Tiered programs – Progress & Benefit

Tiered programs – Progress & Benefit

A tier-based loyalty program allows customers to achieve access to greater benefits and rewards by advancing through the ranks. They spend and engage more in order to reach the next tier level or, in the case of tier expiration, maintain their current tier.

Benefits

Add value to status

Tier levels are associated with benefits. The higher the tier, the more exclusive the brand experience is.

Create more targeted experiences

Segment your customer base more effectively with tiers. Doing so improves the experience and provides targeted communication.

Establish a long-lasting relationship

Tier-based programs keep customers engaged for a longer period of time. And it’s an excellent gamification element, because reaching a new tier feels like an achievement, pushing the customer to keep ranking up.

Use behavioral science in your favor

Maintaining tier levels is just as important and desirable for customers as reaching higher ranks. Customers are willing to keep spending to prevent losing valued privileges.

Shield yourself from the competition

Distinguish your customer experience from the competitors’ with great benefits for the highest tiers. Also, high commitment time discourages high-spenders from switching.

Limitations

Tier levels represent an achievable status for customers. Once reached, they feel entitled to the related benefits, but this kind of sentiment can make it more difficult to adjust the benefits later on.