Summary

Tiers is a hierarchical ranking method used in the Annex Cloud platform to enhance customer loyalty through structured, goal-driven progression. Unlike traditional earn-and-burn loyalty programs, the tiers feature segments members into different levels based on specific metrics such as total spend, number of purchases, or points earned over time.

Each tier in the program is associated with a predetermined milestone that a customer must reach to advance to the next level. As customers move up the tier ladder, they unlock exclusive incentives, such as enhanced rewards, priority services, or special offers. This structure encourages ongoing engagement, as members are motivated to increase their activity to reach higher tiers and access better benefits.

The Tiers feature in the Annex Cloud platform allows Admin users to define, configure, and manage all aspects of a tiered Loyalty Program. This includes setting up the tier structure, establishing milestone criteria, assigning specific benefits and restrictions to each tier, and customizing rules to align with the business's loyalty strategy.

By leveraging tiers, businesses can drive long-term customer engagement, reward high-value members, and create a more personalized loyalty experience.

Navigation: Products > Tiers

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Tiers

The Tier feature enables an administrator to create, maintain, and view existing tiers for the loyalty program.

The Tier feature enables administrators to create, maintain, and view existing tiers for the loyalty program. Admins can define tier structures, configure milestone criteria, assign benefits or restrictions, and manage tier logic to align with business goals.

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1. Add New Tier: Allows administrators to define and create new tiers within the loyalty program.
2. Search: Enables users to locate and view existing tiers in the system using search functionality.

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These are the search criteria that can be used to find specific tiers within the dashboard.

• Name: Enter the name of the tier.
• ID: Enter the unique identifier for the tier.
• Status: Select the tier status from the drop-down menu. Options include On (active) and Off (inactive).
• Milestone: Select the milestone criteria from the drop-down. Then, choose the corresponding Type:
  • Based on Points
  • Based on Action Series
  • Based on Extended Attributes
• Bonus Points: Choose one of the following options from the drop-down:
  • Greater Than: Enter a point value. The system will display tiers that require more points than the entered value.
  • Range: Enter a minimum and maximum value. The system will display tiers that fall within the specified point range.
• Created Within: Select a predefined time range—1 Day, 1 Week, 1 Month, 3 Months, 6 Months, or 1 Year—from the drop-down, or manually select a start and end date using the calendar.

3. Export: Allows the administrator to export the list of existing tiers in Excel or CSV format for reporting or record-keeping purposes.

4. Status: Indicates whether the tier is currently active or inactive.

• When the status is Active:
  The available options are Edit, Deactivate, and User Log.
• When the status is Inactive:
  The available options are Edit, Activate, and User Log.

• Edit: Modify the configuration of an existing tier.
• Deactivate: If the tier is currently Active, this option allows you to deactivate it from the Action column. Click to change the tier status from Active to Inactive. 
• Activate: If the tier is currently Inactive, this option allows you to activate it from the Action column. Click to change the tier status from Inactive to Active. 
• User Log: View the history of all tier configuration changes, including status updates, to track and ensure accountability.

Settings: Allows the administrator to apply additional configurations to customize how tiers operate within the loyalty program.

• Include Action: Enabling this toggle allows the administrator to add specific actions that will be used to configure tier limits. These limits define the maximum number of points a member can earn by performing the added actions.

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Configurations 

Creating a New Tier

To create a new tier:

• Click Add New Tier.
• The tier configuration screen will appear. This screen is divided into four key sections:
  • General Information: Displays the basic tier details, including name, Tier ID (Level), and status
  • Tier Milestone: Defines the criteria that members must meet to qualify for this tier, such as points or spend thresholds, action series, or user attributes.
  • Tier Benefits: Specifies the purchase benefits or tier bonus points that members receive upon reaching this tier. 
  • Tier Limitation: Allows you to configure action expiration and tier point limits.

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1. General Information

In this section, provide the general details required to create a new tier. 

After completing these fields, click Next to proceed to the Tier Milestone screen.

2. Tier Milestone

Define milestones for the new tier. Milestones are thresholds the members must reach to enter the tier. 

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There are three categories to define Tier Milestones.

