Overview

This article 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 and Description: E.g., "BRONZE”, “SILVER”, “GOLD”.

• 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

Some of the best practices are:

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

Here’s a quick look at some common issues you might run into.

❌ 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.