Making Tiered Memberships Work for Your Business
Building long-term loyalty with tiered memberships
Tiered memberships are a hot commodity among enterprise companies that fully grasp the power of Loyalty Programs. Customers might appreciate periodic sales and discounts, but these are not the kind of perks that encourage long-term brand loyalty. Customers are more likely to engage with a brand when they have an emotional connection with the company’s products or services. One survey found that 76 per cent of consumers who forged an emotional connection with a brand used it for more than four years. A tiered membership can help you achieve this.
What is a tiered membership?
Tiered memberships, also called Tiered Loyalty Programs, offer customers different benefits based on rank. For instance, a 20-year customer likely would earn the highest level reserved for the most loyal brand followers. This is just one metric a company can use to establish tiers. A pre-determined number of benefits, Rewards, and services defines each tier. The idea is that as a customer advances up the ‘ladder,’ they earn more benefits.
Tiered memberships allow companies to reward their ‘rockstar’ customers who are loyal to the brand and engage with it frequently.
Types of tiered memberships
Tiered memberships are based on customer behaviour. Businesses that wish to offer consumers this type of offer, will need to rely on user segmentation and pricing methods to determine the best formatting.
When identifying the most appropriate tiered membership style with EonX, it will most commonly will be based on the following:
- Spending habits. The more a customer spends on a brand’s products or services, the farther up the ladder they advance. Each level comes with its own set of benefits. This formatting works well for insurance industries, telecommunication companies, luxury brands and retailers who attract high spenders. EonX’s suite of data and analytics can be harnessed to gain insights regarding customer behaviour, to further refine and drive success via their Tiered Loyalty Program.
- Points earned. Purchases equal points, with customers advancing through the levels as they make new acquisitions. This setup works well for, pharmaceutical companies, dentistry clinics and other medical industries. EonX’s customisable Points Engine allows businesses to create their own internal points currency and set the terms for their redemption.
- New business. Customers who are brand loyalists are more likely to share their experiences with others.
Promoting consumers up the ranks as they bring new referrals to a company’s doorstep is another option for tiered loyalty memberships. This kind of Tiered Loyalty Program is best for companies trying to build their brand reputation and gain customers. Companies can offer Gift Cards, Cashback Offers, discounted tangible products and much more from Australia’s leading brands, all within EonX’s Rewards Marketplace, accessible via their member portal.
The benefits of a Tiered Loyalty Program
Tiered Loyalty Programs are popular because they help form a strong bond between a brand and its customers. The return on investment is worth the time spent on creating and maintaining one when it is implemented correctly. Here are some of the benefits businesses will enjoy with a Tiered Loyalty Programs.
1. Long-term relationships with customers
Attracting customers to your products and services is only one part of the equation. Engaging with consumers via an innovative Tiered Loyalty Program helps strengthen the relationship between the brand and the consumer. Customers will feel a sense of excitement and accomplishment every time they earn a new status.
2. Harness benefits to rise above the competition
Adding privileges to upper tiers, like free delivery, extended return periods or exclusive product options, drives consumer engagement. Customers will be driven to earn those special benefits so they can count themselves among a company’s ‘elite’ brand loyalists.
3. More thorough customer segmentation
Customer-centric companies understand the value of truly getting to know their customers. Using a Tiered Loyalty Program provides access to patterns of behaviour among a brand’s clients, allowing an inside look at what matters most to them.
Gamifying tiered memberships
Tiered Loyalty Programs work best when they drive brand awareness and customer engagement. The ultimate goal is to create brand loyalists who cannot wait to earn the next VIP status with their favourite brand.
Gamification can be used effectively to accomplish this goal because it taps into engagement and motivation through consistent, and relevant communications. Customers who start at the bottom tier are inspired to compete with their fellow brand enthusiasts to reach VIP status at top speed. The tangible benefits associated with reaching a new level prompts consumers to regularly interact with a company.
Gamification can boost participation in Tiered Loyalty Programs in several ways:
- It taps into their competitive side, increasing the likelihood of continued participation.- It makes levelling up the brand community more engaging and enjoyable.
- It drives recurring behaviour by giving consumers a sense of accomplishment.
EonX’s Engagement Engine supports the inclusion of gamification into tiered memberships. Our specialists can work with your company to design a unique Tiered Loyalty Program that incorporates the power of gamification.
Incorporating a Tiered Loyalty Program
Employing best practices when incorporating a Tiered Loyalty Program is crucial to its longevity. Companies should:
- Ensure there is added value with each new tier.
- Avoid making the process of advancement too complicated.
- Offer diversified Rewards for higher tiers.
Ready to increase customer engagement? Our specialists at EonX can help get your company started down the right path.
EonX’s white-labelled loyalty, engagement, and payment platforms allow companies to more easily engage, Reward, and incentivise their customers. We do not believe in a ‘one-size-fits-all’ mentality when working with clients to create a Tiered Loyalty Program. Our team examine client demographics to provide recommendations for personalised experiences with a company’s branded ecosystem.
Consumers will feel appreciated and motivated to advance through the levels when EonX’s platform is involved in the process. Get in touch today to learn more.
