Tier downgrade is lowering customers' loyalty tiers who are not active or partially active in visits and purchases. This could be on transaction amount, visit count, or points earned during the last x months. You can configure to downgrade by one tier or to the base tier. By default, the tier downgrade option is disabled for an org. 

Important Notes:
  • For a membership-based 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.
  • By default, the system performs tier expiry check during month-ends. You can enable daily downgrade check with the option Enable Daily Downgrade. If you are unable to see the option, create a ticket requesting to enable daily downgrade option for the org.


Enable tier downgrade option for an org

To configure tier downgrade strategy, follow these steps.

  1. On the Strategies page, click the Tier Downgrade tab.
  2. Check Enable Tier Downgrade. You will see different options related to tier downgrade.
  3. As per the org's requirement, configure each section.  For detailed information on each field, see the following sections.

Downgrade check on Transaction Return

To validate downgrade condition when a customer returns a transaction, check Enable Downgrade check on return. If a customer returned a transaction for which his/her tier is upgraded, the tier also downgrades (reverses) reversed (usually at the end of the day when returned).  The tier downgrade check is performed at the end of the day (of return).

The Loyalty system for tier downgrade performs the following steps for a transaction returned.

  • If the customer tier is not upgraded for the transaction that was returned, no downgrade check is performed.

  • If the customer is upgraded for the transaction that was returned, then the system validates the downgrade condition.

    • If the downgrade condition is not satisfied, the customer remains in the same tier.

    • If the downgrade condition is satisfied, the customer is downgraded to the preceding tier (immediate lower tier).

Limitations of tier downgrade on return

  • Downgrade check is not applicable if a tier is upgraded for the following cases.
    • 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. To check tier expiry on a daily basis, set Enable Daily Downgrade to Yes; to evaluate tier expiry only at the end of a month, leave it to No.
  2. In Downgrade is based on, choose your preferred option for the start date from which the tier downgrade condition has to evaluate.

  • 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.
  • 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.
  • 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 ).  
  1. For each tier (in For Tier __ ), configure the downgrade condition based on the description provided in the following table.
  2. After configuring, click Save to save the changes and click Reconfigure to reflect the changes in the live program.
You can define the tier downgrade condition on the basis of Purchases, No. of visits, points earned, and tracker values during the tier expiry period. To evaluate tier downgrade for multiple conditions, select each criterion (checkbox). For example, to evaluate downgrade on the number of visits and tracker values, you need to select and configure No. of visits and Tracker value for checkboxes.


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.
  • Tier downgrades only if all the When conditions enabled are satisfied. For example, if you set downgrade tier if In the last months, Purchases < 2000 and Points < 10. A customer's tier will be downgraded only if both the conditions are satisfied.
Tracker valuesThis lets you configure tier downgrade check on tracker values of a specific tracker case. You can also use tracker based downgrade check if the upgrade is on tracker values. The evaluation period for the given condition is different in the tracker case. In downgrade check based on purchases, visits and points earned the duration is considered from in the last __ months field, whereas, for a tracker, it considers the evaluation period set for the specific tracker case.
In the drop-down box, choose the tracker by which you want to define downgrade condition and click Add. You can add up to 2 tracker cases

You will see a new field.
  • The drop-down box lists all the tracker cases of the selected tracker.
  • The text box lets you enter the tracker value.

Choose the tracker case from the drop-down list and enter the value in the text box. During the tier validity period (__ months from date), if a customer's tracker value for that specific case is less than the value you set here, the tier downgrades.

  • To delete a tracker case, click the respective Delete icon.
To select/unselect a tracker case, check/uncheck the respective condition.

Note: You can up to 2 tracker cases. If either one is not satisfied, the tier will not downgrade. For example, if you set downgrade if 
  1. Transactions in 1 year < 1000.
  2. Visits in the last 6 months < 30.
Tier downgrades only if both a and b are satisfied.


Examples of how the tier expiry and tier downgrade check dates vary for each option of Downgrade Based on

For the downgrade based on Last tier change date - 1 month

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.
 

Expiry Check TypeFirst Expiry CheckNew Expiry DateSecond Expiry Check
Daily expiryMarch 15, 2020Apr 15, 2020Apr 15, 2020
Month-end expiryMarch 31, 2020April 30, 2020April 30, 2020

For the downgrade based on Last tier change date - Tier's month downgrade cycle duration

  • 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.
 
Expiry Check TypeFirst Expiry Check New Expiry DateSecond Expiry Check
Daily ExpiryMarch 15, 2020March 15, 2021March 15, 2021
Month-end expiryMarch 31, 2020March 31, 2021March 31, 2021

For the downgrade based on Fixed date


  • The Fixed Date is set to 2020-3-1 with a  validity of 2 months (months from date). 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 TypeFirst Tier Expiry CheckNew Expiry DateSecond Expiry Check
Daily ExpiryMarch 1, 2020May 1, 2020May 1, 2020
Month-end expiryMarch 31, 2020May 31, 2020May 31, 2020


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.

For the tier downgrade check based on Tracker values

  • If a tier expiry period is 12 months, purchase, visits and points earned value will be calculated for 12 months at the time of downgrade evaluation. However, if the selected tracker case is for 730 days, the tracker value for the last 730 days is considered to evaluate the tier downgrade condition.

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 notifications(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. You can now use tags to intimate the gap (purchases/points/tracker value/visits...) to renew a customer's tier. You can see all the supported tags  Gap to Renew in the message Tags.


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.
  • You can now use tags to intimate what is achieved and what more is required (purchases/points/tracker value/visits/...) for a customer to renew a customer's tier in the category Gap to Renew. The list shows all the available tags, you need to use only tags that are applicable for the program according to the program configuration.


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 the tier downgrade strategy.