{"id":1889,"date":"2024-08-29T04:26:07","date_gmt":"2024-08-29T03:26:07","guid":{"rendered":"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/tiered-loyalty-programmes-strategies-for-driving-customer-engagement-and-retention\/"},"modified":"2025-12-02T10:10:10","modified_gmt":"2025-12-02T10:10:10","slug":"tiered-loyalty-programmes-strategies-for-driving-customer-engagement-and-retention","status":"publish","type":"post","link":"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/tiered-loyalty-programmes-strategies-for-driving-customer-engagement-and-retention\/","title":{"rendered":"Tiered loyalty programmes: strategies for driving customer engagement and retention"},"content":{"rendered":"<div class=\" has-content-align-left has-overlay has-overlay--dark alignwide wp-block-biw-block-theme-hero\">\n\t<div class=\"biw-hero__grid\">\n\t\t\t\t\t<div class=\"biw-hero__breadcrumbs\">\n\t\t\t\t<div id=\"breadcrumbs\" class=\"breadcrumb-nav__wrapper\"><span class=\"breadcrumb-nav\"><span><a href=\"https:\/\/www.biworldwide.com\/eu\/\">Home<\/a><\/span><\/span><\/div>\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"biw-hero__media has-dynamic-border-radius\">\n\t\t\t\t\t\t\t\t\t<div class=\"biw-hero__overlay overlay-dark\"><\/div>\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/16\/2025\/02\/18.png\" alt=\"\" class=\"biw-hero__bg-image\" style=\"object-position: 50% 50%;\">\t\t\t<\/div>\n\t\t\t\t<div class=\"biw-hero__content\">\n\t\t\t\t\t\t<h1 class=\"biw-hero__title\" style=\"line-height: 1.2\">\n\t\t\t\tTiered loyalty programmes: strategies for driving customer engagement and retention\t\t\t<\/h1>\n\t\t\t\t\t\t\t<h2 class=\"biw-hero__subtitle\">\n\t\t\t\t\tAug 19, 2024\t\t\t\t<\/h2>\n\t\t\t\t\t\t\t\t\t\t<div class=\"biw-hero__text\">\n\t\t\t\t\t\n\n<p>Discover how tiering can maximise your channel incentive and loyalty programmes. Learn about attitudinal and behavioural loyalty and the strategies we use to build programmes that align with our clients&#8217; business goals and drive customer engagement.<\/p>\n\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<p>In the world of&nbsp;channel partner incentives, the trend is to encourage specific behaviours and personalise&nbsp;<a href=\"https:\/\/www.biworldwide.com\/eu\/rewards-marketplace\/\">rewards<\/a>&nbsp;beyond just hitting performance targets for rebates.<\/p>\n\n\n\n<p>However, when it comes to building end-customer loyalty through a distribution channel, a well-designed tiering system remains one of the most effective and easy-to-understand structures. Let\u2019s explore how we can leverage tiering to help clients maximise their channel incentive and loyalty programmes.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/tiered-loyalty-programmes-strategies-for-driving-customer-engagement-and-retention\/#what-is-tiering-in-channel-loyalty-programmes\">What is tiering in channel loyalty programmes?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/tiered-loyalty-programmes-strategies-for-driving-customer-engagement-and-retention\/#getting-the-most-from-your-channel-loyalty-programme-tiers\">Getting the most from your channel loyalty programme tiers?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/tiered-loyalty-programmes-strategies-for-driving-customer-engagement-and-retention\/#using-a-loyalty-framework\">Using a loyalty framework<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/tiered-loyalty-programmes-strategies-for-driving-customer-engagement-and-retention\/#the-four-stage-loyalty-model\">The four-stage loyalty model<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.biworldwide.com\/eu\/EPiServer\/Cms\/%22#5-tactics-to-influence-channel-loyalty\">5 tactics to influence channel loyalty<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">What&#8217;s tiering in channel loyalty programmes?<\/h2>\n\n\n\n<p id=\"what-is-tiering-in-channel-partner-loyalty-programmes\">Tiering is a method of structuring loyalty programmes where customers are placed into different levels or \u201ctiers\u201d based on their engagement or purchase behaviour. Each tier offers different benefits, with higher tiers providing more attractive rewards.<\/p>\n\n\n\n<p>Examples of successful loyalty programmes include&nbsp;<strong>Starbucks Rewards<\/strong>&nbsp;which offers a tiered programme where members earn stars for purchases with tiers offering different benefits such as free refills, birthday rewards, and personalised offers based on their purchase behaviour.<\/p>\n\n\n\n<p>Similarly, the&nbsp;<strong>Delta SkyMiles programme&nbsp;<\/strong>includes tiers like Silver, Gold, Platinum, and Diamond Medallion where members earn Miles and enjoy benefits such as priority boarding, access to lounges, and free checked luggage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">Getting the most from your channel loyalty programme tiers<\/h2>\n\n\n\n<p id=\"getting-the-most-from-your-channel-loyalty-programme-tiers\">At BI WORLDWIDE, our approach to designing an incentive loyalty programme starts with understanding:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Client\u2019s Vision of Loyalty&nbsp;<\/strong>&#8211; What does end-customer loyalty look like for the client, and where are they on their loyalty journey?<\/li>\n\n\n\n<li><strong>Historical Data&nbsp;<\/strong>&#8211;&nbsp;What does past purchase behaviour tell us? Are there regional differences?