You can set conditions and configure downgrade or renewal of the existing tier for your customers.

Tier Renewal extends the validity of the current tier the customer is in, contingent upon meeting renewal conditions during the renewal check.

Tier Downgrade involves moving customers from their current tier to a lower tier when they do not meet the configured renewal conditions by the end of the validity period.

Validity period

The validity period indicates how long a customer can access the benefits of their respective tier.

The validity of the tier can be validated by any of the following options:

• Until tier upgrade or fixed duration
• Until the next registration date of the customer
• Until fixed date

Until tier upgrade or fixed duration

The validity of a customer's tier is reviewed after a specific fixed duration. During this time, customers have the opportunity to upgrade to a higher tier, and the validity period is adjusted accordingly.

Use Case

Consider the following scenario:

• The customer upgraded to a higher tier on April 15, 2024.
• The fixed duration for the renewal check is 12 months.

In this case, the renewal check for the customer occurs on April 15, 2025. If the customer meets the eligibility criteria and upgrades to a higher tier on October 25, 2024, the renewal check date is then extended to October 25, 2025, instead of the original date of April 15, 2025.

Until the Next Registration Date of the Customer

The registration date refers to when a customer registers as a loyalty customer. In this scenario, the program annually validates the tier's validity based on the customer's registration date.

Use Cases

Scenario 1

Consider the following scenario:

• The customer's registration date is October 25, 2024.
• The customer upgraded to a higher tier on October 15, 2025.

In this case, the tier renewal check happens on October 25, 2025. However, if you want the customer to stay in the new tier for a minimum duration, you can set this minimum duration, for example, to 6 months.

Here, the renewal check is postponed for 6 months after entering the new tier, meaning the next renewal check will occur on October 15, 2026.

Scenario 2

Consider another scenario where the customer's registration date falls in a leap year.

• The customer registers on February 29, 2024, a leap year.

The following renewal checks for the tier occur on these dates in subsequent years:

• February 28, 2025
• February 28, 2026
• February 28, 2027
• On the next leap year, February 29, 2028.

Until fixed date

The validity of the tier is validated on a configured fixed date every year.

Use case

Consider the below scenario:

• The date the customer upgraded to a higher tier: April 15, 2024
• Configured fixed date: April 20

In this case, the renewal check of the tier happens on April 20, 2025.

If you prefer the customer to remain in the new tier for a minimum of six months, the renewal check is nullified for that period, and the next renewal check occurs on April 20, 2026.

Tier renewal

After the validity period for a tier has expired, the customer has to go through a set of predefined conditions configured in the program for the tier renewal.

The conditions can be based on any of the following:

• Purchases - The purchase condition defines how much the customer has spent during their tier validity period.
• Number of visits - The number of visits defines how many times the customer has visited the store and made a purchase during their tier validity period.
• Points earned - The points earned indicate the total points accumulated by the customer during their tier validity period.
• Tracker value - The tracker enables tracking any target value for a defined period.

Use case

Consider the below scenario where the customer upgraded to a tier on January 15, 2024, and the configured validity period for the tier is 12 months.

The renewal conditions set for the tier are:

• Purchase value > $1000 / Number of visits > 10 / Points earned > 500 / Tracker: Bill amount in the last 180 days > $600

Between January 15, 2024, and January 15, 2025, the customer has made a purchase for $800, visited the store 12 times, earned 450 points, and the bill amount in the last 180 days is $500.

In this case, the renewal check occurs on January 15, 2025, and the customer is eligible for tier renewal. This is because the customer met the condition of visiting the store, despite not meeting the other three conditions.

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Note:

You can also configure which of the four conditions should be included in the program.

Extension of tier after renewal

Extension of tier renewal specifies how long the tier is extended once the customer meets the renewal conditions. The extension of tier duration relies on the option set in the tier validity configuration.

You can define the extension period based on the following:

• Until tier upgrade or fixed duration
• Until the next registration date of the customer
• Until a fixed date

Tier renewal until tier upgrade or fixed duration

The following options are available under this condition:

• By one month
• By tier’s validity period duration
• From fixed date by tier’s validity period duration

By one month

The tier gets renewed for one more month, with the next renewal check happening after one month, and this process continues repeatedly.

Consider the below scenario:

• The renewal check date of the tier: is April 15, 2024.

In this case, the renewal check happens on April 15, 2024, and upon meeting the renewal conditions, the tier is extended until May 15, 2024. The system will then perform the next renewal check on May 15, 2024, evaluating the renewal conditions from May 15, 2023, to May 15, 2024.

By tier’s validity period duration

The tier gets renewed for the predefined value set in the fixed duration of the tier validity.

Consider a scenario where the date the customer upgraded to a higher tier was April 15, 2024, and the fixed duration configured for the renewal check is 12 months.

In this case, the renewal check for the customer happens on April 15, 2025, and the tier gets renewed for 12 months and the next renewal check happens only on April 15, 2026.

By the duration of the tier's validity period from a fixed date

The tier gets renewed till the configured fixed date, and the renewal check happens on the fixed date.

Consider a scenario where the configured fixed date of the tier is January 1, 2025. In this case, the renewal check happens for all the customers in the organization on January 1, 2025.

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Note:

Once the set fixed date has passed, you must access the tier configuration to establish the fixed date for the following year.

Tier renewal until the next registration date of the customer

After the renewal check, the tier stays valid for 12 months from the registration date to the same date the next year.

Use case

Consider the below scenario:

• The registration date of a customer into a program is October 25, 2024.
• The date the customer upgraded to a higher tier was October 15, 2025.
• Configured minimum duration: 6 months.

In this case, the program is configured with a minimum duration of 6 months, so the renewal check on October 15, 2025, will be nullified. The system will conduct the renewal check of the tier on October 25, 2026, and upon meeting the renewal conditions, the tier of the customer is renewed, and the next renewal check happens only on October 25, 2027.

Tier renewal until fixed date

After the renewal check on the fixed date, the tier stays valid from the fixed date to the fixed date next year.

Consider a scenario where the configured fixed date is January 1st. In this case, the system conducts the renewal check of the tier for all the customers within that organization on 1st Jan of the coming year and if the tier of the customers is renewed, the next renewal check happens on 1st January of the subsequent year.

Tier downgrade

When the customer is not able to satisfy the renewal conditions, the system will downgrade the customer in three different ways as follows:

• One tier below - Setting one tier below results in the customer downgrading to a tier lower than their current tier.
• An appropriate tier based on eligibility - Configuring this option leads to the customer downgrading to a lower tier based on upgrade conditions.
  Consider the below scenario:
  • Points the customer holds at present: 500 current points
  • The tier customer is at present: third tier
  • The eligibility criteria for the second tier are 200-350 current points.
    If the customer chooses to redeem 200 points, and the remaining points the customer has are 300, they are then downgraded to the second tier based on eligibility.
• The lowest tier - Configuring the lowest tier option downgrades the customer to the lowest tier available within the program.