Why Tiered Loyalty Program?
A tiered loyalty program, rewards customers for being loyal to your business by giving them special perks.
Customers that advance through the ranks of a tiered loyalty program receive extra benefits. They are encouraged to spend and engage more in tiered programs to advance and obtain additional benefits.
WHY DO TIRED LOYALTY PROGRAMS EXIST?
The Advantages of Tiered Loyalty Programs
- Add value to the status
Tiers relate to ever more valuable rewards. The benefits are higher, and the brand experience is more exclusive as you move up the tiers.
- Create a long-term relationship
Customers will be more interested in tier-based programs for a longer period. They are motivated to keep ranking up by the sense of accomplishment they get when they reach a higher tier level.
- Create a highly focused experience
Monitor and analyze member activities and interests to better segment your client base. Enhance the customer experience and communicate in a more targeted manner.
- You have behavioral science on your side
It is more vital to prevent the loss of something precious than it is to acquire new items. As a result, members are equally as concerned with preserving their present tier as they are with moving up.
- Stand out from the crowd
High-tier bonuses will set your customer experience apart from your competitors. High spenders are hesitant to move due to the amount of effort required to achieve top-tier benefits.
Who Is It For?
Think Before Setting up a Tiered Loyalty Program
- Start with a Clear Goal.
Before you start building your tier system, make sure you understand what you want to achieve. What will your tiers accomplish? How will you measure success? And how much will it cost?
- Create a System That Works.
If you’re looking to create a tiered loyalty program, start by creating a plan. So think about what you want to achieve with your reward program.
- What will make it work?
- How will you measure success?
- Will you use a coupon code or a special email address?
- Do you need to track purchases online or through a mobile app?
- Set Realistic Expectations.
Once you’ve decided on the goals of your program, set realistic expectations. You might think that offering a gift card would be enough to keep people coming back, but it won’t. People expect something more than a discount when they sign up for a new service.
- Measure Results.
To make sure your program works as planned, measure its success by tracking customer behavior. If you see that your customers are spending less money after signing up for your program, then you need to adjust your strategy.
Frequently Asked Question
Tiered loyalty programs are what some companies use to maintain customer retention. Customers are grouped into different categories or tiers based on how much they spend over a certain period of time. The idea is that the longer someone has been with the company, the more they are worth to the company.
In tiered loyalty programs, the benefits vary based on the customer’s rank. Members of tiered loyalty programs are grouped according to certain metrics instead of earning and burning loyalty cards. In a tier-based system, customers progress from one level to another based on the rewards, services, or benefits they receive.
Tiered loyalty program is a pyramid-like structure that has multiple levels based on total spending of a customer. It has different rewards on each level, and has the highest rewards on the highest level. Yegertek loyalty program is a great way to create a tiered loyalty program.
Tiered loyalty programs are attractive to customers because they are structured to promote repeat business. Customers can accumulate points on certain products or services and then redeem them for different levels of recognition and rewards. While companies reward loyal customers through the program, customers benefit in turn by accumulating points for free and discounted goods and services. For example, some merchants offer rewards and special discounts for customers who reach Silver, Gold and Platinum levels in their loyalty program.