Use Cases
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
Tier | Eligibility Criteria | Validity | Renewal Conditions | Downgrade |
---|---|---|---|---|
Aviator | Customer registration/ enrolment | - | - | - |
Explorer | Purchase value in the last 365 days > $30k Or Count of flights taken in the last 365 days > 5 | Until tier upgrade or fixed duration Fixed duration: 12 months | Purchase value in the last 365 days > $40k Or Count of flights taken in the last 365 days > 5 | An appropriate tier based on eligibility |
Highflyer | Purchase value in the last 365 days > $60k Or Count of flights taken in the last 365 days > 10 | Until tier upgrade or fixed duration Fixed duration: 12 months | Purchase value in the last 365 days > $70k Or Count of flights taken in the last 365 days > 10 | An appropriate tier based on eligibility |
Jetsetter | Purchase value in the last 365 days> $120k Or Count of flights taken in the last 365 days > 20 | Until tier upgrade or fixed duration Fixed duration: 12 months | Purchase value in the last 365 days > $120k Or Count of flights taken in the last 365 days > 20 | An appropriate tier based on eligibility |
The customer loyalty program timeline would appear as described below:
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Customer Registration in Loyalty Program: April 15, 2024
- The customer joined the base tier, Aviator, upon registration into the loyalty program.
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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.
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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.
- Renewal conditions:
-
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.
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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.
- Renewal conditions:
-
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.
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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.
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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.
- Renewal conditions:
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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
Tier | Eligibility Criteria | Validity | Renewal conditions | Downgrade condition |
---|---|---|---|---|
Silver | Customer registration/enrollment | - | - | - |
Gold | Points earned in the last 730 days > 500 | Until tier upgrade or fixed duration Fixed duration: 24 months | Points earned in the last 730 days > 500 | One tier below |
Platinum | Points earned in the last 730 days > 3000 | Until tier upgrade or fixed duration Fixed duration: 24 months | Points earned in the last 730 days > 3000 | One tier below |
The customer loyalty program timeline would appear as described below:
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Customer Registration into the Loyalty Program - 10th April 2020
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The customer enrolled in the base tier, Silver, and joined the loyalty program.
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On 20th July 2021, the customer earned 550 points, leading to an upgrade.
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Customer Upgraded to Gold Tier - 20th July 2021
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The customer upgraded to the Gold tier.
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Tier validity: 20th July 2021 - 20th July 2023.
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During this period, the customer accumulated 600 points.
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Tier Renewal/Downgrade Check - 20th July 2023
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Renewal condition for Gold tier: Points earned in the last 730 days > 500.
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The customer earned more than 500 points, satisfying the condition, and the Gold tier will be renewed until 20th July 2025.
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Alternatively, if the customer earns only 400 points between 20th July 2021 and 20th July 2023, they will be downgraded to the Silver tier.
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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.
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Customer Upgraded to Platinum Tier - 15th October 2022
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The customer upgraded to the Platinum tier.
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Tier validity: 15th October 2022 - 15th October 2024.
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During this period, the customer accumulated 3500 points.
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Tier Renewal/Downgrade Check - 15th October 2024
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Renewal condition for Platinum tier: Points earned in the last 730 days > 3000.
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The customer earned more than 3000 points, satisfying the condition, and the Platinum tier will be renewed until 15th October 2026.
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Alternatively, if the customer earns only 2500 points between 15th October 2022 and 15th October 2024, they will be downgraded to the Gold tier.
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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
Tier | Eligibility Criteria | Validity | Renewal Condition | Downgrade Condition |
---|---|---|---|---|
Elite | Customer registration/enrollment | Until tier upgrade or fixed duration Fixed duration: 12 months | _ | - |
Prestige | Lifetime purchases > $1000 | Until tier upgrade or fixed duration Fixed duration: 12 months | - | One tier below |
VIP | Lifetime purchases > $2500 | Until tier upgrade or fixed duration Fixed duration: 12 months | - | One tier below |
The customer loyalty program timeline would appear as described below:
-
Customer Registration into the Loyalty Program - January 15, 2024
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The customer enrolled in the base tier, Elite, and joined the loyalty program.
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On June 20, 2024, the customer met the threshold of lifetime purchases over $1000, leading to an upgrade.
-
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The customer upgraded to the Prestige tier: June 20, 2024
- Tier validity: June 20, 2024 - June 20, 2025.
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Tier renewal/Downgrade check - June 20, 2025
- There are no renewal conditions configured.
- The customer is downgraded to the Elite tier.
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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.
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The custom upgraded to the VIP tier - April 10, 2025
- Tier validity: April 10, 2025 - April 10, 2026.
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Tier renewal/Downgrade check - April 10, 2026
- There are no renewal conditions configured.
- The customer is downgraded to the Prestige tier.
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The customer downgraded to the Prestige tier - April 10, 2026
Updated 4 months ago