Summary

The content of this document pertains to programs that are using Hierarchy Management Groups and Multiple Point Buckets (MPB) in their loyalty strategy.

Hierarchy Management is based on the concept of multiple loyalty members forming a group. The loyalty group is made up of several individual members whose individual loyalty points are combined and whose combined loyalty points allow them to raise their status faster and enjoy enhanced benefits such as upgraded tier benefits as a group.

The group tier status is determined by the requirements configured in the loyalty program based on points earned and spent. All members share the highest tier achieved within a group. Individual tier status can change based on group tier status, but it remains distinct once an individual leaves the group. This system includes both point-based and spend-based tiers.

This document will address how group tiers function for loyalty programs that use multiple-point buckets.

Points Earned and Deducted:

• Points earned in the Multiple Point Buckets (MPB) contribute to group tier upgrades.
• Points deducted from MPB contribute to group tier downgrades.
• Purchases, returns, and cancellations affecting points or MPB points impact group tier upgrades or downgrades.

Tier Inheritance and Group Consistency:

• All members in the group share the highest tier earned by any member within a group.
• All group members have the same tier status as the group itself.
• If a member joins or leaves a group, their points are adjusted to match the group tier if applicable.
• When an individual is no longer part of a group, their tier status will no longer be based on the group status and will be based on their individual points and actions.

Tier Types:

The group tier logic is based on the Tier type Net Earned in the Calendar Year for all point buckets.

All points-based tiers follow this logic:

• The Net Earned in the Calendar Year is the current tier type supported by the logic.

Navigation: Products >Tiers > Add New Tier > General Information

• Toggle the Group Tier switch ON.
• Select the Net Earned in the Calendar Year from the Based on drop-down menu.

Note: As previously stated, Tier logic only works on the selected tier type.

Multi Points Buckets (MPB) in Tiers

Navigation: Products >Tiers >Add New Tier >Tier Milestone

Use case:

The administrator adds the additional tier threshold (additional point bucket), called the Status Points Tier Threshold to the Tier Milestones. They set the point requirement in the Threshold field to 100 points and set the requirement for Status Points to 500. The group must earn at least 100 points and 500 Status Points collectively to achieve the tier.

If the Status Points Tier Threshold is set to 500, and the Threshold is set to 100.

If the member earns 100 points, even if the Threshold is set to 100 the member's Tier is not promoted until they also meet the Status Points Tier Threshold. The Tier remains Silver.

If the member earns 500 points, even if the Status Points Tier Threshold is set to 500 the member's Tier is not promoted until they also meet the point Threshold. The Tier remains Silver.

If the member earns 500 points in the Status Points Tier Threshold bucket and 100 points in the point Threshold bucket, the member's Tier is promoted to Gold.

Programs that leverage multiple point buckets can enable thresholds for each point bucket when configuring Tier Milestones members must meet to achieve the tier.

In this case: Members must meet the requirements of both the Threshold and the Status Points Tier Threshold to attain the desired tier.

500+100=600.

The member’s Tier is promoted when they accumulate 500 points in the Status Points Tier Threshold bucket and 100 points in the Threshold bucket.

Use Case:

• Tier 1: The point Threshold is set to 0 and the Status Point Tier Threshold is set to 100.
• Tier 2: The point Threshold is set to 50 and the Status Point Tier Threshold is set to 300.
• Tier 3: The point Threshold is set to 100 and the Status Point Tier Threshold is set to 500.

All the members in the example below belong to the same hierarchy management group.

1. Member U001 earned 10 points in the point Threshold bucket and 100 points in the Status Point Tier Threshold bucket with Action ID 109. The group now has 10 points and 100 Status Points. Since the point amounts in both buckets fall within the range of Tier 1, the group is assigned to Tier 1.
2. Member U001 earned 30 points in the Threshold bucket and 50 points in the Status Point Tier Threshold bucket with Action ID 100. The group now has 40 points and 150 Status Points. Since the point amounts in both buckets still do not meet the Tier 2 threshold requirements, the group is still assigned to Tier 1.
3. Member U002 earned 30 points in the Threshold bucket and 170 points in the Status Point Tier Threshold bucket with Action ID 100. The group now has 70 points and 320 Status Points. Since the point amounts in both buckets fall within the range of Tier 2, the group is now assigned to Tier 2.
4. Member U003 earned 40 points in the Threshold bucket and 200 points in the Status Point Tier Threshold bucket with Action ID 109. The group now has 110 points and 520 Status Points. Since the point amounts in both buckets fall within the range of Tier 3, the group is now assigned to Tier 3.
5. Member U004 earned 10 points in the Threshold bucket and spent 200 points from the Status Point Tier Threshold bucket with Action ID 148. The group now has 120 points and 320 Status Points. Because the number of Status Points the group has no longer meets the Tier 3 threshold, the group is downgraded to Tier 2.
6. Member U002 spent 110 points from the Threshold bucket and earned 10 points in the Status Point Tier Threshold bucket with Action ID 100. The group now has 10 points and 330 Status Points. Because the number of points the group has no longer meets the Tier 2 threshold, the group is downgraded to Tier 1.

Note: The points spent by members in the same group are subtracted from the group’s total points and the tier milestone is downgraded.

If a member is added or removed from the group, the points are adjusted for the group tier if applicable.

Tier at the individual level displays the status based on the actions of the member. Once the member is separated from the group, the member retains the individual-level tier status.