Tier-based loyalty programs: 5 ways to create driven customers

Competition in ecommerce is fierce. And, with the ecommerce market set to reach $4 trillion in 2020, it might seem that there should be enough to go around. But to really succeed in a booming industry, you need to stand out from the crowd.

An effective way to differentiate is with a rewarding and engaging loyalty program. So, where to begin?

Thanks to our latest consumer research, we found that loyalty is driven by five key factors: trust, aspiration, personal interactions, identity alignment and an enjoyable user experience.

And, when we dissected the numbers, we found that 79% of shoppers are motivated by the feeling of accumulating points that they can benefit from at a later date. To target this desire for aspiration, consider adding a point or spend threshold to your program.

Loyalty programs with tiers and a promise of better rewards and perks will encourage your customers to increase their basket sizes. It can also sway them to return to your store over your competitors since they’ve already created an account with you and have more exclusive perks to return and engage with.

This blog shares five loyalty programs sporting innovative tiered-based programs to increase revenue and improve the customer experience. These stores are:

  1. Mirenesse
  2. Pacifica Beauty
  3. Bakedin
  4. Sans [ceuticals]
  5. Never Fully Dressed

Tiers

Mirenesse: Offering superior perks for a price

Mirenesse

Mirenesse is a beauty brand, boasting a smart and engaging loyalty program with tiers. Their “Love Rewards” loyalty program has two levels.

First, customers are automatically enrolled in the basic “Onyx” tier when they create their account. Here, points are earned from purchases and other on-site activities – such as leaving a review or referring a friend. Plus, customers get a joining bonus, a birthday surprise and access to the “Rewards Boutique”, where they get vouchers and free samples.

The second, “Gold Tier”, is a conditional tier that costs $10 a month. For this, members get all of the features of the “Onyx Tier”, but also get double points and added experiential perks, including access to secret sales and tester panels for new products.

Mirenesse’s tiers benefit all customers whether they’re new or old. And, for their best customers, the “Gold Tier” provides them with perks designed to reward them for their continued loyalty.

Read about Mirenesse and more best example loyalty programs in our free ebook, The LoyaltyLion Hall of Fame.

Pacifica Beauty: Making your customers part of a community

Pacifica Tiers

Pacifica Beauty is another beauty brand showing us loyalty programs with tiers done right. Their “Girl Code” program has three tiers and customers can move up the chain to get increased and improved benefits when they reach a spend threshold.

What makes Pacifica Beauty’s tiers stand out from others, is its sense of community. They use words like “friend” and “bestie” to drive a feeling of friendship with members. More exclusive perks are offered to their most loyal customers, such as early access to launches and sales. And, the exclusivity of the perks creates a sense of pride for members, strengthening the emotional bond they have established with their customers.

Pacifica Beauty also offers access to exclusive member events and private sales in the highest “Bestie” tier. Creating opportunities for loyal customers to meet up or communicate with other brand advocates is an effective method of building a community around your loyalty program.

Bakedin: Showcasing your brand

Bakedin Tiers

Bakedin uses its loyalty program with tiers, “Bakedin Brownie Points”, as an extension of their brand and to show off their identity to customers. To make this approach even more effective, they have made sure their tiers are on-brand too.

Everything from the tier names, “Home Baker” and “Pro Baker”, to the variation of the Bakedin logos, are aligned with their identity. The tiers feature on their integrated loyalty page making them fit in smoothly with their aesthetic. Each tier reminds us who Bakedin is as a company, what they do, as well as their brand logo and colors.

Sans [ceuticals]: Rewards that provoke a desire

Sans Ceuticals Tiers

Sans [ceuticals], a luxurious skin and hair care specialist, has a loyalty program with tiers aptly called “The Inner Circle” to match the brand’s luxury and emphasis on exclusivity. The tier names, “Earth”, “Water” and “Fire”, align with the brand’s values of organically sourced products.

Not only do the tiers fit in with the overall brand, but the rewards they offer are highly desirable. New members immediately enrol in “Earth” and receive a redeemable $10 in their account, as well as product samples and recipe cards with every purchase. This instant reward and the promise of extra perks with future purchases entices customers to sign up.

Customers are required to reach a spend threshold to move into the next tier. The more loyal the customer, the more value each tier holds. The increasingly desirable products allow Sans [ceuticals] to show their shoppers that they appreciate them on an individual basis.

“Water” and “Fire” can claim the same perks as “Earth”, but as these customers are more loyal, the rewards in these tiers increase to include special gifts on their birthday and exclusive rates to luxury retreats around the world.

74% of customers become loyal to a brand if they have something to aspire for. Learn more about how aspiration and exclusivity is a key driver or customer loyalty.

Never Fully Dressed: It’s all in a name

Never Fully Dressed Tiers

When creating loyalty programs with tiers, never underestimate the importance of a name. Each tier needs to be memorable and fit with your brand.

Never Fully Dressed is a fast-fashion brand putting their mark in the already busy ecommerce market. Their target audience is young and trendy and includes individuals who put a lot of work into looking current and stylish.

According to The Business Journal, 25% of Millennials spend an average of five hours a day on their phones. So, Never Fully Dressed has aptly tied each of its tiers to an emoji. By representing their tiers in this way, they’re using something that resonates with their target market.

Never Fully Dressed say they are “the one-stop-shop for sophisticated sass and chic wardrobe staples”. They have worked these brand values into the names of the loyalty tiers by naming them “Something”, “Strikingly” and “Supremely Sassy”. These titles are designed to describe the members within them and give loyal Never Fully Dressed customers a membership that they can boast about or aspire towards.

What’s next?

Consumers’ loyalty is driven by a feeling of aspiration. Loyalty programs with tiers give your customers an objective to work towards. Learn more about the key drivers of customer loyalty in our free downloadable report, Loyalty: Up close and personal.

Now you’ve seen some of the top examples out there, think about the following best practices when setting up your own:

  • Keep it aligned with your brand
  • Use catchy names
  • Create a community
  • And, offer exciting perks

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About the author

Mollie Woolnough-Rai

Mollie is a Senior Content Marketing Executive at LoyaltyLion. After graduating from UCL in 2016, she has worked both in-house and at marketing agencies providing expertise in content for both B2B and B2C clients. At LoyaltyLion, Mollie manages our content, making sure our readers get the best quality resources about customer loyalty and retention.

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