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VIP tiers in a loyalty program: how to do it in a small business?

VIP tiers give your most loyal customers one more reason to come back. Keep them few, work out what the perks cost and show the customer where they stand.

By The Fidelia team4 min read

VIP tiers form a staircase in your program: the more often a customer comes, or the more they spend, the better their perks. In a small business, two or three tiers, simple perks and a goal visible on the card work best.

The aim is not to complicate the program, but to give your best customers a reason to keep going and newcomers something to aim for. Here is how to choose the measure, set the tiers and perks, and avoid common mistakes.

What is a VIP tier?

A tier is a threshold. When the customer reaches it, for example ten visits, they move up to the next tier and get the perks that come with it. Tiers sit on top of the card itself, whether it is a stamp card, a points card or another type. Stamps give the reward, tiers give the status.

What sets a tier apart from a reward is that it stays. A reward is used and gone. The customer holds the tier, and it can give a perk at every visit.

Count visits or money spent?

Measure Suits when Good to know
Number of visits Purchases are roughly the same: coffee, haircut, lunch Simple to explain, hard to misunderstand
Amount spent Purchases vary a lot: boutique, gift, order The customer must know how the amount is calculated

For most small businesses, visits are the right choice: they reward what you want, the customer coming back, and read in one line on the card. In Fidelia, amount spent is available for points, cashback and prepaid cards; stamp cards count visits.

How do you set the tiers?

Start from how often your customers actually come. Look at an ordinary month and ask what a truly loyal customer does.

  1. The first tier must be reachable. Too high and it has no effect. Aim for a clear share of your active customers to reach it.
  2. The last tier must feel special. It is for the few real regulars.
  3. Keep a reasonable gap. The customer must see the next tier within reach, otherwise they give up.

Which perks should you choose?

Good perks cost little but feel personal:

  • a small gesture or a free extra,
  • priority access, a preview invitation,
  • an offer reserved for the tier,
  • a small percentage off at every visit,
  • a greeting by first name and a word about the tier at the till.

Work out each perk. A discount on every purchase can cost more than a reward used once. For a way to calculate it, read the real cost of a reward. Also write the perks down so your team knows what is promised.

How do you make tiers visible?

A tier nobody sees is useless. With Fidelia, you set up to three tiers on any card type. The tiers and their perks appear on the back of the card in the Wallet. When the customer reaches a tier, they get a notification, and the team’s scanner shows a dedicated screen so you can congratulate them at the till.

Tiers are part of the Pro plan, at €59 per month excl. VAT. You can set them up and preview them before you decide.

Which mistakes should you avoid?

  • Too many tiers. Four or five are hard to explain and to keep up.
  • Perks you cannot afford. Do the maths before you promise.
  • A harsh demotion. Taking a tier away feels like a punishment. Let it stay earned instead.
  • A team that does not know the tiers. Go over them at a team meeting.
  • Tiers before the basics. Start with a simple card, see how customers use it, then add tiers. See launching a loyalty program in a week.

To compare stamps, points and cashback before you choose, read stamps vs points vs cashback. Prices are on the pricing page.

In short

VIP tiers work when they are few, understandable and reachable. Choose visits or amount spent, set the thresholds according to your customers’ real behaviour, offer perks you can afford and make the tier visible on the card. Start with two tiers and add more when you see it works.

Questions

How many tiers for a small business?

Two or three are enough. More is hard to explain and to keep up, and the customer should see at a glance what awaits them at the next tier.

Should you count visits or euros spent?

Visits are the simplest and suit cafés, salons and places where each purchase is roughly the same size. Euros spent suit better when purchases vary a lot, for example in a boutique.

Which perks should you offer?

They do not need to be expensive: a small gesture, priority access, a members-only offer or a small percentage off. Always work out what the perk costs you.

Does the customer lose their tier if they stop coming?

That is for you to decide when designing the system. Many small businesses let the earned tier stay, because losing status easily upsets people.

Can I add tiers to a simple stamp card?

In Fidelia, tiers can be set on all card types, up to three tiers. They are part of the Pro plan.

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