VIP tiers are a staircase in the loyalty club: the more often a customer comes, or the more they spend, the better the perks they get. For a small shop it works best with two or three tiers, simple perks and a clear goal that the customer sees straight away on their card.
The aim is not to make the club more complicated. It is to give your best customers a reason to keep going, and to give new ones something to aim for. Here we go through how to choose a measure, set tiers and perks and avoid the most common mistakes.
What are VIP tiers in a loyalty program?
A tier is a threshold. When the customer reaches it, say ten visits, they climb to the next tier and get the perks that belong to it. Tiers sit on top of the card itself, whether it is a stamp card, a points card or something else. Stamps give the reward, tiers give status.
What separates a tier from a reward is that it stays. A reward is redeemed and it is gone. A tier is something the customer has, and it can give perks at every visit.
Should you count visits or money?
There are two common ways to measure, and the choice depends on what you sell.
| Measure | Suits when | Worth considering |
|---|---|---|
| Number of visits | Purchases are about the same size: coffee, haircut, lunch | Easy to explain and hard to misunderstand |
| Amount spent | Purchases vary a lot: shop, gifts, orders | The customer must know how the amount is counted |
For most small businesses, visits are the best choice. They reward what you want, namely the customer coming back, and they can be shown as a simple line on the card.
How do you set the tiers?
Start from how often your customers actually come. Look at an ordinary month and ask yourself what a really loyal customer does.
- The first tier should be reachable. If it demands too much it has no effect. Aim for a clear share of active customers to reach it.
- The top tier should feel special. It is for the few who are truly regulars.
- Keep the distance reasonable. The customer should see that the next tier is within reach, otherwise they give up.
Which perks suit?
Good perks are ones that cost little but feel personal. A few ideas:
- a small gift or a free extra,
- priority, an advance invitation or access to news before everyone else,
- an offer of their own that only the tier gets,
- a percent off at every visit,
- you greet them by name and acknowledge the tier at the till.
Work out the cost of each perk. A discount on every purchase can end up costing more than a reward that is redeemed once. Read what a reward really costs for one way to calculate. Also write the perks down so staff know what applies.
How do you make the tiers visible?
A tier nobody sees does no good. The customer should be able to see their tier and their next tier on the card. With Fidelia you can add up to three tiers to any card type, counted on visits or, for points, cashback and prepaid, on amount spent. The tiers and their perks are shown on the back of the card in the wallet. When the customer reaches a new tier they get a notification, and in the scanner staff see a screen of its own for the new tier so you can acknowledge it at the counter.
Tiers are included in the Pro plan, 599 kr per month excl. VAT. You can set up and preview the tiers before you decide.
Which mistakes should you avoid?
- Too many tiers. Four or five are hard to explain and even harder to maintain.
- Perks you cannot afford. Work out the cost before you promise anything.
- Harsh demotion. Taking a tier away from a customer feels like a punishment. Let the tier stay instead.
- Nobody on staff knows what the tiers mean. Go through them at a staff meeting.
- Tiers before the basics. Start with a simple card, see how customers use it and then add tiers. See how to launch a loyalty program.
If you want to compare stamps, points and cashback before you choose, read stamps, points or cashback. Prices are on the pricing page.
Summary
VIP tiers work when they are few, understandable and easy to reach. Choose visits or amount spent, set the thresholds by how your customers actually behave, offer perks you can afford and make the tier visible on the card. Start with two tiers if you like and build out when you see that it works.