• Based on Tier Type
• Action series as milestone
• Extended attribute as milestone

Fields and Description:

 

Field	Description
Based on Tier Type
Tier Type	Set the metric to achieve this tier from a list of predefined options. Review definitions for each tier type here: Based on Lifetime Points Based on Available Points Based on Earned Points in the Anniversary Year Based on Earned Points in the Semester Based on Purchase Amount Based on Earned Points in the Calendar Year Based on Purchase Amount in Calendar Year Based on Purchase Amount in Anniversary Year Net Earned in Lifetime Net Earned in the Calendar Year Net Earned in the Anniversary Year Available Points At The End Of The Calendar Year Based On Purchase Amount In The Last 365 Days purchase amount in the calendar quarter. Note: Net Earned Points = Total credit points - Total debit points
Threshold	Based on the selected metric above, enter the metric amount required to complete the milestone.  Enter the required value for the selected metric to complete the milestone.
Action series as milestone
Action Series	Select the relevant Action Series from the drop-down menu. Ensure that the desired actions are already configured before assigning them to tiers.
Extended Attribute as Milestone
Extended Attribute Fields	Extended attributes can serve as criteria for tier milestones. For each attribute category, you must select at least one value only if the extended attribute defines a tier milestone. Extended attributes vary by requirements. All values must be pre-configured before assigning them to tiers.

 

 

 

Definitions:

• Based on Lifetime Points
  Represents the total number of loyalty points credited or accumulated by the member from their opt-in date to the current date. Only credit transactions are considered; debit actions are excluded.
• Based on Available Points
  Calculated as the total points earned (credits) minus total debits (such as returns, expirations, redemptions, manual adjustments, etc.) from the opt-in date to the current date.
• Based on Earned Points in the Anniversary Year
  Total points earned (credits only) within the member’s anniversary year, defined as the 365-day period starting from the opt-in date.
• Based on Earned Points in the Semester
  Total points earned within a six-month semester of the calendar year. There are two semesters:
  • Semester 1: January 1 – June 30
  • Semester 2: July 1 – December 31
• Based on Purchase Amount
  Represents the total amount spent (in currency, not points) over the member’s lifetime, excluding any returns.
• Based on Earned Points in the Calendar Year
  Total points earned (credits only) between January 1 and December 31 of the current calendar year.
• Based on Purchase Amount in the Calendar Year
  The total currency amount spent (excluding returns) from January 1 to December 31 of the current calendar year.
• Based on Purchase Amount in the Anniversary Year
  The total amount spent (currency) minus returns during the member’s 365-day anniversary period starting from the opt-in date.
• Net Earned in Lifetime
  The net total of points earned (credits) minus total debits, excluding debits related to action IDs 106 and 107.
• Net Earned in the Calendar Year
  The net points earned (credits minus debits excluding action IDs 106 and 107) within the calendar year (January 1 to December 31).
• Net Earned in the Anniversary Year
  Total points earned minus debits (excluding actions 106 and 107) during the member’s 365-day anniversary year.
• Available Points at the End of the Calendar Year
  Points balance at the end of the calendar year, calculated as total credits minus all debits (including returns, redemptions, expirations, manual debits, etc.).
• Based on Purchase Amount in the Last 365 Days
  Total amount spent (currency) over the past 365 days from today, excluding any returns.
• Purchase Amount in the Calendar Quarter
  Represents the total amount spent by a r (in currency, not points) minus debits (such as returns) within a specific calendar quarter. This metric supports both tier upgrades and downgrades based on the member’s spend behavior each quarter.

     Calendar Quarters are defined as:

• Q1: January 1 – March 31
• Q2: April 1 – June 30
• Q3: July 1 – September 30
• Q4: October 1 – December 31

Use Case – Tier Upgrade and Downgrade Logic:
     Assume the following tiers are configured based on purchase amount within a calendar quarter:

• Tier 1: $0 – $499
• Tier 2: $500 – $999
• Tier 3: $1,000+

Member Opt-In Date: 02/28/2021

Transactions:

• Purchase 1: 03/01/2021 → $200 → Q1 Spend = $200 → Tier 1
• Purchase 2: 03/15/2021 → $200 → Q1 Spend = $400 → Tier 1
• Purchase 3: 04/21/2021 → $100 → Q2 Spend = $100 → Tier 1
• Purchase 4: 04/24/2021 → $450 → Q2 Spend = $550 → Tier 2

Resulting Tier Progression:

• Tier on 06/30/2021 → Tier 2 (based on Q2 total spend of $550)
• Tier on 09/30/2021 → Tier 2 (no additional purchases in Q3, but no downgrade yet)
• Tier on 10/01/2021 → Tier 1 (downgrade occurs as Q3 purchases did not meet tier 2 threshold)

  3. Tier Benefits

Add details to define Tier Benefits. These benefits are rewarded to members upon achieving the tier level.

