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Is a Tiered Loyalty Program Right for Your Business?

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In this presentation, learn about how tiered loyalty programs can benefit your business by increasing engagement and driving customer lifetime value.

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Is a Tiered Loyalty Program Right for Your Business?

  2. 2. You’re probably familiar with loyalty and rewards programs.
  3. 3. The more often customers shop at your business, the more points or “loyalty dollars” they earn.
  4. 4. Points can be turned in for valuable incentives That act as rewards to shoppers for performing a desired behavior
  5. 5. and keeps them coming back.
  6. 6. SO, WHAT IS A “TIERED LOYALTY PROGRAM”? And how can it help you maximize the return on your customer retention investment?
  7. 7. Tiered loyalty is a simple solution that can make a big impact. YOU CHOOSE THE TIERS
  8. 8. Good Better Best
  9. 9. GoldBronze Silver
  10. 10. Cup GobletMug
  11. 11. Choose the criteria for reaching each tier, and what benefits customers earn as moving into each progressive tier.
  12. 12. Shoppers most commonly start at the entrance-level and move up as they reach a defined threshold in amount spent frequency or items purchased.
  13. 13. Progressively larger benefits are associated with each tier corresponding with the value each shopper brings to your business. Tiered loyalty programs work on several levels:
  14. 14. Understanding your customer journey helps you measure and plan KPIs around how many members you can move, from one tier to the next. FIRST, THEY IDENTIFY AND UTILIZE A PLANNED CUSTOMER JOURNEY.
  15. 15. No one likes to be last. Tiered loyalty programs provide a challenge to be met. SECOND, THEY GAMIFY YOUR LOYALTY PROGRAM.
  16. 16. Since membership at each progressive level is earned, not given, it means that once customers have worked their way to the top, they’re less likely to want to lose their status, once attained. THIRD, THEY LEVERAGE THE PRINCIPAL OF SUNK COST.
  17. 17. You can start with a relatively simple footprint that includes a goal, a progression, and a reward.
  18. 18. As your program grows however, begin trying out more advanced strategies that go beyond the spend.
  19. 19. For instance, try using the collateral value of customer engagement with upper tiers of your program, to encourage social sharing.
  20. 20. Provide VIP program invites to top tier members that lets people they invite, start at the middle tier, instead of the first one.
  21. 21. Give free shipping benefits to those in the top tier of your program.
  22. 22. The number and type of shopper you have in each tier is valuable data that can be used to drive further engagement. For example: Which promotions are your most engaged audiences responding to? Which channels are your most loyal customers engaging on? Which campaigns are most effective at the various tiers in your program?
  23. 23. Get your tiered loyalty program started off on the right foot with these best practices:
  24. 24. Make it easy for shoppers to know where they are in your customer journey with easy-to-access account pages.
  25. 25. Send encouraging messages to let them know how close they are to moving up.
  26. 26. Make each section of your journey valuable enough to keep customers advancing through your tiers.
  27. 27. Loyalty program with omnichannel marketing get over 5x the engagement of those without, across profiles.
  28. 28. Getting started is easy. If you’re interested learning more about how you can build tiered omnichannel loyalty programs, bLoyal can help. Just visit our website at or contact our team at