All customers in the loyalty program are automatically or manually assigned to a customer tier, which allows them to enjoy tier specific member benefits and earning ratios.
Tier types
Tiers can be separated into two major types based on the method which customers enter them
Spending tiers - Tiers that are entered based on a customer's spending in a defined period
Custom tiers - Tiers that are entered based on custom actions from the merchant
Spendng tier
By default, spending tiers are assigned to a customer based on the rolling 365 days spending amount. These tiers follow a strict hierarchy order and customers may upgrade or downgrade to tiers dynamically based on their spending.
Spending tiers can further be separated into
Base tier - The default tier all customers enter when they first join your loyalty program
This tier does not expire and requires no spending to enter
There must be one base tier per loyalty program scheme and cannot be deleted
Other spending tiers - These are additional tiers a customer can move into from the base tier or other tiers based on their rolling 365 day spending.
A customer can enter another spending tier when their rolling 365 day spending meets the "entry spend" set for the tier
This tier can expire and customer can remain in this tier if their rolling 365 day spending meets the "maintain spend" set for the tier
Otherwise, they may downgrade to a lower tier based on their rolling 365 day speniddng
There are no limits to the number of tiers, but the entry spend of each tier cannot overlap with one another
Spending tiers are the most commonly used tier type to encourage customers spending. With more spending, the customer upgrades and enjoys more benefits from the higher tier.
Changes to spending tiers based on customer purchase
The following tier changes may occur based on the customer's spending:
Upgrade to a higher tier
Customers may upgrade to a higher tier when their eligible tier progress spend achieves the entry spend requirements of a higher tier.
Eligible tier progress spend is the total amount of order value (minus shipping and taxes) from all orders that have been fulfilled and passed the pending period within the past rolling 365 days.
Upon upgrading to a higher tier, the new tier expires after another 365 days.
Current tier expires
At the end of the day on the current tier's expiry date (store's local timezone), the customer's current tier will expire. Based on their eligible tier progress spend, one of the two may happen
Maintain in a tier upon tier expiry
If their eligible tier progress spend satisfies the tier maintain spend of their expiring tier, then they would remain in the current tier for another 365 days
Downgrade to a lower tier upon tier expiry
If their eligible tier progress spend does not satisfy the tier maintain spend of their expiring tier, then they would be downgraded to one of the lower spending tiers based on which tier's entry spend is satisfied by their eligible tier progress spend
Custom tiers
Custom tiers are entered only via a manual placement by the staff. The tiers are not bound to a strict hierarchy order and does not use customer spend to place a customer into a tier automatically.
These tiers can be set to expire and at the end of the day on the expiry date of their current custom tier, the custom tier will expire. Upon expiry they will be placed back into the spending tier hierachy based on the rolling 365 day spending until the time of custom tier expiry.
These are often used for custom use cases that require special handling from the normal tier hierachy and benefits - such as an exclusive invitation only VIP or staff accounts.