Tiered Loyalty Programs

Progress & Benefit

With a Tiered loyalty program, customers gain access to additional benefits by advancing through the ranks. Tiered programs encourage customers to spend and engage to increase their access to privileges.

The benefits of Tiered loyalty programs

  • _ Add value to status

    Tier levels are associated with benefits, whose overall value increases after each use. Moreover, the higher the rank, the more exclusive the brand experience is.

  • _ Establish a long-lasting relationship

    Tier-based programs keep customers interested over a long period of time. Reaching a higher tier level feels like an achievement that motivates customers to keep ranking up.

  • _ Create a highly-targeted experience

    Segment your customer base more effectively: monitor & analyze the activity and interests of your members. Improve the customer experience and provide highly targeted communication.

  • _ Use behavioral science in your favor

    Preventing the loss of something valuable is more important than acquiring new things. That’s why members are just as focused on maintaining a tier as on reaching a higher one.

  • _ Shield yourself from the competition

    Distinguish your customer experience from the competitors’ with high-tier benefits. Also, the amount of effort needed for top tiers discourages high-spenders from switching.

Tiered Loyalty Program Examples

Who is it for?

  • Companies facing longer decision times and higher order values

  • Brands and retailers offering emotionally relatable products

  • Brands with positioning around a high-quality shopping experience

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