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Tier Levels

Guide to creating tier levels in your loyalty program, including member benefits, bonus adjustments, segmentation, and automated communications for each level.

There are plenty of reasons to provide a solution for tier levels. The reason why many businesses use tier levels is that they want to give returning customers and guests great benefits from being loyal. Examples of what you could offer tier levels, for high-consumption customers:

  • A higher bonus earning.
  • Exclusive invitations.
  • Free upgrades.
  • In-room surprises.
  • Late check-out for hotels.

The suggestion of member benefits

Level 1:

  1. This level is the first level of your loyalty members. Everyone who signs up will automatically opt for these benefits. 
    1. Name examples:
    2. Basic, Silver, or Friend
  2. Member benefits: 
    1. 10% automatic bonus earnings on member purchases. 
    2. Relevant SMS and email communication.
    3. Digital receipts for members' purchases.
    4. Member can take part in exclusive promotions with, for example, a "double bonus".
      1. Access to "my page" for an overview, change the membership, etc.
      2. Exclusive invitations to launches, events, and news.
  3. Conditions:
    1. Must register in a company loyalty program. 
    2. Has, for example, shopped for 0 - 9,999 previous 365 days. 

Level 2:

  1. Name examples:
    1. Silver, Gold, or Loyal Friend
  2. Member benefits: 
    1. All benefits from "Level 1", in addition to:
    2. Bonus% increases from 10% to 15% on all purchases, automatically.
    3. Members can also receive benefits such as "early check-in", "late check-out", "water bottle in the room", "welcome encouragement in the house", "extra discount or bonus in periods" et
    4. A member can receive additional exclusive offers, based on their membership level.
  3. Conditions:
    1. Must register in a company loyalty program. 
    2. Has, for example, shopped for 10,000 - 24,999 previous 365 days. 

Level 3:

  1. Name: Gold, Platinum, or Best Friend
  2. Member benefits: 
    1. All benefits from "Level 1" & "Level 2", in addition to:
    2. Bonus% increases from 15% to 20% on all purchases, automatically.
    3. Members can also receive benefits such as "free upgrade on availability", "free choice of item, up to a certain amount", "birthday gift card on birthday", "exclusive event", and "opportunity to give away a level 2 membership".
    4. A member can receive additional exclusive offers, based on their membership level.
  3. Conditions:
    1. Must register in a company loyalty program. 
    2. Has, for example, shopped for 25,000 > previous 365 days. 

How to create tier levels in my loyalty program?

  1. Log into your dashboard: https://loyalty.simp.no/#!/login
  2. Update segments for different tier levels
    1. Click "Campaigns"
    2. Click "Segments"
    3. Click "Create a new segment"
    4. Click "Add condition» and choose your settings for the tier level. 
      1. Example: "transaction sum", "between", "10,000" - "19,999". This will typically be "Level 2".
      2. Save your segment as the name of your "Level 2" segment, such as "Gold Member, Unique Member"
    5. Create automatic bonus increases for members in different tier levels.
  1. Click "Campaigns"
  2. Click "Bonus"
  3. Click "Create new bonus"
  4. Select "Bonus interval name". We recommend the same name as at the member level, for example, "Gold member, Unique Member".
  5. Select "start date" (today) and "end date". (3-4 years ahead)
  6. Select "Bonus percentage". In this example, Gold Members have a 15% bonus, write, therefore "15%".
  7. Select "Segment". Here you select the segment that you created in point two above. Select "Gold Member, Unique Member" from the dropdown.  
  8. Remember to create one segment and associate a bonus upgrade for each segment. Level 1 will automatically receive the "standard bonus%", which is often already set, "Level 2" and "Level 3" must be set up separately. A member will automatically receive the bonus that provides the highest benefit to the member, based on segmentation settings. 

How to automate communications, such as, "Congratulations as a Gold Member of Unique Members".

  1. Log into your dashboard: https://loyalty.simp.no/#!/login
  2. In automatic emails, you can use the same segment as you created above.
  3. Set up one or more automatic emails.
  1. Click "Campaigns"
  2. Click "Communication"
  3. Click "Create new"
  4. Choose sending channel, "SMS" or "email". 
  5. Choose "Name of the campaign", this becomes the internal name of the email. For example, "Welcome email to new gold members"
  6. Choose "Campaign type". Here are various templates that you can use to simplify your design work in the template builder.
  7. Choose "Reporting interval", This field is important for generating accurate reports. Select the same time frame as you selected in "Bonus".
  8. Choose "Subject" of the email. Example "Congratulations as a Gold Member at Unique Member!"
  9. Click "Edit email content". This will open a template builder, here you can design a great email that is automatically sent to your members.
  10. Click the dropdown "Send to an existing segment» and choose the tier level to communicate with. Example: "Gold Member, Unique Member".
  11. Click "Next» and choose "Recurrent sending".
  12. This will open "Schedule sending", choose "Recurring sending", with "frequency": "1", and "Unit": "days". 
  13. On "Schedule end", choose "Run indefinitely"
  14. Send a test email, and if it looks nice, click "Send". The automation will thus be sent to all new members who qualify for this tier level, when they meet the qualifications, once.

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