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Fields and Description:

Field	Description
Purchase Benefits
Purchase bracket type	Select from a list of predefined purchase bracket types: Default: Configure rewards based solely on the purchase amount using a defined purchase ratio. Standard: Set a purchase ratio along with a threshold multiplier and a maximum spend amount to control how rewards are calculated. Purchase Ratio The Purchase Ratio defines how many loyalty points a member earns based on their purchase amount. It acts as a multiplier for awarding points. Example: Purchase Ratio = 2 Purchase Amount = $500 Points Awarded = 1,000 points (500 × 2 = 1,000) Note: Members must spend in multiples of the defined ratio value to receive the corresponding points.   Threshold Multiplier Amount The Threshold Multiplier Amount is the maximum portion of a purchase to which the Purchase Ratio can be applied during a single action. Example: Purchase Ratio = 2 Threshold Multiplier Amount = $500 Purchase Amount = $700 Points Awarded = First $500 → 500 × 2 = 1,000 points Remaining $200 → 200 × 1 = 200 points Total = 1,200 points The Purchase Ratio is only applied to the first $500. The remaining amount earns points at a standard 1:1 ratio.   Maximum Spend Amount The Maximum Spend Amount is the upper limit of a member’s purchase that qualifies for point earning. Any amount beyond this cap does not earn additional points. Example: Purchase Ratio = 2 Maximum Spend Amount = $500 Purchase Amount = $700 Points Awarded = Only on the capped $500 → 500 × 1 = 500 points The extra $200 is ignored Total = 500 points Custom: Fully customize tier benefits by setting configurable purchase amount ranges, allowing you to define reward points using either a purchase ratio or flat points. Purchase Bracket Type This option allows you to define tiered benefit brackets based on purchase amounts. Fields: Min. Amount: Minimum purchase amount for the bracket Max. Amount: Maximum purchase amount for the bracket Points/Ratio: The reward value assigned to the bracket Valid Reward Types: Purchase Ratio: Multiplies the purchase amount to determine points Flat Points: A fixed number of points awarded Note: Administrators can configure multiple lookup ranges and customize benefits based on member spending behavior.
Tier Bonus
Tier Bonus	Enter a numeric value to define the Tier Bonus. Members will receive these additional points as a one-time reward upon entering the specified tier.
Award Tier Bonus multiple times	Enable this option to award bonus points to the loyalty member each time they achieve the tier. If a member's point balance drops below the threshold due to point usage or expiration, they may be moved to a lower tier. If the member later earns enough points to qualify for the higher tier again, the tier bonus will be awarded again. If this option is disabled, the tier bonus will be granted only once during the member’s entire loyalty lifetime—regardless of how many times they re-enter the tier.
Points Expiration	Select how bonus points should expire—either using a rolling period or a calendar-based timeline. This helps manage reward validity and encourages timely member engagement. Expiration Methods: Rolling: Define the number of rolling days after which bonus points will expire. Example: If you set the expiration to 30 rolling days and a member earns points on June 1, those points will expire on July 1. Calendar: Set the expiration of bonus points based on a calendar cycle: week, month, or year. i. Calendar > Week (Monday–Sunday) > 1 Week: If a member earns points on any day of the week, those points expire on the upcoming Sunday. Example: If a member earns points on Wednesday, June 5, those points expire on Sunday, June 9. ii. Calendar > Month > 2 Months: Points earned in a calendar month expire at the end of the second month from the earning month. Example: If a member earns points in August, those points expire on September 30. iii. Calendar > Year > 1 Year: Points earned in a calendar year expire at the end of that year. Example: If a member earns points on May 2, 2023, those points expire on December 31, 2023. Extended Calendar Expiry Option: Annex Cloud supports bonus point expiration settings up to 10 years from the earning date. You can select any calendar year duration between 1 to 10 years. Example: A member earns points on May 2, 2023. If the expiration is set to 3 years, the points will expire on December 31, 2025. If set to 10 years, the expiration date will be December 31, 2033.

 

 

 

 

 

 

 

 

Click Next to proceed. The Tier Limitation screen will appear.

