Tier qualification rules

Tier qualification defines conditions for entering and leaving a loyalty program tier. In Voucherify, there are two types of tier qualification:

  • Qualification based on a point balance
  • Qualification based on the points collected in a pre-defined period of time

Contents

  1. Overview
  2. Points balance qualification
  3. Points collected in a period of time qualification
  4. Grace Period
  5. Interaction Between Auto-Redeem and Loyalty Tiers

Overview

Implementing membership tiers is an effective way to improve loyalty management because they provide a sense of progression and achievement for customers.

Voucherify allows for adding an unlimited number of tiers to a single loyalty campaign. Each tier can come with different earning rules and rewards, which means that VIP customers can access premium rewards unavailable for regular members. 

Here is an exemplary model of 4 tiers established, along with the minimum number of points to qualify for the next tier:

  1. Basic: 0 – 99 points
  2. Silver: 100 – 499 points
  3. Gold: 500 – 999 points
  4. Platinum: 1000+ points

Note!

Qualification rules and tier structures can be edited at any time but before implementing any changes we highly encourage you to read this article.

A point balance qualification

In this option, customers qualify for the tier if their point balance is in the points range of the tier.  There are three possible scenarios within this option:

  1. Qualification is based on the current point balance

The customer is qualified for the tier immediately, once the point balance is above the defined threshold, and loses the tier as soon as the point balance is below the defined threshold.

Example
  • 10.01.2023: The customer collects 100 points (points balance = 100 points) - the customer is upgraded to the Silver tier.
  • 15.02.2023: The customer spends 50 points (points balance = 50 points) - the customer is downgraded to the Basic tier.
  • 25.02.2023: The customer collects 500 points (points balance = 550 points) - the customer is upgraded to the Gold tier.
  • 05.03.2023: The customer spends 150 points (points balance = 400 points) - the customer is downgraded to the Silver tier.
  • 02.04.2023: The customer spends 350 points (points balance = 50 points) - the customer is downgraded to the Basic tier.

  1. Qualification is based on the point balance with an expiration period

The customer is qualified for the tier immediately once the point balance is above the defined minimum threshold. Once the tier is granted, the customer keeps it for a defined period irrespective of the point balance afterward.

The expiration period is defined by the number of months you have set in the tier expiration date option. Upon tier expiration, the point balance is verified, and the customer tier is:

  • prolonged (if the point balance is above the current tier threshold)
  • or downgraded (if the point balance is below the current tier threshold).

The expiration date for the prolonged or downgraded tier is set for the end of the next period.

Example
  • 10.01.2023: The customer collects 100 points (points balance = 100 points) - the customer is upgraded to the Silver tier with an expiration date = 10.02.2023
  • 11.02.2023: Silver tier expiration - the Silver tier is prolonged till 10.03.2023, as the points balance is sufficient to keep the Silver tier (points balance = 100 points).
  • 15.02.2023: The customer spends 50 points (points balance = 50 points) - the customer tier is not changed.
  • 25.02.2023: The customer collects 500 points (points balance = 550 points) - the customer is upgraded to the Gold tier with an expiration date = 25.03.2023.
  • 05.03.2023: The customer spends 150 points (points balance = 400 points) - the customer tier is not changed.
  • 26.03.2023: Gold tier expiration - the customer is downgraded to the Silver tier with an expiration date = 25.04.2023, as the points balance is insufficient to keep the Gold tier but is sufficient to get the Silver tier (points balance = 400 points).
  • 02.04.2023: The customer spends 350 points (points balance = 50 points) - the customer tier is not changed.
  • 26.05.2023: Silver tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier), as the points balance is not sufficient to keep the Silver tier (points balance = 50 points).

  1. Qualification is based on the point balance with a rounded-up expiration period

The qualification scenario, along with tier expiration conditions, is exactly the same as in the previous point, but the expiration period, defined as the previously set number of months, is rounded up till the end of some period (end of a calendar month, for example).

So in this scenario, the tier expiration date is set in two steps:

  1. Add X months to the date of reaching the tier points balance threshold,
  2. Round-up calculated date till the end of the selected period.