<\/li>\n\n\n\n<li><strong>Effective Timing&nbsp;<\/strong>&#8211;&nbsp;At what point in the customer relationship is the programme most effective, and how do rewards positively influence behaviour?<\/li>\n<\/ul>\n\n\n\n<p>Establishing tier levels and their benefits is crucial for setting realistic ROI goals. The benefits should be appropriate, motivational, and the tiers achievable. Balancing the value generated by product margins and the timing of benefits is key to securing customer loyalty.<\/p>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">Using a loyalty framework<\/h2>\n\n\n\n<p>We use a loyalty framework to determine the programme\u2019s priorities. Are we aiming to shift business customers from just liking the brand to consistently buying from it? Or are we rewarding consistent loyalty and encouraging advocacy? The right structure can achieve all these goals, but the benefits must be supported by the margins produced.<\/p>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">The four-stage loyalty model<\/h2>\n\n\n\n<p id=\"the-four-stage-loyalty-model\">One example foundational framework is&nbsp;<a href=\"https:\/\/www.researchgate.net\/figure\/Four-Stage-Loyalty-Model-Oliver-1997_fig1_227436471\">Oliver\u2019s<\/a>&nbsp;model that describes customer loyalty progression through four stages:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Cognitive Loyalty (Attitudinal)<\/h3>\n\n\n\n<p>Partners have a positive attitude towards the brand based on available information but haven\u2019t taken action yet.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: An installer knows a brand has high-quality products and good service but hasn\u2019t started using them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Affective Loyalty (Attitudinal)<\/h3>\n\n\n\n<p>Positive experiences lead to satisfaction and preference for the brand.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: After using the brand\u2019s products and experiencing excellent service, the installer prefers this brand over others.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/18\/2025\/03\/Landscape-graphs-and-diagrams-for-new-website-11-2.png\" alt=\"Infographic depicting four types of loyalty: Cognitive, Affective, Conative, and Action. Each type shows an icon and a brief description below, illustrating different stages of brand commitment and engagement.\" class=\"wp-image-2718\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">3. Conative Loyalty (Behavioural)<\/h3>\n\n\n\n<p>Partners show a strong intention to continue supporting the brand.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: The installer recommends the brand to others and is committed to using it, even when faced with minor issues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Action Loyalty (Behavioural)<\/h3>\n\n\n\n<p>Partners demonstrate commitment through repeat purchases and advocacy.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: The installer consistently chooses this brand for all projects and promotes it to peers, not wanting to lose the rewards and benefits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">5 tactics to influence channel loyalty<\/h2>\n\n\n\n<p id=\"5-tactics-to-influence-channel-loyalty\">To move channel partners through these stages and tiers, we use specific tactics that align with the tiering structure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Influencing attitudinal loyalty<\/h3>\n\n\n\n<p>Attitudinal loyalty is about partners\u2019 positive perceptions and attitudes towards the brand&nbsp;<strong><u>before<\/u><\/strong>&nbsp;they take any action. Tactics here are designed to help build a strong emotional connection and positive perception:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>1. Referrals (Social Proof)<\/strong><\/h4>\n\n\n\n<p>Encourage existing partners to recommend your brand to others, enhancing their perception and commitment. This can be particularly effective in lower tiers to help partners move up to higher tiers by increasing their engagement and loyalty.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: Offering a bonus for every new partner they refer to your programme can help partners in the lower tiers advance to higher tiers.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>2. Service Focus (Confirmation Bias)<\/strong><\/h4>\n\n\n\n<p>Highlight benefits and superior service to affirm their choice, especially in lower tiers to develop behavioural loyalty. This helps new partners feel more confident and motivated to reach higher tiers.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: Spotlighting success stories from other partners can reinforce positive perceptions and encourage partners to strive for higher tiers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Influencing behavioural loyalty<\/h3>\n\n\n\n<p>Behavioural loyalty, characterised by consistent repeat purchases and commitment to the brand, is the ultimate goal. The&nbsp;<a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/employee-engagement\/A-simple-behaviour-change-personal-bias\/\">FOGG Behaviour Model<\/a>&nbsp;explains how behaviour is influenced by motivation, ability, and triggers. For a behaviour to occur, these elements must converge, and this convergence can be strategically aligned with tier progression.