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Build a remarkable customer loyalty program on

Aug, 31, 2016
Alex Malyshev

What can be tastier than a freshly baked cream croissant? Yes, you are absolutely right – flavor the delicious phrase with a simple yet immensely affective word “free”.

Since the launch of the box top program by Betty Crocker in 1929, the first modern customer loyalty program, the ways to engage customers have evolved dramatically but the task to implement the right loyalty program and make it really effective is still extremely challenging.

There are multiple ways to entice your customers to stay and convert them into your lifelong brand envoys. Some companies focus on providing the best customer rewards, others on simplicity.

Another group chooses to charge a fee for participation. Regardless of which type you adopt, a successful customer rewards program may grow your market share by up to 20%.

The article under review will focus on tiered loyalty programs which are ubiquitous among e-commerce service providers, luxury retailers, and companies in the travel and hospitality industry.

Tiered Loyalty Programs

The reason for their popularity hides in a psychological trick of gamification theory. These loyalty schemes give customers rewards based on different levels of spending or points, motivating them to “climb” higher on the “social status ladder”.

The upper tiers convey a sense of exclusivity since they include a limited number of members, usually around 10 percent of the total customer base. Reaching these upper tiers makes customers feel like they’ve achieved elite status, and encourages others to go for it as well.

Among the premier examples of tiered loyalty, campaigns are Sephora, Starbucks, Best Buy, Bulletproof Coffee and Gilt.

Tiered customer loyalty programs are an effective way to boost your program efficiency – they do not go as a stand-alone strategy. Main features of these types of the program include:

    • make a sense of exclusivity
    • the decrease churn rate for most valuable customers
    • can be highly targeted
    • and easily customized

To raise the success chances for your campaign follow the main principles:

    • Make an effective explanation of all the aspects of your program
    • Keep rewards and freebies in line with your brand
    • Use data collected on your customers’ purchasing habits to craft targeted promotional emails

As a result, you can add a minimum 3% on your Client Loyalty Index, after the first year of implementation. Looks appealing, doesn’t it? tiered loyalty program is a real game-changer offers a variety of customer loyalty solutions including its flagship tiered loyalty program. Our loyalty program software embodies three main principles: make it easy to understand, use and earn rewards.

Our team elaborates a tailored solution for each and every client and back it with unparalleled technical and management expertise.  

Keep in mind that your current customers are the most valuable. Enjoy your free cream croissants and don’t forget to check out our upscale customer loyalty solutions here.

About has a proven track record of providing financial services companies with the core banking functionality that they need, using its secure, robust, and configurable API platform as a one-stop-shop solution. 

Contact us to learn more about our banking solutions. We are open to talk about how can be useful for your business.

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