Example
  • 10.01.2023: The customer collects 100 points (points balance = 100 points) - the customer is upgraded to the Silver tier with an expiration date = 28.02.2023
  • 15.02.2023: The customer spends 50 points (points balance = 50 points) - the customer tier is not changed.
  • 25.02.2023: The customer collects 500 points (points balance = 550 points) - the customer is upgraded to the Gold tier with an expiration date = 31.03.2023.
  • 05.03.2023: The customer spends 150 points (points balance = 400 points) - the customer tier is not changed.
  • 01.04.2023: Gold tier expiration - the customer is downgraded to the Silver tier with an expiration date = 30.04.2023, as the points balance is insufficient to keep the Gold tier but is sufficient to get the Silver tier (points balance = 400 points).
  • 02.04.2023: The customer spends 350 points (points balance = 50 points) - the customer tier is not changed.
  • 01.05.2023: Silver tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier), as the points balance is not sufficient to keep the Silver tier (points balance = 50 points).

Points collected in a period of time qualification

Another approach to tier qualification is based on points collected in time. A customer qualifies for the tier only if the sum of collected points in a defined time period reaches the tier threshold.

You can choose between four qualification periods: month, quarter, half year, and year.

There are four possible scenarios within this option:

  1. Qualification based on the collected points in a period with immediate start and expiration at the end of the current period

The customer is qualified for the tier immediately once collected points reach the defined threshold in a given period. The customer will keep the tier till the end of a given period unless reaching the higher tier threshold. In that case, the customer will be immediately upgraded to the higher tier.

In this option, there is no tier evaluation at the tier expiration. Once the expiration date is reached, the customer tier is always downgraded.

Example
  • 10.01.2023: The customer collects 100 points (points collected in January = 100 points) - the customer is upgraded to the Silver tier with an expiration date = 31.01.2023.
  • 01.02.2023: Silver tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier).
  • 11.02.2023: The customer collects 250 points (points collected in February = 250 points) - the customer is upgraded to the Silver tier with an expiration date = 28.02.2023.
  • 25.02.2023: The customer collects 300 points (points collected in February = 550 points) - the customer is upgraded to the Gold tier with an expiration date = 28.02.2023.
  • 01.03.2023: Gold tier expiration - the customer is downgraded to the Basic tier.

  1. Qualification based on the collected points in a period with immediate start and expiration at the end of the next period

The customer qualification scenario, along with moving on to the next tier, is exactly the same here as in the previous point.

However, upon tier expiration, there is a check on the number of points collected in the previous period, and based on that check, the customer tier can be:

  • prolonged (if collected points reach the current tier threshold)
  • or downgraded (if collected points do not reach the current tier threshold).

The expiration date for the prolonged or downgraded tier is set till the end of the current period.

Example
  • 10.01.2023: The customer collects 100 points (points collected in January = 100 points) - the customer is upgraded to the Silver tier with an expiration date = 28.02.2023.
  • 15.02.2023: The customer collects 150 points (points collected in February = 150 points) - the threshold for the Silver tier is reached, but the customer already has the Silver tier. Nothing is changed.
  • 01.03.2023: Silver tier expiration - the Silver tier is prolonged till 31.03.2023, as points collected in the previous period are enough to keep the Silver tier (points collected in February = 150 points).
  • 01.04.2023: Silver tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier), as points collected in March are insufficient to keep the Silver tier (points collected in March = 0 points).
  • 06.04.2023: The customer collects 100 points (points collected in April = 100 points) - the customer is upgraded to the Silver tier with an expiration date = 31.05.2023.
  • 25.04.2023: The customer collects 450 points (points collected in April = 550 points) - the customer is upgraded to the Gold tier with an expiration date = 31.05.2023.
  • 18.05.2023: The customer collects 100 points (points collected in May = 100 points) - the threshold for the Silver tier is reached, but the customer already has the higher tier (Gold). Nothing is changed.
  • 01.06.2023: Gold tier expiration: the customer is downgraded to the Silver tier with an expiration date = 30.06.2023, as points collected in the previous period are insufficient to keep the Gold tier but are enough to get the Silver tier (points collected in May = 100 points).
  • 01.07.2023: Silver tier expiration: the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier), as points collected in the previous period are insufficient to keep the Silver tier (points collected in June = 0 points).

