[Coming Soon] Automatic Downgrade of Order Cancellation | Membership Tier

⚠️ Note: If you have this feature toggle, the system will use the new logic to process the valid orders of the membership tier, and the membership upgrade and renewal logic will also be adjusted. For details, please refer to the following instructions:

• Adjustment to the logic of recognizing valid orders, upgrades and extension of membership tiers
• Enable the feature
• Updating return order amount
• Membership upgrade/downgrade notification

1. Adjustment to the logic of recognizing valid orders, upgrades and extension of membership tiers 

If the toggle switch of "Automatic Downgrade of Order Cancellation" appears on your "Membership Tiers" page, the definitions of valid orders, upgrades, and membership extensions will be adjusted as shown in the tables below:

Definition of valid orders for membership tiers 

The logic behind membership upgrade and extension

Examples of membership tier upgrade

1. Membership upgrade condition = Purchase within specific period

System logic: When the order status of the customer's order is updated to "Completed" by the store, the system will capture the orders within the specified period (N~N-1 days) to confirm whether the amount meets the upgrade condition.

The membership upgrade condition for the VIP tier is
"Total spend $3000 within 12 months".

A member created an order on 25 Aug 2022.

You updated the order status of this order to "Completed" on 2 Sep 2022.

⬇️

The system processed an upgrade check in the early morning on 3 Sep 2022.

It backdated 26 Aug 2021 - 25 Aug 2022 from the time when
the last order changed to "Completed"(2 Sep 2022) to check whether the customer 
has met the $3000 upgrade condition

If yes, the system would upgrade the customer to VIP 
in the early morning of 3 Sep 2022.
And the customer's VIP tier would be valid from 3 Sep 2022 - 2 Sep 2023.

2. Membership upgrade condition = Single purchase

System logic: When the order status of the customer's order is updated to "Completed" by the store, the system will confirm whether the order amount meets the upgrade conditions.

The membership upgrade condition for the VIP tier is
"Total spend $3000 within 12 months".

A member creates an order on 25 Aug 2022.

You update the order status of this order to "Completed" on 2 Sep 2022.

⬇️

In the early morning on 3 Sep 2022, the system processes an upgrade check 
and check if the order meets the single purchase condition

If yes, the system will upgrade the customer to VIP 
in the early morning of 3 Sep 2022.
And the customer's VIP tier will be valid from 3 Sep 2022 - 2 Sep 2023.

Example of membership tier extension

The system logic of whether a member can extend their membership tier:

• The system will exclude orders before the latest upgrade, extension, and downgrade, which means that the system uses the orders within the membership validity period for determination.
• The system will only take orders whose order status is updated as "Completed" within the membership validity period.

The extension condition is "Total spend $2,000 within 12 months".

Customer created order A for $1000 on 10 September 2022
And the store updated order A to "Completed" on 18 September 2022

Customer placed order B for $1000 on 14 October 2022
And the store updated order B to "Cancelled" on 16 October 2022

Customer placed order C for $1000 on 20 December 2022
And the store updated the order to "Completed" on 27 December 2022

If the customer's membership period ends on 10 November 2022,
in the early morning of 11 November 2022, 
the system took the order amount from 11 November 2022 - 10 November 2021
to confirm whether the member has met the extension condition.

The system found only order A $1000 met the definition of a valid order,
and the member did not meet the membership extension condition of $2000.
Therefore this member was downgraded to General Member.

2.  Enable the feature

1. Go to membership tier settings

In the SHOPLINE Admin, go to [Customer Management] > [Membership Tier], then switch on the toggle for "Automatic Downgrade of Order Cancellation."

Note: In the early morning after the switch is turned on, the system will check the customers who have the following events that happened the day before the switch was turned on and re-evaluate their membership tier:

• The customer's order status has been changed to "Cancelled."
• The return order status from the online store or the retail POS linked to the original order is "Completed."

The following pop-up window will appear whether this switch is turned on or off.

Before switching on the feature toggle:

Before switching off the feature toggle:

You can find the history of turning on or off the feature in [Membership Tier] > [Activity Logs]. 

