Glossary
What is tiered loyalty?
Tiered loyalty gives customers a status level that improves with sustained custom, rather than only a running balance. It works when there is a meaningful gap between an occasional customer and a regular. It is wasted effort where nearly everybody behaves the same way.
Tiers add a second axis to a programme: not just how much you have accumulated, but what kind of customer you are.
Why they work
Status is motivating in a way a balance is not, and it persists between redemptions. A customer who has just cashed in a reward still has their tier.
Where they fail
Where the difference between a good customer and an average one is small, tiers mostly generate confusion. They also fail when the benefit is nominal: a level that gets you nothing teaches customers the whole scheme is decorative.
Common questions
When is a tier system worth it?
When your top customers are worth several times an average one. If the spread is narrow, tiers add explanation cost without changing behaviour.
Related terms
- Site tierA customer's standing at one particular venue: bronze, silver, gold or onyx.
- Fidella tierA customer's network-wide standing: bronze through to diamond.
- Loyalty programmeA structured scheme that rewards repeat custom with earned value.
- Cohort retentionTracking how long groups of customers who joined together keep coming back.