4. Tier Limitation

Add settings for point expiration and limitations under Tier Limitation:

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Fields and Description:

Field	Description
Action Point Expiration	Define how long action points remain valid by selecting an expiration timeline—either a rolling period or a calendar-based schedule. Rolling: Specify the number of rolling days after which the action points will expire from the date they are earned. Calendar: Set the expiration of action points based on a calendar period—week, month, or year. Points will expire at the end of the selected calendar cycle following the date they were earned.
Override Action Point Limit	Enable this option to override the default point limit set for an action with a tier-specific limit. If an action has a predefined maximum point limit (e.g., 200 points), enabling this toggle allows the tier configuration to apply its own limit instead. This means that even if the action has already reached its global cap, members can still earn additional points based on the tier's defined limit. Example: An action has a global limit of 200 points. If this override is enabled and the tier allows 300 points for the same action, members in that tier can earn up to 300 points, bypassing the original 200-point cap.
Maximum Number of Points	Enter the maximum number of points a member can earn for the associated action within the tier. The value entered here overrides the point limit configured at the action level.
Tier Limit	Define how often the tier-specific point limit resets, allowing members to earn points again once the interval ends. Reset Interval Options: Rolling: Enter the number of rolling days after which the tier point limit resets. Example: If set to 30 days, the limit resets every 30 days from the member’s last eligible activity. Calendar: Set the tier point limit to reset based on a specific calendar cycle: Day Week (e.g., Monday to Sunday) Month Year Anniversary (365 days from the member's opt-in date) At the end of the selected interval, the point limit is refreshed, and members can earn up to the maximum tier-defined points again.

 

 

Click Add Tier after entering all the details. A confirmation pop-up will appear with the message:
“Congratulations! Tier details were added successfully.”

Editing an existing tier

• In the Action column, click the Edit icon. The tier configuration screen will appear, allowing you to edit the existing tier information.

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Navigate to the required section of the tier page by clicking Next to edit the information.

On the tier benefits page, click update tier to save your changes. The tier configuration will be updated accordingly.

Note: These tier settings are also influenced by the tier settings found under Additional Loyalty Settings.

Tier Audit

In the Action column, click Audit. The Tier Log screen will appear, showing detailed records of events related to the existing tier.

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Fields and Descriptions:

FAQs

Q: What is the Tiers feature, and how is it different from a traditional earn-and-burn loyalty program?
A: Tiers are a hierarchical ranking system that groups loyalty members into different levels based on criteria such as total spend, points earned, or other defined metrics over a specific period. 

Unlike a traditional earn-and-burn program, where members primarily earn and redeem points, a tier-based program provides members with a clear progression path. As members meet the required criteria, they can move to higher tiers and unlock additional benefits.

Q: Who can create and manage tiers?
A: The Tiers feature allows Admin users to define the tier structure, configure the criteria or milestones required to reach each tier, and assign the appropriate benefits to members at each tier level.

Q: What are the four sections of the tier configuration screen?
A: General Information, Tier Milestone, Tier Benefits, and Tier Limitation. Each is completed in order by clicking Next, and the final step (on the Tier Benefits screen when editing) is Update Tier to save changes.

Q: What are the three ways a Tier Milestone can be defined?
A: Based on Tier Type (a predefined metric like points or purchase amount), Action Series (a configured sequence of actions), or Extended Attribute (member attribute values). If more than one sub-section has a value, they are combined using an "And" condition.

Q: What's the difference between Lifetime Points, Available Points, and Net Earned Points?
A: Lifetime Points include only credit transactions from the member’s opt-in date up to the current date. 

Available Points are calculated by subtracting all applicable debit transactions, such as returns, expirations, redemptions, and manual adjustments, from the total credited points. 

Net Earned Points = Total Credit Points − Total Debit Points, for this calculation, debits associated with Action IDs 106 and 107 should be excluded.

Q: Can a member be downgraded while still in their tier maintenance period?
A: Only if the Disregard Maintain Period for Downgrade flag is enabled in General Information. Otherwise, members are protected from downgrade until the maintenance period ends.

Q: What happens if "Award Tier Bonus multiple times" is left disabled?
A: The tier bonus is granted only once in the member's entire loyalty lifetime, no matter how many times they re-enter that tier. If enabled, the member receives the bonus again each time they re-qualify for the tier after having dropped out of it.

Q: What's the difference between Rolling and Calendar expiration for points?
A: Rolling expiration counts a fixed number of days from the date points are earned (e.g., 30 rolling days from June 1 expires July 1). Calendar expiration ties expiration to a fixed cycle — week, month, or year — so all points earned within that cycle expire together at its end, regardless of the exact earn date.

Q: What does Override Action Point Limit do?
A: It lets a tier apply its own point cap for an action instead of the action's global limit. For example, if an action normally caps at 200 points but a tier's override allows 300, members in that tier can earn up to 300 points for that action even after the global cap would normally have stopped them.

Q: Where can I see the history of changes made to a tier?
A: Click the three-dot menu in the Action column and select User Log (also referred to as Tier Audit). It shows the date of each change, who made it, what was changed, the old and new values, and the source IP address.

Glossary