Tier-Based Loyalty

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Example(s): Starbucks Gold Status, Clean Juice VIG

 

Overview

  • A Tier-based loyalty system encourages patrons to make repeat purchases in order to earn ongoing perks as well as one-time rewards associated with a higher tier.
  • Tier-based loyalty can be used in combination with Credit-based or Bank-based loyalty systems.
  • Lunchbox can theoretically support an infinite number of tiers — however, we recommend Restaurant Partners to use no more than 3 total tiers (including the base tier) for optimal usability for Patrons.
  • Lunchbox's loyalty programs with tiers are based on lifetime spend and at this time, patron's points continue to accrue over time and never expire. However, we are working on a solution to allow restaurant partners the option to expire loyalty points after a certain amount of time (i.e. every 12 months).

 

Detailed Description

Tier Qualification

  • The patron's spending habits are being tracked for a specific, predefined period of time (typically every 12 months post-sign-up).
  • Once they pass the pre-defined spend threshold for a tier, they qualify to receive and redeem rewards associated with that tier.

Types of Rewards

Tier loyalty award has two workflows:

  • Aggregate rewards:
    • With this system, the patron progresses from one tier to the higher tier, and aggregate earned "perks." Once perks are earned, they do not expire. The basic perks are usually available for certain circumstances (rather than getting specific features unlocked):
      • Bronze tier: birthday reward.
      • Silver tier: free refills.
      • Gold tier: ability to skip the line.
  • Clean Juice Example

Loyalty-Type-Tier-Based_1.jpg

Example of combined Aggregate tier-based system (Juice beginner status vs. V. I. G. status) and Credit-based system that resets annually.

 

Rewards expiration

  • By the current setup, the aggregated rewards do not expire, but in the future, we will work on creating several rules and possibilities for single-use rewards and cover different expiration date scenarios (according to the clients' needs):
    • Rolling 7 or 30-day cycle.
    • Weekly on a specific day (default is Monday).
    • Monthly on the 1st of the month.
    • Annually on the 1st of the year.
    • Annually on the anniversary of when the customer signed up.
    • Lifetime, which never resets.

Interaction with Other Lunchbox Loyalty Systems & Components

Tiers + Credit- or Bank-Based Loyalty

  • Credit-Based or Bank-Based Loyalty systems can be set up so that point multipliers (points earned per dollar spent) vary depending on the Patron's tier.
  • Credit-Based Loyalty system can be configured so that the reward received at the spend threshold is higher for Patrons in higher tiers.
    • Sticky's Finger Joint Example
      • Lil Dipper (base tier): Spend $80, get $5.
      • Flying Saucer ($300 annual spend): Spend $80, get $6.
      • Pro Dunker ($600 annual spend): Spend $80, get $7.
      • Too Much Sauce ($1,200 annual spend): Spend $80, get $8.

Restaurant Experience

Set-up and Configuration

  • For details on how to set up Tiers in combination with a credit-based system, please visit the Configuration section of the Credit-Based Loyalty page.
  • Details on how to set up Tiers in combination with a bank-based system is coming soon.

Patron Experience

  • When single-use rewards are earned/redeemed at each tier, they will be added to the customer’s wallet.

 

 

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