How to set up the VIP Tier

How to set up the VIP Tier Program

VIP Program – an essential tool in incentivizing repeat purchases by rewarding loyal customers. By offering exclusive benefits, discounts, or early access to new products, stores can encourage customers to return and continue shopping.

Introduction

Understand the mechanism behind this feature and learn how to set up an effective VIP Tier program.

Overview

General settings

Entry method
Duration

VIP Tier settings

VIP Tier entry rewards

VIP Tier emails

How customers see the VIP Tier Program

General settings

To begin setting up your VIP program, let’s start with the general settings with two main functions: Entry method and Duration.

A. Entry method

Points Earned:

Customers use accumulated points earned to participate in the VIP Tier program. Points accumulated must be equal to or greater than the Entry Requirement to reach a tier.

Money Spent:

Customers use the accumulated spending to participate in the VIP Tier program. The amount spent accumulated must be equal to or greater than the entry requirement to reach a tier.
The currency is automatically detected according to the default currency of the merchant.
Customers’ spending will be counted in their tier progress once the order is fulfilled.

NOTE: If a customer reaches a Tier but later cancels or returns an order, they will be moved to the closest Tier that matches their updated points or spending. This ensures their Tier status accurately reflects their current progress.

B. Duration

Merchants can choose between:

Lifetime: Customers keep their tier status permanently.
Rolling year: Customers’ tier status lasts 365 days from their latest Tier upgrade. Each Tier upgrade renews the 365-day period. If they don’t upgrade within that period, they are downgraded to the lowest tier.

Example:

Single-tier upgrade: A customer uprgades to Silver Tier on Jan 1, 2024. If they don’t upgrade within 365 days, they are downgraded to the lowest tier on Dec 31, 2024.
Multiple tier upgrades: A customer upgrades to Silver Tier on Jan 1, 2024, then upgrades to Gold Tier on June 1, 2024. Their Gold Tier status is extended until June 1, 2025.

Note: Upon resetting the tier after 365 days, all customers will be placed into the lowest tier. If the lowest tier also has an entry requirement, and the customer has not achieved enough points or spent enough money, he/she will be labeled as ‘Unranked’.

VIP Tier settings

To start your VIP program, you need to set up the tier and its requirements. With BON Loyalty, there will be three default tiers: Gold, Silver, and Entry. You can always edit the name, logo, and entry requirements by clicking on the tier in the table.

You can also remove a tier from the tier list. By deleting a tier, all members belonging to that tier will:

The system will automatically detect which tier is most suitable for the customers, place them in that tier and members do not receive the entry reward again.
While waiting in the queue, if merchants add a new tier that is more suitable for the customers, the customers need to sign in and perform an action for the system to update them into a new tier.

For entry requirements, depending on the type of entry method that you choose (points earned or money spent), you can set a suitable benchmark for each tier, even the Entry one.

VIP Tier entry rewards

The entry rewards for a tier include four types: amount discount, percentage discount, free product, and shipping discount. There is no limit to the number of entry rewards.

These entry rewards can be used once or be reusable. For each type, you can set up a minimum order value that customers need to reach to use the reward, an expiration date, and whether it can be combined with other discount codes.

The VIP “Complete an Order” benefit is a noticeable benefit you can consider offering your members. This benefit allows customers to multiply the points earned whenever they place and fulfill an order.

Note: The extra points earned from the VIP benefits will not be counted towards the total points for tier evaluation. The reason for this is to ensure fairness and the shop owner’s rights. A customer’s upgrade depends on the actual amount they’ve spent rather than any extra rewards given by the merchant.