Level-based customer loyalty through bonus points

Tiers instead of a points balance: why a level once reached is more predictable than credit, and how to steer discounts per tier.

PremSoft team 21 January 2022

2 min read

We have already introduced the principle of customer loyalty through bonus points. Alongside the points-based programme, online shops can also run a level-based bonus programme. It adds a playful component: collect points, reach new levels, and every level brings its own benefits.

Overview of the reward levels with a gold and a silver benefit, the points required and the discount granted. — The level overview in the customer account: level reached, points balance and the threshold to the next tier.

Why levels work differently from points

The advantage over a purely points-based programme is predictability. Customers can actively aim for a particular level, and whoever reaches it keeps it for a longer stretch.

For how long is the shop’s decision: a level reached can stay for good, or points can expire after a set period. The two programmes can also be combined. The benefits per level are discounts, either on certain products or across the whole range.

Product listing in which every card carries a silver benefit badge and the discounted price. — Per-level discounts on a product list: the same articles at different prices depending on the level reached.

Steering discounts on purpose

The benefits can also steer what sells. Discounts can be granted dynamically: only on clearance items, or only on products from a particular category.

How many tiers a shop needs

Which levels there are, and how many, is up to the shop - mostly along the discount structure it wants. A shop might run the levels “Bronze”, “Silver”, “Gold” and “Platinum”. The gradation creates exclusivity for loyal customers who eventually reach the top tier.

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