Now that you know how rewards programs work, let’s look at a few common types you can adapt for your e-commerce or brick-and-mortar store.

We have already reviewed the points-based program. Let’s move on to the tiered.

Tiered customer loyalty programs are a type of membership where customers get different benefits depending on their rank. Businesses often rank membership into groups depending on certain metrics like sales or engagement or referrals.

These customer rewards programs give customers a goal. The higher their tier, the more exclusive and better reward they’ll receive. Customers simply sign up for the program and start getting rewards right away. The more they spend, the more referrals they provide, the more reviews they post; the more perks they get.

Once a customer reaches a specific tier, they can earn their reward.  Each tier can be named, i.e. “Enthusiast,” “Premier Member,” “Ranger,” etc.  The naming convention can refer to different levels of product selection.  Each tier has specific requirements and more benefits and rewards. Rewards include money-back, coupons, gift cards, first chance at sales, first chance at new items, exclusive sales or discounts or offers, or merch.

Not sure where to start? Ask customers what they want from a rewards program. You can easily run a survey or poll with your customer base to find out. Then create a rewards program accordingly.

Read about the four basic types of customer loyalty programs.

1. Points-based Loyalty Program – Published 03/10/2023
2. Tiered Loyalty Program – Published 03/17/2023
3. Paid Loyalty Program – Published 03/24/2023
4. Value-based Loyalty Program – Published 03/31/2023

Have you read about all of them?