Introduction

Loyalty tiers are a powerful way to reward your best customers and encourage higher spending. iVendNext’s tiered loyalty system lets you create multi-level reward structures that automatically upgrade customers based on their engagement. This guide explains how to set up, manage, and optimize loyalty tiers for maximum customer retention.

Why Use Tiered Loyalty?

Tiered programs:
✅ Increase spending: Customers strive to reach higher tiers for better rewards.
✅ Boost retention: Exclusive perks reduce churn.
✅ Personalize rewards: Tailor benefits to different customer segments.

Example: A coffee shop’s tiers:

• Bronze (0–100 pts): Free pastry on birthday.

• Silver (101–500 pts): Double points every Friday.

• Gold (501+ pts): Free monthly specialty drink.

Step 1: Configuring Loyalty Levels

1. Navigate to Loyalty Levels

Go to:
Home > Loyalty > Loyalty Level

2. Create Tiered Levels

For each level, define:

• Code & Description: E.g., "GOLD_LEVEL".

• Minimum Points: Threshold to unlock the tier (e.g., 500 points).

• Redemption Rules:

• Conversion Factor: 100 points = $1 discount.

• Max Redemption: Cap at 30% of transaction value.

3. Assign Benefits

Customize perks for each tier:

Step 2: Link Levels to Loyalty Plans

1. Edit Your Loyalty Plan

Navigate to:
Home > Loyalty > Loyalty Plan

2. Map Levels to Rewards

Under Plan Details:

• Set higher award values for top tiers (e.g., Gold earns 2x points).

• Exclude low-tier customers from premium offers using Criteria Groups.

Step 3: Automate Tier Upgrades & Downgrades

1. Enable Auto-Promotion

iVendNext automatically moves customers to higher tiers when they hit point thresholds.

2. Handle Downgrades

• Set expiry rules (e.g., reset tiers annually if points aren’t maintained).

• Notify customers at risk of losing status via Loyalty Notifications.

Step 4: Communicate Tier Benefits

1. Use Notifications

Configure alerts for:

• Tier upgrades: "Congratulations! You’re now a Gold Member."

• Progress updates: "You’re 50 points away from Silver!"

2. Display Tier Status

• Show tier info on POS screens and customer receipts.

• Add badges to online profiles (e.g., "Gold VIP").

Best Practices

• Limit Top Tiers: Only 5–10% of customers should reach Gold to maintain exclusivity.

• Seasonal Promotions: Offer "Tier Boost" events (e.g., "Spend $200 in March to keep Gold status").

• Analyze Data: Use Loyalty Journal to track tier migration and adjust thresholds.

Troubleshooting

❌ Customers Not Upgrading:
→ Verify Minimum Points are correctly set in the Loyalty Level.
→ Check if points expired before the tier evaluation.

❌ Inconsistent Rewards:
→ Ensure the Conflict Resolution Method (e.g., Maximum) aligns with your goals.