2. Logic of the Automatic Downgrade of Order Cancellation

If the customer's membership gets extended to the current tier, the system will:

1. Backdate to the specific period from the start date of the membership tier, and
2. Check all the valid orders created during the specific period

to judge if the member meets the extension condition of the current membership tier.

• Still meet the condition → The member remains at the current membership tier; there is no need to change the membership expiry date.
  
• Does not meet the condition → First fallback to the membership tier before the upgrade, then judge which tier the member can be upgraded to by backdating the time when the last valid order was updated as "Completed."
  
  
  • Does not meet the upgrade condition → Maintain at the tier before the upgrade (and continue to use the current tier validity period)
  • Meets the upgrade condition → Upgrade to a new membership tier, and set the membership expiry date with the time when the last valid order was updated as "Completed." + {valid period}.
• If it is possible to return to the current tier, the system will update it back to the current tier, but reset the expiry date based on the time when the last valid order was updated as "Completed." + {valid period}.

3. Example

Membership tier rules: The upgrade condition is a purchase amount within a specific period.

Store's rule:
Spending $3000 within 6 months to upgrade to VIP with valid period of 12 months.
Spending $5000 within 6 months to upgrade to VVIP with valid period of 12 months.

1. Ben registers as a General Member.
2. He created order A for $3000 on 1 January, and the order status is marked "Completed."
3. Ben is upgraded to VIP by spending for order A  (membership tier start date 2 January 2021 ~ tier expiry date 1 January 2022).
4. Ben created order B for $1500 on 10 January, and the order status is marked "Completed."
5. He created order C for $2000 on 31 January, and the order status is marked "Completed."
6. Ben is updated to VVIP because of orders A, B, and C (membership tier start date 1 February 2021 ~ tier expiry date 31 January 2022).
7. Order A $3000 was updated to "Cancelled" on 20 February.
8. In the early morning of 21 February, the system began to run "automatic downgrade of order cancellation" by backdating to 6 months (1 August 2020～31 January 2021) from the VVIP start date (1 February 2021) to check whether the total order amount reaches the VVIP upgrade condition of $5000.
9. The system check found that the total order amount of orders B and C was $3,500, which did not reach the VVIP upgrade condition. It automatically downgraded to the VIP tier (VIP tier start date 31 January 2021 + 12 months = tier expiry date 31 January 2022).

4. Membership logs

Any change in the membership tier will be recorded in the Membership Logs.

• Reasons for tier change: System upgrade, Membership extension, Downgrade upon expiration, Order cancellation downgrade, Manual upgrade, Manual downgrade
• The valid period of the membership tier

3. Updating return order amount

When the status of the return order linked to the order changes to "Completed," when the system executes the "Automatic Downgrade of Order Cancellation," it will re-evaluate the member's tier based on the actual paid amount (order amount - refund amount of the return order).

⚠️ Notes:

• Before changing the status of the return order to "Completed," you need to update the refund amount of the return order.
• Please do not enter the refund amount in the return order and delete the original order items simultaneously. This will cause an error in recalculating the actual paid amount.
  For example,
  
  • The original order has product A for $300, product B for $500, and product C for $200.
  • You return product C and enter the refund amount of $200 on the returns form.
  • You delete product C from the original order, and the order amount becomes $800
  • The actual paid amount of this order should be $800 ($1000-$200), but the operation above will cause the actual paid amount to become $600 ($800-$200)
    
• If the customer is paid by SHOPLINE Payments, the system will record the refund amount after the online refund process of the original order. However, you still need to create a return order and manually enter the refund amount of the original order so to deduct the refund amount from the actual paid amount.
• If the subsequent return order is updated to "Cancelled," it will not trigger the system to execute "Automatic Downgrade of Order Cancellation."

4. Membership downgrade notification

• Stores with the "Automatic Downgrade of Order Cancellation " feature will see the "Member Downgrade Notification" in Custom Notification.
• The email and SMS sending toggle is switched off by default and can be turned on when necessary.
• This notification will be triggered if there is a membership downgrade due to expiration or order cancellation.
• The membership upgrade and downgrade notifications will be sent at 9:00 am (UTC+8).

Read more

• Edit and Reassign Membership Tier
• Set Up Membership Tiers
• Membership Upgrade and Extend Reminder
• Custom Notifications - Member Related