Loyalty Tier Definition

Loyalty program tier is a level in a loyalty program that offers different rewards and points multiplication than another tier. In other words, tiers work as membership levels with individual rules. Typically, tiers are created based on the total number of points or customer segments (e.g., customer groups based on the CLV or annual spending). 

For example, you can offer different rewards only to VIP customers. You can also vary the number of points you give for $1 spent for every tier. For example, $1=1 point for the basic tier and $1=2 points for the advanced tier. 

Why should you use loyalty tiers?

Loyalty tiers are an important part of gamification in loyalty marketing. By setting up different tiers with more and more attractive conditions and rewards, members are more motivated to perform reward actions and collect points. 

To learn how to set up loyalty levels, go here.