VIP Tiers allow merchants to drive loyalty by incentivizing enrolled members to spend more to obtain a specific program ‘status’ and with it, unlock special rewards and perks. This article will show you how to setup tiers, how enrolled members retain their existing tier or move to higher tiers and what can/cannot be changed once tiers are launched.
In this article, you’ll learn about:
Creating and configuring VIP Tiers
VIP Tier rules
Creating VIP Tiers
New tiers can be created by going to Loyalty > Configure > Points Rules > VIP Tiers. There is no limit to the number of tiers that can be created, however we recommend between 3-5 tiers in total, to maximize enrolled member interest.
⚠️ NOTE
By default, Okendo creates a base tier. Newly enrolled members will be assigned to this tier, when they join a merchant’s loyalty program.
To create a new tier:
Select the ‘+’ button. Give the new tier a name, by typing in the name text field, at the top of the new tier.
Change the icon, by clicking on the icon next to the name text field. You can also change the icon color, by editing the HEX Color Code
Add a spend requirement limit (in the store’s currency), that when achieved, will move enrolled members into that tier.
View earn points and redeem rewards rule variations enabled for that tier. To edit these, open up each rule under ‘Earn Points’ and ‘Redeem Rewards’. See ‘Rule Variations’ for more information.
Add perks, to provide enrolled members with non-discount rewards (for example, once-off experiences, exclusive offers, first access to new products) and to incentivize tier progress.
NOTE: Perks added to a tier are promoted onsite (via loyalty landing page or loyalty widgets), but are manually tracked and fulfilled by the merchant.
Modify or delete VIP Tiers
A merchant can modify or delete existing VIP Tiers, provided VIP Tiers HAVE NOT been launched. If a merchant wishes to modify or delete VIP Tiers after they have launched, they will need to contact Okendo support.
To modify an existing tier:
Go to Loyalty > Configure > Points Rules > VIP Tiers and select the tier in question.
Modify details as required.
To delete an existing tier:
Go to Loyalty > Configure > Points Rules > VIP Tiers and select the tier in question.
Select the Delete button at the bottom of the tier.
Rule Variations
Once VIP Tiers have been created, rule variations are added to further emphasize the tier hierarchy.
To add rule variations:
Locate the relevant Earn Points rule in Loyalty > Configure > Points Rules > Earn Points or the relevant Redeem Rewards rule in Loyalty > Configure > Points Rules > Redeem Points.
Select the relevant rule and go to the Available on Tiers section.
Place a checkmark against each relevant VIP Tier. The rule will not apply to unchecked VIP Tiers (and therefore enrolled members on those tiers).
Select against each checked tier and select whether to Change Tier Points or Multiply Tier Points for Earn Points rules or Modify Tier Reward or Multiply Tier Rewards for Redeem Reward rules.
Change Tier Points and Modify Tier Reward allow merchants to specify a specific value as part of the rule setup.
Multiply Tier Points and Multiply Tier Rewards allow merchants to use multiples of the base points or discount setup, specified in the rule.
VIP Program Settings
Launching VIP Tiers
VIP Tiers can be launched at the same time as the loyalty program. Alternatively, VIP Tiers may be launched after the loyalty program has launched. In this case, merchants will be provided with a separate 'Launch' button under 'VIP Program' settings.
Tier eligibility periods can also be specified here. This setting looks at spend during the selected period, to determine whether a member is promoted/demoted to a different tier or remains on their current tier.
This setting can be:
Rolling Year: Reviews member spend within a rolling 12 months prior. Members must meet the spend limits of their current tier (to retain their VIP Tier status) or meet the spend limits of the next tier (to be promoted) within a rolling 12 month period. Members can be demoted to a lower VIP Tier status, if they do not meet spend requirements, for the current tier.
Lifetime: Reviews member spend since program start date or program back date. Once a member meets the spend requirements to be promoted to the next VIP Tier, they cannot be demoted from that tier.
⚠️ NOTE
Tier eligibility periods can be changed post-launch of VIP Tiers. However we would suggest merchants only do this, where the initial tier setup was incorrect (rather than toggling between settings to experiment), as there are ramifications for both merchants and members (for example, moving from lifetime to rolling year may result in members being downgraded to lower tiers and losing perks and benefits).
The Rules of VIP Tiers
Changing VIP Tier configurations
Once VIP Tiers are launched, new tiers cannot be added and existing tiers cannot be deleted by the merchant.
A tier’s spend requirement also cannot be changed, by the merchant.
Perks and rule variations can be changed at any time.
These changes will take effect on all actions and redemptions incurred after the change.
Merchants should contact Okendo if they wish to modify the number of tiers or spend requirements per tier, after launching their loyalty program.
Who can be assigned to a VIP Tier?
As mentioned previously, only enrolled members can be assigned to VIP Tiers. Pending members and customers unknown to Okendo (ie customers who are not enrolled and don’t have ANY points) are never assigned to VIP Tiers.
How is an enrolled member's VIP Tier status determined?
An enrolled member's VIP Tier status is determined by their spend.
Okendo Loyalty does not support points-based VIP Tiers or any other methods to move member's between VIP Tiers.
Spend calculations are determined by the tier eligibility period selected in Okendo Admin > Loyalty > Configure > Settings > VIP Program.
An enrolled member's spend calculation (either to remain on their existing tier or to progress to a higher) can be based on a rolling year or on a lifetime period.
Okendo calculates a enrolled member's VIP Tier, when triggered by the following actions:
When an enrolled member makes a purchase.
When an enrolled member returns or cancels a purchase. Enrolled members who progressed to a higher VIP Tier due to a returned or cancelled order, may be returned to a lower VIP Tier.
At the end of 12 months on the current VIP tier. Okendo Loyalty assesses whether the enrolled member has spent enough over the previous 12 months to remain on the current tier.
How long do enrolled member's stay on a VIP Tier?
Generally speaking, enrolled members stay on their current VIP tier for at least 12 months (from the date they entered that VIP Tier or for each 12 month anniversary of their entry date), unless they spend enough to progress to a higher VIP Tier or their tier status is manually adjusted by the merchant.
If you have any specific questions or need further assistance, feel free to reach out to our support team.