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>3. Build anticipation<\/strong><\/h4>\n\n\n\n<p>Create emotional triggers that generate hope for a positive outcome or fear of a negative one. This can motivate partners to advance to higher tiers to avoid missing out on exclusive benefits.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>:&nbsp;Tease exciting new features (hope) or emphasise the risks of missing out (fear), encouraging partners to aim for higher tiers.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>4. Create belonging<\/strong><\/h4>\n\n\n\n<p>Leverage social proof and the desire to belong to a group. Higher tiers can be positioned as exclusive communities, motivating partners to advance. Importantly, consideration should be made as to how you maintain a sense of exclusivity in higher tiers to not demotivate members through over subscription.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: Showcase testimonials from satisfied customers or highlight the benefits of being part of an exclusive community, encouraging partners to move up tiers.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>5. Become a facilitator<\/strong><\/h4>\n\n\n\n<p>Make desired behaviour easier by increasing ability. This can help partners in lower tiers gain the skills and confidence needed to reach higher tiers.<\/p>\n\n\n\n<p><strong><em>Example<\/em><\/strong>: Provide step-by-step guides and personal support to help partners in lower tiers to advance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">Strengthen loyalty throughout your partner journey<\/h2>\n\n\n\n<p>BI WORLDWIDE research, conducted with Kantar, showed that&nbsp;<a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/how-to-create-frictionless-channel-incentive-programmes\/\">operational excellence<\/a>&nbsp;is key to partner (or B2B customer) satisfaction. This means for an incentive or loyalty programme to be effective it must be simple to understand, and the benefits must be well-perceived and valuable to the recipients.<\/p>\n\n\n\n<p>Added to this, other key considerations such as tier qualification criteria and impactful communications help brands create effective\u00a0<a href=\"https:\/\/www.biworldwide.com\/eu\/channel-solutions\/\">channel incentive and loyalty programmes<\/a>\u00a0that drive high levels of engagement and loyalty.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left  has-gradient-fill has-gradient-fill-orange\">Ready to take your channel incentive and loyalty programme to the next level?<\/h2>\n\n\n\n<p class=\"has-text-align-left\">At BI WORLDWIDE, we&#8217;re continuously reviewing research and programme insights to ensure<a href=\"https:\/\/www.biworldwide.com\/eu\/channel-solutions\/\">\u00a0our approach<\/a>\u00a0to channel programme design is effective at motivating behaviour and measurable results for our clients.<\/p>\n\n\n\n<div class=\"wp-block-group  layout-columns-10 has-global-padding is-layout-constrained wp-container-core-group-is-layout-0b5f5b40 wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-base-two-background-color has-background  has-dynamic-border-radius  layout-columns-4 has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-645d8aa7 wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--60);padding-right:var(--wp--preset--spacing--60);padding-bottom:var(--wp--preset--spacing--60);padding-left:var(--wp--preset--spacing--60);background-image:url(&#039;https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/16\/2025\/03\/CTA1.png&#039;);background-position:50% 50%;background-size:cover;\">\n<h2 class=\"wp-block-heading\">Lets discuss your channel challenges<\/h2>\n\n\n\n<p>Contact us\u00a0today to learn how, via our\u00a0<a href=\"https:\/\/www.biworldwide.com\/eu\/channel-smart\/\">channel engagement solution<\/a>, we can help design and deliver a programme that drives results.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-secondary-fill\"><a aria-controls=\"modal-header-lead-gen\" aria-haspopup=\"dialog\" href=\"#\" modal-id=\"header-lead-gen\" role=\"button\" tabindex=\"0\" class=\"wp-block-button__link wp-element-button modal-trigger core-button-trigger\">Get in touch<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover how tiering can maximise your channel incentive and loyalty programmes. Learn about attitudinal and behavioural loyalty and the strategies we use to build programmes that align with our clients&#8217; business goals and drive customer engagement.<\/p>\n","protected":false},"author":18,"featured_media":1892,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"associated_experts":[],"featured_image_focal_point":{"x":0.5,"y":0.5},"footnotes":""},"content-topic":[43,45],"problem-space":[63,64],"wf_post_folders":[],"class_list":["post-1889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","content-topic-incentives-and-rewards","content-topic-loyalty-and-retention","problem-space-channel-performance","problem-space-customer-loyalty"],"featured_media_global":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tiered loyalty programmes: strategies for driving customer engagement and retention<\/title>\n<meta name=\"description\" content=\"Discover how tiering can maximise your channel incentive and loyalty programs. 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