  1. Qualification based on the collected points in a period with a postponed start and expiration at the end of the period

The customer is qualified for the tier once collected points reach the defined threshold in a given period, but the start is postponed till the beginning of the next period. The customer will keep the tier till the end of the period in which the tier was started.

In this option, the tier is evaluated at the beginning of each period, and as a result, the customer tier can be:

  • upgraded (if points collected in a previous period reach the higher tier threshold),
  • prolonged (if points collected in a previous period reach the current tier threshold),
  • or downgraded (if points collected in a previous period do not reach the current tier threshold).

Example
  • 10.01.2023: The customer collects 100 points (points collected in January = 100 points) - the customer reaches the Silver tier threshold, but the start is postponed till the beginning of the next period (February).
  • 01.02.2023: Beginning of the new period: February - the customer is upgraded to the Silver tier with an expiration date = 28.02.2023 based on the points collected in the previous period (points collected in January = 100 points).
  • 11.02.2023: The customer collects 250 points (points collected in February = 250 points) - the customer reaches the Silver tier threshold, but the Silver tier expiration date is not changed, as it is postponed till the beginning of the next period (March).
  • 01.03.2023: Beginning of the new period: March - the Silver tier is prolonged till 31.03.2023 based on the points collected in the previous period (points collected in February = 250 points).
  • 01.04.2023: Beginning of the new period: April - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier) based on the points collected in the previous period (points collected in March = 0 points). 
  • 04.04.2023: The customer collects 250 points (points collected in April = 250 points) - the customer reaches the Silver tier threshold, but the Silver tier expiration date is not changed, as it is postponed till the beginning of the next period (May).
  • 25.04.2023: The customer collects 300 points (points collected in April = 550 points) - the customer reaches the Gold tier threshold, but the start is postponed till the beginning of the next period (May).
  • 01.05.2023: Beginning of the new period: May - the customer is upgraded to the Gold tier with an expiration date = 31.05.2023 based on the points collected in the previous period (points collected in April = 550 points).
  • 18.05.2023: The customer collects 200 points (points collected in May = 200 points) - the customer reaches the Silver tier threshold, but nothing is changed as the start is postponed till the beginning of the next period (June).
  • 01.06.2023: Beginning of the new period: June - the customer is downgraded to the Silver tier with an expiration date = 30.06.2023 based on the points collected in the previous period (points collected in May = 200 points). 
  • 01.07.2023: Beginning of the new period: July - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier) based on the points collected in the previous period (points collected in June = 0 points).

  1. Qualification based on the collected points in a period with a postponed start and expiration at the end of the next period

The qualification process, along with that of evaluation, is exactly the same as in the previous point. The only difference is that here, the customer will keep the tier till the end of the following period from which the tier was started.

Example
  • 10.01.2023: The customer collects 100 points (points collected in January = 100 points) - the customer reaches the Silver tier threshold, but the start is postponed till the beginning of the next period (February).
  • 01.02.2023: Beginning of the new period: February - the customer is upgraded to the Silver tier with an expiration date = 31.03.2023 based on the points collected in the previous period (points collected in January = 100 points).
  • 11.02.2023: The customer collects 250 points (points collected in February = 250 points) - the customer reaches the Silver tier threshold, but the Silver tier expiration date is not changed, as it is postponed till the beginning of the next period (March).
  • 01.03.2023: Beginning of the new period: March - the Silver tier is prolonged till 30.04.2023 based on the points collected in the previous period (points collected in February = 250 points).
  • 01.04.2023: Beginning of the new period: April - the customer does not collect any points in the previous period (points collected in March = 0 points) but is not downgraded to the Basic tier yet, as the Silver tier has a longer expiration date (30.04.2023). 
  • 04.04.2023: The customer collects 250 points (points collected in April = 250 points) - the customer reaches the Silver tier threshold, but the Silver tier expiration date is not changed, as it is postponed till the beginning of the next period (May).
  • 25.04.2023: The customer collects 300 points (points collected in April = 550 points) - the customer reaches the Gold tier threshold, but the start is postponed till the beginning of the next period (May).
  • 01.05.2023: Beginning of the new period: May - the customer is upgraded to the Gold tier with an expiration date = 30.06.2023 based on the points collected in the previous period (points collected in April = 550 points).
  • 18.05.2023: The customer collects 200 points (points collected in May = 200 points) - the customer reaches the Silver tier threshold, but nothing is changed as the start is postponed till the beginning of the next period (June).
  • 01.06.2023: Beginning of the new period: June - the customer does not collect in the previous period required points to prolong the Gold tier (points collected in May = 200 points) but is not downgraded to the Silver tier, as the Gold tier has a longer expiration date (30.06.2023). 
  • 01.07.2023: Beginning of the new period: July - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier) based on the points collected in the previous period (points collected in June = 0 points).

