What are Tiers?
- Tiers are fixed and sequential thresholds that can be achieved by customers based on accumulated points over 12 months.
- Points used to power Tiers can be linked-to net spend with an optional multiplier or other actions
- The amount of points a customer needs to earn to attain or maintain a Tier is configurable
- An individual can only belong to one Tier at a time within a Tier program
- A brand may have multiple concurrent Tier programs simultaneously running based on different conditions
- There is no limit to how many Tiers can be customised for your member program with Omneo
- Each Tier can have exclusive Rewards, Benefits and Credits which can only be claimed when a customer is on that Tier
- A customers Tier can be used to modify broader customer incentives and experiences
How do Tiers work?
Tiers are used in conjunction with a specific Point scheme and are typically designed as part of a broader incentive strategy.
Think about this in two parts. One is to achieve, i.e. go up a Tier. The other is to maintain/keep your Tier. The treatment on each of these differs. In summary, achieve is a rolling calendar calculation while Maintain is a fixed calendar calculation.
Picture a conveyer belt that is moving with time. The Conveyer belt is always 12 months long and has boxes of spend of varying sizes that come on at the time of purchase and drop off as 12 months pass. We call this the 12m "Spend" and if, at any time, the 12month spend meets the minimum spend value of a Tier, the user will achieve that Tier. As the 12month spend moves higher, the customer will achieve higher Tiers. This system only handles Tier upgrades.
When a Tier is achieved, Omneo will save that Tier to the customer for 12 months. On the anniversary of that Tier achievement date, we look at the 12month spend and determine one of the following outcomes:
- 12m spend greater than or equal to the Tier Maintain value, they will keep the Tier for the next year.
- 12m spend less than the Tier Maintain value, Omneo will find the highest eligible Tier based on 12m spend and assign that to the customer for the following year.
At any time, a customer may graduate from a lower to a higher Tier, based on their 12m spend.
When achieving a Tier, any spend over the Tier Minimum value will be added toward the progress for Tier Maintain, for the recalculation on the anniversary.
To acknowledge a customer based on attributes outside of points, brands may use Status.
Customers can earn Tier points by doing or not doing any number of actions, such as:
- Becoming a member / creating a brand profile
- Shopping in more than 1 location over the past month
- Spending over X amount in Y period
- Using X service and purchasing Y product
- Attending an event
- Playing X amount of games
- Loaded credit onto their account
- Referring a friend
- Took up X offers in a row
A Tier can be manually assigned; however, a customer needs to meet the Tier rules to maintain it for longer than a year.
When configuring Tiers in Omneo CX manager, brands can ensure that when a customer does not maintain a Tier they will not fall below a set Tier floor.
When is it appropriate to use Tiers?
A Tiered incentive program should be employed when brands want to focus their efforts on deeply engaging a few high-value customers and reduce resource spend on those who are less engaged. Tiered programs harmonise with the commonly observed instance that most business revenue comes from a small cohort of customers.
Why employ Tiers?
Tiers are a great way to encourage your brands best customers to keep coming back, rewarding them proportionately to their patronage. They also allow frontline staff to identify brands best customers at a glance.