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Customer Loyalty Program

Magical Ways to Improve Customer Loyalty with a Tiered Program


What drives customers’ loyalty? Any idea?


Well, most businesses think that the key lies in sales and discount, which is probably not right, according to Relationship Marketing. In today’s fierce competition, the key factors to drive loyalty are customer satisfaction and long-term engagement. This is underlined by the fact that consumers having an emotional connection with a brand are likely to have a 306% higher lifetime value.


Taking this into account, we would say that a tiered loyalty program is the best way to hold customers, create a bond with them, and boost their loyalty as well as satisfaction.


Let’s dive in to find the reasons!


What is a Tiered Customer Loyalty Program? 


A tiered loyalty program promises better and permanent rewards and perks to customers depending on the tier they belong to. In order to progress to the next tier level, customers have to reach a pre-set milestone. This milestone may include the amount they have spent or the purchases they have made over a specific period. The higher the rank, the more will be the rewards or benefits. Thus, a powerful tiered program can encourage your customers to increase their basket size or purchase frequency to reach the highest tier level ASAP.

3 Amazing Benefits of a Tiered Customer Loyalty Program 


A tiered loyalty program gives you the best of both worlds – Happy Customers and Successful Business. Here are four key benefits of this reward program.


New Customer Engagement Avenues: You can use this loyalty program for branding, such as come up with meaningful VIP tier names (Gold, Platinum, Diamond) to make customers feel valued. Since desires are never satisfied, customers will engage as much as they can to progress from Gold to Platinum, and subsequently, Diamond.


Stand Out from the Competition: By adding services like extended returns or free delivery to a certain tier level, you can give additional benefits to your customers. Thus, they will always incline toward your brand without any second thought, making you stand out of the competition.


Segment Customers Seamlessly: By tracking the customers’ activities like purchase history, you can better understand them and segment them based on their behavior. In this way, customers would feel that your brand care for them, which will build an emotional bond between you and your customers.


Note: Raise the competitive spirit among your customers by adding higher-value rewards and perks to different tier levels. This is how we think your customer loyalty program can serve you as a magic wand.


5 Interesting Ways to Make your Tiered Program Outstanding 


Have a Differentiator that Sets you Apart –

Every customer is a child at heart, who expects to be rewarded for what they have done, and compare their gained benefits with other customers. You, as a smart parent of a brand, should visualize the difference in perks offered by each tier. The platinum level must have at least 2-3 more benefits than gold.

This will add an air of exclusivity to your customer loyalty program while giving a feeling of superiority and satisfaction to customers who reach a higher rank. Besides, customers who achieve platinum rank will push their limits to attain diamond and get a better status. Thus, a tiered program will keep encouraging your customers to shop more from your brand over your competitors.


Create Engaging Tier Levels –

Bring your creativity out to choose the tier names that reflect your brand and engage your target audience in the best possible manner. For instance, if you deal in cosmetics or beauty products, the ranks could be Glow Getter, Rising Star, A-Lister, and more. Try to be as engaging as possible.


Make the Best of Fee-Based Tiered Program –

For years, there has been a price war among businesses as customers immediately switch to the brand that offers a bigger markdown. This is why your fee-based loyalty program should consistently offer an extensive range of benefits, points, gifts, or services to surprise and delight your customers. It will help you to retain them and get yourself out of the price war.

The best example of a fee-based loyalty program is Amazon prime. In different tiers, customers can win different rewards based on their subscription fees. The success of Amazon prime proved that customers are ready to pay every month for high-quality benefits.


Enhance Customer Engagement through Gamification –

Our all-time favorite coffee chain, i.e. Starbucks, has also set a great example of the tiered customer loyalty program. They have added a little gamification to their program, which allows gold card owners to win more points on monthly Double-Star Days. Flashing the personalized membership card once a month earns customers four stars per dollar spent instead of two. This is the best strategy to push customers to the next tier level, which comes after 125 stars. So, isn’t this a smart move?


In simple words, the feeling of being valued, rewarded, and appreciated is the biggest motivator. A report says that 75% of customers prefer brands that offer incentives. However, some loyalty programs do not help in strengthening the emotional connection because they only focus on discounts. This is why gamification comes in handy to save the day because it adds fun elements to the tiered loyalty program. And where there is fun, this is emotion.


Personalized Emails Based on Tier Levels –

By running a tiered loyalty program, you will automatically have a way to send personalized offers to customers based on the rank they belong to. Email and loyalty programs are a match made in heaven. You can set up an automated email campaign to nurture the different segments of the customers.

When a customer reaches the gold level and you know that he/she is loyal to your brand, you can tell them about the benefits of the platinum level. In this way, they will go the extra mile to increase the purchase frequency and achieve a higher rank.


Final Words 

These are some of the proven ways to enhance customer engagement as well as loyalty through a tiered program. Leveraging these strategies will surely help you to get the most out of your customer loyalty program and stay ahead of the curve.


Create your own Loyalty Program

About Us

CheerMe allows you to create a fully-customized, tier-based loyalty program and build an emotional connection with customers through surprise and delight. With this program, you can provide customers access to greater benefits and rewards and thus encourage them to spend and engage more to reach the next tier level.