By rtnadmin, 3 January, 2023

Tiered Loyalty Programs

Tiered loyalty programs encourage customers to spend and purchase more starting with basic rewards and increased rewards and benefits as they move up the loyalty ladder.

Tier steps

Features and benefits

Cutting-edge program features that would benefit your business in more ways than one

Higher value, better status

Higher value, better status

In the tiered loyalty program, the value of your purchase decides on the benefits and exclusive brand features that you get to experience. The higher the tier, the bigger and better rewards and benefits follow.

Better customer relationship

Better customer relationship

Benefits based on tiers keep customers intrigued. Reaching reward milestones encourages them to rank up and stay with the brand for a longer period.

Behavior-based experiences

Behavior-based experiences

Analyze and understand your customer activities and interests depending upon which you can improve your customer experiences. As much as you incentivize them to climb higher tiers, it is important to make sure that they don’t leave the grid too.

Benefits and experiences top notch

Benefits and experiences top notch

Each reward milestone needs to be far better than the previous one fueling the customer interest to climb up the tier. To prevent high spenders from switching midway, tiered experiences should be both well-rewarding and encouraging at the same time.

Tiered loyalty program examples

From offering smaller rewards as an enrollment souvenir to bigger benefits up the tier, each purchase or engagement like referrals, reviews, or social shares could help customers earn certain points or rewards.

The program is ideal for airlines, fashion & lifestyle, athleisure beauty, and home decor industries having

Tiered loyalty

How can the tiered loyalty program benefit your business?

The tiered loyalty program helps businesses to encourage their customers through incentives and interactions to build robust brand loyalty.

Increasing benefits with tier

Increasing benefits with tier

As your customer goes up the tier, the benefits and brand experience get bigger and better. For example, if your program has bronze, silver, gold, platinum, and quartz categories, the bronze category might have only minimal rewards whereas, the quartz category will have premium and exclusive rewards and invites. This could motivate your customers to a larger extent to purchase from your brand and be engaged with your loyalty program.

Engagement beyond transactions

Engagement beyond transactions

Building customer engagement is imperative for the success of a loyalty program. Creating layers around tiers for names, branding, color schemes, and imagery could improve excitement and emotional engagement from customers. Unique branding could make your rewards program creative and attractive enough to fit both the brand and the audience. Attaching higher-value rewards and benefits to the top tiers and integrating different reward mechanisms on each tier like fixed benefits, behavioral triggers, and surprises and delights could help raise your customers’ competitive spirit.

Customer loyalty that lasts longer

Customer loyalty that lasts longer

Besides business, tiered programs build a stronger customer base on an emotional level. A feeling of recognition arises creating suspense and surprise when they cross various statuses/ranks and receive incremental benefits or rewards. Building a tiered system that drives your KPIs and mobilizes your customers could drive your brand to newer levels.

Segment your customers

Segment your customers

Categorize your customers to improve the efficiency of your program. This could not only help you analyze and observe the activities of your customers but also provide them with an out-of-the-box experience through curated content and communication based on which tier they belong to.

Entice your customers with an extraordinary loyalty experience through the tiered program