What inspires genuine client loyalty? The secret is long-term involvement with customers rather than short-term sales and discounts. 91% of customers think they are more inclined to make another purchase following a positive service experience, according to Salesforce. Tiers are a feature in the field of loyalty management that perfectly captures this idea. What is the key of tier-based loyalty schemes, though? Why are they so hard to resist? Let’s investigate!
A Tiered Loyalty Program: What Is It?
Customers can receive various loyalty programme perks depending on their position in a tiered loyalty programme, a sort of membership club. In contrast to conventional earn-and-burn loyalty programmes, tiered loyalty programmes classify members into different groups according to different measures. As clients advance, the value of the incentives, services, or benefits that characterise each rank or tier rises.
For a better understanding of these many loyalty programme kinds, consider the concept of “love” as a powerful emotional connection necessary for a happy marriage or even a bargain or purchase. This connection preserves loyalty, which is essential for making frequent and recurrent purchases. The fact that they provide clients with a benefits structure they can truly get their teeth into and engage with for years makes tiered loyalty programmes so effective.
The following six advantages of tiered loyalty programmes
Tiered loyalty programmes are a fantastic method to increase consumer engagement. Owners of tier-based programmes reported a 1.8x better return on investment than those of programmes without tiers, according to the Global Customer Loyalty Report 2022. Let’s examine what, specifically, makes tiered reward schemes so efficient for attracting customers and increasing sales:
Shower Clients With Great Privileges and Benefits
Benefits that are linked to tiers gradually rise in value. The perks and brand experience are greater and more exclusive the higher the tier. Tiers encourage participants in your loyalty programme to keep supporting your company and taking part in it.
New Strategies to Engage Clients
Tiers naturally produce chances to connect with your clients in ways other than through transactions. To increase customer excitement and emotional connection, you can add additional layer of names, branding, colour schemes, and imagery surrounding tiers. By creating programme tiers that are tailored to both your brand and audience, you can use your distinctive branding to make your rewards programme inventive and customised.
Establish Long-Term Customer Loyalty
Tiered programmes lay the groundwork for long-lasting, emotionally based interactions between customers and brands. Members feel honoured by the brand when they reach a specific status or level, but they also experience anticipation and delight when they receive incremental advantages. Customers will keep buying from you because they recognise the benefits of doing so.
Without Points or Expiration Dates, Run a Loyalty Program
Running a loyalty programme without using points is also a breeze with levels. This is particularly true in the high-end fashion industry where employing points could be seen as being “cheap.” Customers may find expiring points irritating as well, and it can be difficult for businesses to adequately express them. Additionally, if you have levels, loyal customers can preserve their advantages rather than having to start over after they’ve used their points.
Better Understanding of Your Customers
You may more effectively segment your consumer base with the aid of a tiered loyalty programme by keeping track of and studying member activities and interests. You can build communications that are specifically targeted and enhance the client experience they offer. Customers will also feel taken care of by the brand.
Protect Yourself From the Rivals
You’ll be in a stronger position to defend clients against the competition when you have a tier and advantages that a customer can obtain without using points. This is due to the fact that all members will have advantages related to upcoming transactions. People will be more likely to choose you over the competition if you tie services like free shipping or extended returns to specific tier levels because they will get more perks with each transaction.
Target the Top Tier
Tiers give members something to strive towards, giving them a motivation to remain interested in your tiered loyalty programme for a much longer period of time. This is due, in part, to the fact that members prioritise keeping their present tier above moving up in tier since it is more vital to prevent the loss of something valuable than it is to acquire new items. That is precisely the reason they won’t switch to an other brand and instead stay with your business.
Moving consumers through tiers based on dollars spent enhances their lifetime value, while setting milestones based on loyalty points gained motivates customers to participate with every facet of your programme.
Whenever you need assistance launching or redesigning your own programme, contact our team of professionals by scheduling a demo or sending an RFP.
Don’t forget to download Antavo’s Global Customer Loyalty Report 2022, a comprehensive report that provides you with guidance as you traverse the world of next-generation loyalty programmes by showcasing a number of statistics as well as upcoming market trends.