Create higher engagement by providing greater access to benefits associated with higher tiers. Customers incrementally increase in stature as they are granted ever more exclusive brand experiences.

Customer retention improves with tier-based programs, because they stay interested for an extended period of time. Customers gain a sense of achievement every time they reach a higher tier level. This motivates customers to keep progressing up the ranks.

Enhance the customer experience by segmenting audiences with the greatest precision. Building targeted segments allows deeper analysis of customer activity, which, in turn, enables the most relevant engagement.

People are more inclined to avoid losing something of value than to acquire new things. So members can be more focused on retaining their current level than on reaching a higher level.

Establish a competitive edge by offering more compelling, more challenging high-tier benefits. Discourage loyal high achievers from switching to a competitor by requiring greater effort to obtain top-tier benefits.