Grace Period

If the above options do not match your business strategy, Voucherify gives you the possibility to add a grace period for the tier expiration period by extending the looming downgrade in days or months, giving customers more time to use their tier benefits.

Examples

  • Based on the collected points in a period with immediate start and expiration at the end of the current period with a grace period

In this option, the customer is qualified for the tier immediately once collected points reach the defined threshold in a given period. The customer will keep the tier till the end of a given period plus some additional time (grace period). While holding a tier and reaching the higher tier threshold, the customer will be immediately upgraded to the higher tier. Upon tier expiration, points collected in the current period are checked and based on that, the customer tier can be prolonged (if collected points reach the current tier threshold) or downgraded (if collected points do not reach the current tier threshold) till the end of the current period plus grace period.

Example:

  • 10.01.2023: The customer collects 100 points (points collected in January = 100 points) - the customer is upgraded to the Silver tier with an expiration date = 07.02.2023.
  • 08.02.2023: Silver tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier), as points collected in the current period are not sufficient to keep Silver tier (points collected in February = 0 points).
  • 11.02.2023: The customer collects 250 points (points collected in February = 250 points) - the customer is upgraded to the Silver tier with an expiration date = 07.03.2023.
  • 25.02.2023: The customer collects 300 points (points collected in February = 550 points) - the customer is upgraded to the Gold tier with an expiration date = 07.03.2023.
  • 02.03.2023: The customer collects 200 points (points collected in March = 200 points) - the threshold for the Silver tier is reached, but the customer already has the higher tier (Gold), so the tier is not changed.
  • 08.03.2023: Gold tier expiration - the customer is downgraded to the Silver tier with an expiration date = 07.04.2023, as points collected in the current period are insufficient to keep the Gold tier but are enough to get the Silver tier (points collected in March = 200 points).
  • 04.04.2023: The customer collects 100 points (points collected in April = 100 points) - the threshold for the Silver tier is reached, but the customer already has the Silver tier. Nothing is changed.
  • 08.04.2023: Silver tier expiration - the Silver tier is prolonged till 07.05.2023, as points collected in the current period are sufficient to keep the Silver tier (points collected in April = 100 points). 
  • 08.05.2023: Silver tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier), as points collected in the current period are not sufficient to keep Silver tier (points collected in May = 0 points). 

  • Based on the collected points in a period with immediate start and expiration at the end of the next period with a grace period

In this option, the customer is qualified for the tier immediately once collected points reach the defined threshold in a given period. The customer will keep the tier till the end of the next period plus some additional time (grace period). While holding a tier and reaching the higher tier threshold, the customer will be immediately upgraded to the higher tier. Upon tier expiration, there is a check on the number of points collected in the current and previous period, and based on that customer tier can be prolonged (if collected points reach the current tier threshold) or downgraded (if collected points do not reach the current tier threshold). The expiration date for the prolonged or downgraded tier is based on the period in which the threshold was reached. If the threshold was reached in the current period, then the expiration date is set at the end of the next period plus the grace period, while if the threshold was reached in the previous period, the expiration date is set at the end of the current period plus the grace period. 

Example:

