Tier configuration in an airline firm

Consider an airline company that has a program with 4 tiers with the names Aviator, Explorer, Highflyer, and Jetsetter.

Tier details

The customer loyalty program timeline would appear as described below:

• Customer Registration in Loyalty Program: April 15, 2024

  • The customer joined the base tier, Aviator, upon registration into the loyalty program.

• Upgrade to Explorer Tier: July 15, 2024

  • The customer upgraded to the Explorer tier.
  • Tier validity: July 15, 2024 - July 15, 2025.
  • During this period, the customer made a $38 purchase and took 6 flights.

• Explorer Tier Renewal Check: July 15, 2025

  • Renewal conditions:
    • Purchase value > $40,000 in the last 365 days.
    • Count of flights > 5 in the last 365 days.
  • The customer's flight count met the condition, renewing the Explorer tier until July 15, 2026.

• Upgrade to Highflyer Tier: October 20, 2024

  • The customer upgraded to the Highflyer tier.
  • Tier validity: October 20, 2024 - October 20, 2025.
  • During this period, the customer made a $72,000 purchase.

• Highflyer Tier Renewal Check: October 20, 2025

  • Renewal conditions:
    • Purchase value > $70,000 in the last 365 days.
    • Count of flights > 10 in the last 365 days.
  • The customer's purchase amount met the condition, renewing the Highflyer tier until October 20, 2026.
  • Alternatively, if conditions are not met, the customer could be downgraded.

• Downgrade Scenario: October 20, 2025

  • If renewal conditions are not met (e.g., $68,000 purchase and 8 flights), the customer may be downgraded to the Explorer tier.

• Upgrade to Jetsetter Tier: December 15, 2024

  • The customer upgraded to the Jetsetter tier.
  • Tier validity: December 15, 2024 - December 15, 2025.
  • During this period, the customer made a $130,000 purchase.

• Jetsetter Tier Renewal Check: December 15, 2025

  • Renewal conditions:
    • Purchase value > $120,000 in the last 365 days.
    • Count of flights > 20 in the last 365 days.
  • The customer's purchase amount met the condition, renewing the Jetsetter tier until December 15, 2026.
  • Alternatively, if conditions are not met, the customer could be downgraded.

• Downgrade Scenario: December 15, 2025

  • If renewal conditions are not met (e.g., $100,000 purchase and 15 flights), the customer may be downgraded to the Highflyer tier.

Tier configuration in a retail company

Consider a retail company that has a program with 3 tiers with the names Silver, Gold, and Platinum.

Tier details

The customer loyalty program timeline would appear as described below:

• Customer Registration into the Loyalty Program - 10th April 2020

  • The customer enrolled in the base tier, Silver, and joined the loyalty program.

  • On 20th July 2021, the customer earned 550 points, leading to an upgrade.

• Customer Upgraded to Gold Tier - 20th July 2021

  • The customer upgraded to the Gold tier.

  • Tier validity: 20th July 2021 - 20th July 2023.

  • During this period, the customer accumulated 600 points.

• Tier Renewal/Downgrade Check - 20th July 2023

  • Renewal condition for Gold tier: Points earned in the last 730 days > 500.

  • The customer earned more than 500 points, satisfying the condition, and the Gold tier will be renewed until 20th July 2025.

  • Alternatively, if the customer earns only 400 points between 20th July 2021 and 20th July 2023, they will be downgraded to the Silver tier.

• Customer Downgraded to Silver Tier - 20th July 2023

  • Suppose the customer earns 3000 points on 15th October 2022 (Gold tier, 20th July 2021 - 20th July 2023).
  • This leads to an upgrade to the Platinum tier.

• Customer Upgraded to Platinum Tier - 15th October 2022

  • The customer upgraded to the Platinum tier.

  • Tier validity: 15th October 2022 - 15th October 2024.

  • During this period, the customer accumulated 3500 points.

• Tier Renewal/Downgrade Check - 15th October 2024

  • Renewal condition for Platinum tier: Points earned in the last 730 days > 3000.

  • The customer earned more than 3000 points, satisfying the condition, and the Platinum tier will be renewed until 15th October 2026.

  • Alternatively, if the customer earns only 2500 points between 15th October 2022 and 15th October 2024, they will be downgraded to the Gold tier.

• Customer Downgraded to Gold Tier - 15th October 2024

Example of tier configuration in a company without tier renewal conditions

Consider a company that has a program with 3 tiers with the names Elite, Prestige, and VIP.

Tier details

The customer loyalty program timeline would appear as described below:

• Customer Registration into the Loyalty Program - January 15, 2024

  • The customer enrolled in the base tier, Elite, and joined the loyalty program.

  • On June 20, 2024, the customer met the threshold of lifetime purchases over $1000, leading to an upgrade.

• The customer upgraded to the Prestige tier: June 20, 2024

  • Tier validity: June 20, 2024 - June 20, 2025.

• Tier renewal/Downgrade check - June 20, 2025

  • There are no renewal conditions configured.
  • The customer is downgraded to the Elite tier.

• The customer downgraded to the Elite tier - June 20, 2025

  • Suppose the customer earns met the benchmark of lifetime purchases > $2500 on April 10, 2025 (June 20, 2024 - June 20, 2025).
  • This leads to an upgrade to the VIP tier.

• The custom upgraded to the VIP tier - April 10, 2025

  • Tier validity: April 10, 2025 - April 10, 2026.

• Tier renewal/Downgrade check - April 10, 2026

  • There are no renewal conditions configured.
  • The customer is downgraded to the Prestige tier.

• The customer downgraded to the Prestige tier - April 10, 2026