Tier downgrade is lowering customers' loyalty tiers for descending in their transaction activities such as visits, purchases, and points. An org can enable Tier Downgrade if required and configure only one downgrade strategy for the org. You can configure to downgrade by one tier or to the lowest tier.

Important Notes:
  • For a membership type loyalty program, it is recommended to downgrade to the base tier when the membership expires.
  • For a regular loyalty program, you can choose to downgrade by one tier or to the base tier depending on the requirement.
  • To switch tier expiry from month-end to daily,  log a ticket on Jira. The respective team will enable this for the org.

Tier downgrade check can happen either daily or at the end of a month. By default, the is set to month-end expiry. If you want to switch to a new daily expiry, raise a ticket on Jira. The respective team will enable this for the org.


To configure tier downgrade strategy, on the Strategies page, go to the Tier Downgrade tab and check Enable Tier Downgrade. You will see options to configure the tier downgrade.

This article provides instructions on how to

Downgrade Check on Return

Enable Downgrade check on return to check downgrade - If a customer returns a transaction for which the customer's tier is upgraded,  the tier will also be reversed at the end of the same day accordingly. However, this will happen only if the tier downgrade condition is satisfied during the check.

When a transaction is returned, on the same night, the system will check if the tier is upgraded for that transaction or downgrade eligibility. and then downgrade tier accordingly to one tier.
  • If the customer is qualified to remain in the same tier, nothing will be changed.

  • If not, the customer will be downgraded to the preceding tier (one tier lower).

Limitations:

  • Not applicable if the tier is upgraded based on the following.
    • Rule-based actions (Events View page)
    • Tracker strategy
    • Data Import
    • Customer Merge
    • Tier Downgrade (instead of upgrade)
Tier Downgrade on Transaction return is not applicable for membership-based loyalty.

Configure Tier Downgrade Condition

In configuring tier downgrade conditions, you can set conditions for each tier and extend the validity of the tier along with tier retention.

  1. In Downgrade is based on, choose the on what basis you want to validate tier downgrade condition (usually, the start date for tier downgrade condition validation).

  • Last tier change date - 1 month: To validate the tier downgrade condition based on the last tier date change and the tier validity will be extended for one month if the customer is qualified to continue in the same tier.

For example, during tier validation, if a customer is qualified to continue in the same tier, irrespective of the validity period, the tier validity will be extended for one month. If the tier is expiring on March 15, 2020, then

 
Expiry Check Type
First Expiry CheckNew Expiry DateSecond Expiry Check
Daily expiry
March 15, 2020
Apr 15, 2020
Apr 15, 2020
Month-end expiry
March 31, 2020
April 30, 2020
April 30, 2020
  • Last tier change date - Tier's month downgrade cycle duration: To validate the tier downgrade condition based on the last tier date change (from date). At the end of the tier validity, if the customer is qualified to continue in the same tier, the tier validity will be renewed. That is, if the validity of the tier is one year, the tier validity extends for one more year. If not the membership will be expired.

For example, if a tier validity is 12 months (set in months from date) and a customer is qualified to continue in the same tier during validation, the tier validity will be extended for one more year. If the tier is expiring on March 15, 2020, then

 
Expiry Check Type
First Expiry Check New Expiry DateSecond Expiry Check
Daily Expiry
March 15, 2020
March 15, 2021
March 15, 2021
Month-end expiry
March 31, 2020March 31, 2021March 31, 2021
  • Fixed date: To validate the downgrade from a fixed date. You can select only the 1st date of a month. During tier downgrade check, if a customer is qualified to continue in the same tier, the tier will be renewed as per the validity period (set in months from date ).  

For example, suppose that Downgrade based on is set to Fixed Date 2020-3-1,  and the validity (months from date) is set to 2 months. If a customer is qualified to continue in the same tier during validation, the tier validity will be extended for 2 more months.

 
Expiry Check Type
First Tier Expiry CheckNew Expiry DateSecond Expiry Check
Daily Expiry
March 1, 2020
May 1, 2020
May 1, 2020
Month-end expiry
March 31, 2020May 31, 2020May 31, 2020
  1. Configure downgrade conditions for each tier based on the description provided in the following table.
  2. In For Tier 'X' (where X is a tier name), configure the tier downgrade condition as explained below (to date for tier downgrade condition validation)

Note: You can configure the downgrade condition on the basis of Purchases, No. of visits, and/or points. Tier downgrade happens only if all the conditions enabled are satisfied. For example, if I configure downgrade tier if In last months, Purchases < 2000 and Points < 10. A customer's tier will be downgraded only if both the conditions are satisfied. He will remain in the same tier if only one or no condition is satisfied.

