Ecommerce Encyclopedia

‟Ecommerce is a powerful means to connect the unconnected to global trade” - Arancha Gonzalez

How to create a distinctive customer loyalty program

A tiered loyalty program could be defined as a type of membership program that divides customers into ranks. Higher-ranked customers enjoy better benefits. Based on a certain system, tiered loyalty programs put members into certain groups, which differs it from traditional earn-and-burn loyalty programs. Each rank, also known as tier, is set with a variety of rewards, services or benefits. The higher rank a customer gets, the more benefits they will enjoy.

How to make your tiered loyalty program become outstanding from your competitors

1. Add higher benefits at higher tiers

People enjoy having a feeling of superiority to others. Therefore, customers often have a tendency to compare their rank with that of other customers’. With that taken into account, it would be a good move for you to emphasize the benefits of each tier that your buyers could reach. For instance, it is recommended that the platinum rank must have at least two more benefits than the gold rank. This would give your customer a feeling of satisfaction and furthermore, a motivation for them to achieve a higher rank with more rewards. This would help you keep your customer and prevent them from thinking of switching to another competitor of yours.

2. Personalize emails based on ranks of customers

If you know your customers’ tiers, you can set up automated email campaigns for each specific tier of customers. When someone has gotten to the bronze rank, it is obvious that they are a returning customer. Therefore, if you inform them of the further benefits of higher ranks of your customer loyalty program, it would ensure the chances of them come back to your business.

By means of helpful advice and informing customers of the benefits of the above ranks, you are encouraging them to move from their current stage toward the ultimate goal of every business: absolute loyalty and ensure customer lifetime value