  • 10.01.2023: The customer collects 100 points (points collected in January = 100 points) - the customer is upgraded to the Silver tier with an expiration date = 07.03.2023.
  • 15.02.2023: The customer collects 150 points (points collected in February = 150 points) - the threshold for the Silver tier is reached, but the customer already has the Silver tier. Nothing is changed.
  • 08.03.2023: Silver tier expiration - the Silver tier is prolonged till 07.04.2023, as points collected in the current period are insufficient to keep the Silver tier (points collected in March = 0 points), but points collected in the previous period are enough to keep the Silver tier (points collected in February = 150 points).
  • 20.03.2023: The customer collects 150 points (points collected in March = 150 points) - the threshold for the Silver tier is reached, but the customer already has the Silver tier. Nothing is changed.
  • 06.04.2023: The customer collects 100 points (points collected in April = 100 points) - the threshold for the Silver tier is reached, but the customer already has the Silver tier. Nothing is changed.
  • 08.04.2023: Silver tier expiration - the Silver tier is prolonged till 07.06.2023, as points collected in the current period are sufficient to keep the Silver tier (points collected in April = 100 points). Also, points collected in the previous period are sufficient to keep the Silver tier (points collected in March = 150 points), but a better option for the customer is used (Silver tier prolonged till 07.06.2023 instead 07.05.2023).
  • 25.04.2023: The customer collects 450 points (points collected in April = 550 points) - the customer is upgraded to the Gold tier with an expiration date = 07.06.2023.
  • 18.05.2023: The customer collects 100 points (points collected in May = 100 points) - the threshold for the Silver tier is reached, but the customer already has the higher tier (Gold). Nothing is changed.
  • 08.06.2023: Gold tier expiration: the customer is downgraded to the Silver tier with an expiration date = 07.07.2023, as points collected in the current period are insufficient to keep the Gold tier (points collected in June = 0 points), but in the previous period the customer collected enough points to get the Silver tier (points collected in May = 100 points).
  • 08.07.2023: Silver tier expiration: the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier), as points collected in the current period (points collected in July = 0 points) and previous period (points collected in June = 0 points) are insufficient to keep the Silver tier.

  • Based on the collected points in a period with a postponed start and expiration at the end of the period with a grace period

In this option, the customer is qualified for the tier once collected points reach the defined threshold in a given period, but the start is postponed till the beginning of the next period. The customer will keep the tier till the end of the period in which the tier was started, plus some additional time (grace period). In this option, the tier is evaluated at the beginning of each period, and as a result, the customer tier can be upgraded (if points collected in a previous period reach the higher tier threshold) or prolonged (if points collected in a previous period reach the current tier threshold). The tier is not downgraded at the beginning of the period. Downgrades happen at the tier expiration date (if points collected in a previous period do not reach the current tier threshold).

Example:

  • 10.01.2023: The customer collects 100 points (points collected in January = 100 points) - the customer reaches the Silver tier threshold, but the start is postponed till the beginning of the next period (February).
  • 01.02.2023: Beginning of the new period: February - the customer is upgraded to the Silver tier with an expiration date = 07.03.2023 based on the points collected in the previous period (points collected in January = 100 points).
  • 11.02.2023: The customer collects 250 points (points collected in February = 250 points) - the customer reaches the Silver tier threshold, but the Silver tier expiration date is not changed, as it is postponed till the beginning of the next period (March).
  • 01.03.2023: Beginning of the new period: March - the Silver tier is prolonged till 07.04.2023 based on the points collected in the previous period (points collected in February = 250 points).
  • 01.04.2023: Beginning of the new period: April - the customer does not collect any points in the previous period (points collected in March = 0 points) but is not downgraded to the Basic tier yet, as the Silver tier has a longer expiration date (07.04.2023). 
  • 04.04.2023: The customer collects 250 points (points collected in April = 250 points) - the customer reaches the Silver tier threshold, but the Silver tier expiration date is not changed, as it is postponed till the beginning of the next period (May).
  • 08.04.2023: Silver tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier) based on the points collected in the previous period (points collected in March = 0 points).
  • 25.04.2023: The customer collects 300 points (points collected in April = 550 points) - the customer reaches the Gold tier threshold, but the start is postponed till the beginning of the next period (May).
  • 01.05.2023: Beginning of the new period: May - the customer is upgraded to the Gold tier with an expiration date = 07.06.2023 based on the points collected in the previous period (points collected in April = 550 points).
  • 18.05.2023: The customer collects 200 points (points collected in May = 200 points) - the customer reaches the Silver tier threshold, but nothing is changed as the start is postponed till the beginning of the next period (June).
  • 01.06.2023: Beginning of the new period: June - the customer does not collect in the previous period required points to prolong the Gold tier (points collected in May = 200 points) but is not downgraded to the Silver tier yet, as the Gold tier has a longer expiration date (07.06.2023). 
  • 08.06.2023: Gold tier expiration - the customer is downgraded to the Silver tier with an expiration date = 07.07.2023 based on the points collected in the previous period (points collected in May = 200 points).
  • 01.07.2023: Beginning of the new period: July - the customer does not collect any points in the previous period (points collected in June = 0 points) but is not downgraded to the Basic tier yet, as the Silver tier has a longer expiration date (07.07.2023). 
  • 08.07.2023: Silver tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier) based on the points collected in the previous period (points collected in June = 0 points).