OPTIONDESCRIPTION
Downgrade toChoose to which tier you want to downgrade if the condition is not satisfied.
  • By one tier: Choose to downgrade to an immediate level lower tier.
  • To any lower tier: Choose to downgrade to any lower tier based on the tier strategy. For example, 
  • Lowest Tier: Choose to downgrade to the base tier.
 
___ months from dateSpecify the validity of the tier in months
  • Select Always to downgrade a tier immediately after the validity period is over. For example, you can use this for membership-based loyalty.
  • Select When to define conditions (set in Purchases < and/or No. of visits <)  to extend the tier validity. If the condition is met at the end of the tier validity period, the tier validity extends, else the tier downgrades. In when you will need to configure one or more of the following conditions
    • Purchases <: Check this option to define downgrade condition by purchase amount in the specified duration and set the value in the text box next to it.
      Duration: from (Downgrade is based on) - Until __ months from {option selected in Downgrade is based on}.
    • No. of visits <: Check this option to define downgrade condition by the number of visits in the specified duration. 
    • Points <: Check this option to define downgrade condition by the number of points earned during the specified duration. The points could be loyalty points, promotion points, goodwill points, or campaign points. 
      Specify minimum points a customer should earn during the validity period in the Points < box.
      • Note:
        • Promised points (through delayed accrual) will not be considered in the evaluation of tier downgrade.
        • If a transaction is returned during the validity period, the points issued for the transaction will be reversed automatically and will not be considered as earned points.
 

Note: Tier validity and tier downgrade evaluation period is the same -  from (Downgrade is based on) - Until (__ months from). However, this is not applicable if Downgrade is based on is Last tier change date - 1 month.

Example:

Consider a customer Tom. His tier is upgraded recently from Silver to Gold on 31st Oct 2018 and is valid for 3 months  (___ months from date). The downgrade condition is set as in 3 months if the total transaction amount is less than $500 (Purchases <), the customer's tier will be downgraded by one tier (Silver). Based on the option selected in Downgrade based on, the downgrade behavior varies as illustrated below.

Downgrade based onFirst downgrade checkTier validity extension
Last tier change date - 1 monthJan 31, 20191 more month (Feb 28, 2019)
Last tier change date - Tier's month downgrade cycle durationJan 31, 20193 months (Apr 30, 2019)
Fixed date (consider fixed date as Oct 21, 2018)Dec 31, 20193 months (Mar 31, 2019)


In Fixed Date, irrespective of the date you set, it will consider from the 1st of that month. Hence, in the preceding example, even if the date is Oct 21, 2018, it will consider Oct 1, 2018, as the start date for the tier validity period.

Extend points validity on tier retention (for Points Expiry based on Membership Expiry)

Check On retention extend available points to extend the validity of the active points if a customer continues to remain in the same tier. During the tier downgrade check, if a customer remains to continue the same tier, the validity of the available points of that customer will also be extended. However, this is applicable only for membership-based loyalty where the points are configured to expire based on the Membership expiry date. For more details on Points Expiry configurations, see Create Points Expiry Strategies.

Configure tier downgrade alerts

You can set up SMS and email alerts to inform customers in advance regarding the tier downgrade and also when downgraded. Only SMS, email, and WeChat channels are supported for alerts.

OPTIONPURPOSE
Alert customer before downgradeTo notify customers in advance about their tier downgrade or membership expiry.

  1. Check Alert customer before downgrade 
  2. In Alert, specify the number of days before a tier expiry, you want to notify customers. To send alert multiple times, specify each number separating by a comma(,). For example, if 1,2,3,4 is set, a customer gets downgrade notifications continuously for the last 4 days (one notification per day) before the expiry.
  3. Click the Set button next to SMS/Email to configure the respective message template. For detailed help on how to configure messages, see Configuring Notification Messages

Note: To send notifications through WeChat, a customer should have subscribed to your org's WeChat messages.

Alert customer immediately after downgradeTo inform customers immediately when their tier is downgraded.
  • Check Alert customer before downgrade
  • Click button of SMS Email  to configure the respective message template. For more information on how to configure messages, see Configuring Notification Messages
Note: To send notifications through WeChat, a customer should have subscribed for the org's WeChat messages.
Alert customer immediately after renewalTo inform customers when their tier or membership is renewed: 



  1. Check Alert customer after renewal
  2. Click Set button onf SMS/Email to configure the respective message template. For detailed help on how to configure messages, see Configuring Notification Messages.

Note: To send notifications through WeChat, a customer should have subscribed to your org's WeChat messages.

  1. Click Create to save the downgrade configuration
  2. Then click Reconfigure on the top-right of the screen to see the changes in the live loyalty program. Else, the changes will be just saved in your account but will not affect the live loyalty program.
Event configuration is not required to execute tier downgrade strategy.