is essential for building a loyal customer base and stimulating sales volume, because customers benefit from shopping at the same store and receiving the maximum advantage. 

However, entrepreneurs often ask: the customer has just made a purchase, but for some reason this amount was not added to the calculation of their discount, or the total purchase amount (customer revenue) does not match the amount from which the discount percentage is calculated. 

In most cases, this is not a technical failure at all, but the result of flexible program settings designed to protect the business owner from granting double discounts and selling goods at a loss.

How the cumulative system works

Cumulative discounts in Torgsoft are formed based on the "Discount policy" configured by the owner. The entrepreneur creates so-called transition «thresholds»: for example, when the amount reaches 1000 UAH, the customer receives 1%; when it reaches 5000 UAH — 5%, and so on.

Depending on the marketing strategy, accumulation can work according to three scenarios:

1. Without restrictions — the purchase amount accumulates continuously for the entire period.

2. Accumulation by period — the customer must collect a certain amount to move to a new percentage within the specified number of days after the last purchase.

3. With the accumulated amount reset at the end of the period — if the customer does not reach the threshold within the specified time, their accumulated amount expires.

How is the discount calculation amount calculated? 

It is important to understand that «Discount calculation amount» in the customer card is not simply the direct sum of all their receipts. The program calculates it using a complex formula that includes not only the amount of sales, but also additional transition conditions minus returns, bonus payments, possible penalties for the absence of purchases, and so on. 

Why may the purchase amount not be added to the discount calculation?

Based on the settings and the formula, there are several reasons why the latest purchase or part of the receipt does not increase the customer’s accumulation:

1. Restrictions on promotional, marked-down goods, and goods with a product discount 

This is the most common reason for support requests. The owner can configure the program so that goods already sold with a benefit for the customer do not participate in accumulation. In the Settings - Parameters - Discounts menu, there is a field «Goods that do not participate in the amount for discount calculation». There you can choose the options: "Marked down", «With product discount», or «Marked down and with product discount». If the customer buys a product that already has a product discount, and this restriction applies, the amount for this product will not be added to the customer’s accumulation calculation.

2. The product was sold under a promotion that does not participate in accumulation 

When creating any promotion in Torgsoft, there is a special setting (checkbox) «Participates in the cumulative discount system». If this checkbox was not activated during promotion setup, then the sale of promotional goods will not increase the amount required to move to the next customer discount card threshold.

3. Use of several retail chains 

If the business is divided into several retail chains (for example, different brands or business directions managed within one database), purchases may be separated. Purchases made by the customer in accounting centers that belong to another retail chain will not be included in the discount calculation amount for the current chain. Depending on which accounting center the customer card is viewed from, the discount calculation amount may differ.

4. Product returns and use of bonuses 

Any product return reduces the total accumulated amount. In addition, according to the calculation formula, the amount of bonuses used by the customer (if they paid for part of the goods with previously accumulated bonuses) is deducted from the final amount used to calculate the discount.

5. Discount reduction (penalties for inactivity) 

In the discount policy, the entrepreneur can provide for "penalties" for the absence of purchases: if the customer has not visited the store for a long time, their discount calculation amount may be forcibly reduced by the system. These penalty amounts are also subtracted from the customer’s total accumulation balance.

6. Deleting statistics of closed periods 

Sometimes entrepreneurs encounter a situation where, after the technical operation of deleting statistics of closed periods, the discount calculation amount suddenly changes. This may happen if sales for the customer remained in the deleted periods and returns for them were made in non-deleted (current) periods, or if goods were sold under promotions that do not participate in the cumulative discount system.

How to check why the amount was not added?

If the seller or owner has doubts about the correctness of the calculations, the fastest way to find out the truth is to open the «Analysis - Discount Usage Analysis» menu. There you can clearly see which specific promotion the sold product was included in, whether it had a product discount, and which conditions worked for a specific receipt. These flexible settings allow the business to encourage customers without risking its own profitability due to discounts being applied on top of each other.