  • Based on the collected points in a period with a postponed start and expiration at the end of the next period with a grace period

In this option, the customer is qualified for the tier once collected points reach the defined threshold in a given period, but the start is postponed till the beginning of the next period. The customer will keep the tier till the end of the next period from which the tier was started, plus some additional time (grace period). In this option, the tier is evaluated at the beginning of each period, and as a result, the customer tier can be upgraded (if points collected in a previous period reach the higher tier threshold) or prolonged (if points collected in a previous period reach the current tier threshold). The tier is not downgraded at the beginning of the period. Downgrades happen at the tier expiration date (if points collected in a previous period do not reach the current tier threshold).

Example:

  • 10.01.2023: The customer collects 100 points (points collected in January = 100 points) - the customer reaches the Silver tier threshold, but the start is postponed till the beginning of the next period (February).
  • 01.02.2023: Beginning of the new period: February - the customer is upgraded to the Silver tier with an expiration date = 07.04.2023 based on the points collected in the previous period (points collected in January = 100 points).
  • 11.02.2023: The customer collects 250 points (points collected in February = 250 points) - the customer reaches the Silver tier threshold, but the Silver tier expiration date is not changed, as it is postponed till the beginning of the next period (March).
  • 01.03.2023: Beginning of the new period: March - the Silver tier is prolonged till 07.05.2023 based on the points collected in the previous period (points collected in February = 250 points).
  • 01.04.2023: Beginning of the new period: April - the customer does not collect any points in the previous period (points collected in March = 0 points) but is not downgraded to the Basic tier yet, as the Silver tier has a longer expiration date (07.05.2023). 
  • 04.04.2023: The customer collects 250 points (points collected in April = 250 points) - the customer reaches the Silver tier threshold, but the Silver tier expiration date is not changed, as it is postponed till the beginning of the next period (May).
  • 25.04.2023: The customer collects 300 points (points collected in April = 550 points) - the customer reaches the Gold tier threshold, but the start is postponed till the beginning of the next period (May).
  • 01.05.2023: Beginning of the new period: May - the customer is upgraded to the Gold tier with an expiration date = 07.07.2023 based on the points collected in the previous period (points collected in April = 550 points).
  • 18.05.2023: The customer collects 200 points (points collected in May = 200 points) - the customer reaches the Silver tier threshold, but nothing is changed as the start is postponed till the beginning of the next period (June).
  • 01.06.2023: Beginning of the new period: June - the customer does not collect in the previous period required points to prolong the Gold tier (points collected in May = 200 points) but is not downgraded to the Silver tier, as the Gold tier has a longer expiration date (07.07.2023). 
  • 01.07.2023: Beginning of the new period: July - the customer does not collect any points in the previous period (points collected in June = 0 points) but is not downgraded to the Basic tier yet, as the Gold tier has a longer expiration date (07.07.2023). 
  • 08.07.2023: Gold tier expiration - the customer is downgraded to the Basic tier (for tier started from 0 points, the expiration date is not set, as the customer will never lose that tier) based on the points collected in the previous period (points collected in June = 0 points).

Interaction Between Auto-Redeem and Loyalty Tiers

The Auto-Redeem feature operates before loyalty tier checks are performed. This means that if you have a configuration like Auto-Redeem = 100 points and Tier X = 100 points (based on points balance), a customer will never reach that tier. This happens because the points will be automatically spent through Auto-Redeem before the balance is checked for tier qualification.

However, for loyalty tiers based on points collected within a period, Auto-Redeem does not interfere. Since these tiers are based on the total points earned rather than the current balance, the fact that points are automatically redeemed does not impact the number of points collected during a given period.

As a general recommendation, it is advised not to define tiers based on points balance in combination with Auto-Redeem, as it may create conflicts and reduce the effectiveness of the tier system.

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