Customer Loyalty Tiers — How Point Usage and Expiry Affects Your Tier Level
Customer Loyalty Tiers — How Point Usage and Expiry Affects Your Tier Level
What Is This?
Your loyalty tier is calculated from your purchase points — not from your current spendable balance. That means using points for rewards never drops your tier. Only two things can lower a tier: returning a purchase, or purchase points expiring (if expiry is enabled).
Real-Life Example
Nurul has 550 purchase points and sits in the Gold Tier. She redeems 100 points for a free drink. Her spendable balance drops to 450 — but her tier stays at Gold, because the tier calculation still sees 550 purchase points. She keeps all her Gold benefits without doing anything extra.
How Tiers Are Calculated
Your tier is always based on purchase transactions only. Redemptions are invisible to the tier engine.
There are two modes depending on whether point expiry is enabled:
Point Expiry Disabled — Lifetime Purchase System
- Tier is based on every purchase point ever earned
- Redeeming points has no effect on tier
- Tier only drops if a purchase is returned
Point Expiry Enabled — Rolling Window System
- Tier is based only on purchase points within the active validity window (e.g., last 90 days)
- Redeeming points has no effect on tier
- Tier drops when old purchase points fall outside the window
What Changes Your Tier
| Event | Affects tier? |
|---|---|
| Earning purchase points | Yes — tier goes up |
| Redeeming points for rewards | No |
| Returning a purchase | Yes — tier may go down |
| Purchase points expiring (if enabled) | Yes — tier may go down |
| Staff manually assigning a tier | Overrides all automatic rules |
When Tier Changes Happen
- Immediately when new purchase points are earned
- Immediately when a purchase is returned
- Automatically at midnight when purchase points expire (expiry-enabled mode only)
What Customers Keep After a Tier Drop
- All rewards already redeemed stay theirs
- Any physical items or vouchers received remain valid
- Access to higher-tier benefits stops going forward
What Your Customers Will See
Customers see their current tier displayed in their loyalty profile on the customer portal. When their tier changes — whether they move up or drop down — the new tier name and any associated benefits are reflected right away. They don't need to refresh or do anything; the update happens automatically.
Good to Know
- A manually assigned tier is locked — it will not change automatically based on points
- Customers can check their tier and point history in their loyalty portal
- Point expiry (if enabled) uses a rolling window — each point expires based on when it was earned, not when the customer last visited
What's Next?
- Learn how to configure tier thresholds under Admin Panel → Loyalty Program → Tiers
- See how point expiry is set up under Admin Panel → Loyalty Program → Points Configuration