Improving Brand Loyalty With Loyalty Tiers for Returns and Prices

Some customers are worth more to your business than others. The value of each customer can vary based on factors such as purchase frequency, churn rate, or average order value (AOV). These customers can be placed into different loyalty tiers where they enjoy benefits such as free shipping, longer return windows, and cost savings on specific products.

Loyalty tiers are a great way to reward and encourage brand loyalty. In this article, we’ll share the different pricing and return options offered by DeliverySolutions, their positive impact on your customer’s behavior, how they benefit your business, and the best way to automate your loyalty tier benefits.

The different loyalty tier return and pricing options offered by DeliverySolutions omnichannel platform

Here are some of the different return and pricing options you can offer your different customer loyalty tiers using DeliverySolutions’ unified omnichannel platform:

1. Return window

You can automate different return window options based on loyalty tiers or items purchased. For example, a bronze tier customer can get a 7-day window to return an item, while a gold tier customer gets a 30-day window to return a purchased product.

2. Cost of returns

Our platform allows you to automatically set the cost of shipping based on customer tier or product features, such as the size or price of an item. Customers with a higher loyalty level may enjoy free return shipping, while those with lower loyalty levels may have to pay to ship a returned item.

3. Dedicated support channels

While every customer should have access to dependable support channels, you could give higher-tier customers access to a dedicated support person. This helps put a face and name to the company, further improving customer relations. 

4. Price discounts

With DeliverySolutions’ platform, you can automatically set coupons and automatic price discounts based on customer loyalty tiers or the price of items. This can lead to significant increases in sales, as almost half                                             (49%) of consumers say they buy certain products when on offer or promotion.

5. Early access and exclusive offers

With our automatic ordering system, there’s no need to compile a list of customers for exclusive offers or early access to new products and services. Once you’ve preset the loyalty tier eligible for specific early access and exclusive offers, the system automatically sends the information to the right parties.

6. Instant refund

You can easily set up the refund process for the several loyalty tiers. Higher tiers may be eligible for instant refunds and enjoy cash-back policies, while lower-tiered customers may get store credit to purchase another item from the business.

Benefits of customer loyalty tier-specific returns and pricing options to your business

Loyalty tiers offer a range of advantages that cater to customers and businesses. Here are a few benefits of creating a tiered loyalty program for your business.

Enhanced customer experience 

Multiple loyalty tiers enable your business to personalize its returns and pricing options to enhance each customer’s experience with the company. This encourages customers to recommend your brand to their friends and family, as                          74% of customers are likelier to recommend brands with good loyalty programs.

Increased customer retention 

Customer loyalty tier programs incentivize customers to stay engaged with a brand over the long term. It also adds an element of gamification as customers progress through the tiers. This leads to greater retention and reduced churn rate.

Customer engagement

Loyalty tier-specific returns and pricing options encourage customers to actively engage with the business to unlock rewards. This engagement can range from social media interactions, referrals, and reviews to spending a specific amount within a given timeframe.

Increased spending

With 65% of customers modifying the amount spent to maximize the benefits received, loyalty tiers can significantly increase customer spending. This is because customers in higher tiers often have access to exclusive offers, discounts, and premium services, encouraging them to make repeat purchases and spend more to unlock additional benefits.

Brand affinity

Loyalty tiers can build an emotional connection between the customer and the business. This cultivates a sense of belonging and exclusivity among customers. With up to 72% of customers saying that loyalty programs make them more likely to do business with brands, they can have considerable impact.

Data collection and analysis

Loyalty tiers give businesses valuable insights into customer behavior, preferences, and purchasing patterns. This data can then inform strategic decisions such as marketing efforts, product offerings, and brand positioning.

Reduced marketing costs

By encouraging word-of-mouth marketing through customer reviews and referrals, your business can lower customer acquisition and retention costs. 

Customer feedback loop

A common challenge most businesses face is creating a clear communication path with their customers. Loyalty tier programs help companies to dialogue with their customers, gather feedback, address concerns, and improve their offerings.

Driving consumer behavior through loyalty tiers

By structuring loyalty programs into tiers, businesses can create a framework that encourages desired actions, fosters engagement, and motivates customers to progress through the tiers. In this section, we'll delve deeper into strategies and techniques you can employ to drive consumer behavior through loyalty tiers.

Incentivizing progression

One of the primary goals of tiered loyalty programs is to encourage customers to move up the tiers by taking desired actions. Here are some strategies to achieve this:

1. Points and milestones: You can award customers points for various actions, such as making purchases, referring friends, or engaging with the brand on social media. As customers accumulate points, they unlock higher tiers, motivating them to continue their engagement.
2. Tier-specific rewards: Each loyalty tier should offer distinct rewards, becoming increasingly appealing as customers ascend. This structure entices customers to work toward higher tiers, where more exclusive pricing and returns benefits await.
3. Advancement bonuses: Offering bonuses or discounts when customers transition to a higher tier can be a powerful incentive. It's a tangible reward for their loyalty and encourages them to maintain their status.
4. Tier qualification periods: Businesses can implement time-bound qualification periods and create a sense of urgency. Customers would then be motivated to meet the requirements within a specific timeframe to access tier benefits.

Creating Fear of Missing Out (FOMO)

FOMO is a potent psychological motivator that can be harnessed through tiered loyalty programs. Here's how:

1. Exclusive offers: Higher tiers can grant exclusive sales, discounts, or early access to product launches. Customers fear missing out on these opportunities, driving them to reach higher tiers.
2. Limited-edition rewards: Offering limited-edition merchandise or rewards that are only accessible to top-tier customers creates a sense of exclusivity and urgency.
3. Competition and challenges: Businesses can introduce friendly competition among loyalty program members. Those who achieve specific goals or ranks can gain recognition and unique rewards.
4. Social recognition: Acknowledging and celebrating customers' loyalty on social media or within the loyalty community can help create a sense of belonging and elevate their status in the eyes of their peers.

How DeliverySolutions platform helps automate tiered loyalty-specific returns and pricing options

DeliverySolutions’  platform is a centralized hub that enables seamless interaction across multiple customer touchpoints, providing an integrated experience. Within this framework, the approach to loyalty-specific returns and pricing is revolutionary. Here's how it works:

1. Automated tiered returns

If you have algorithms in place to categorize customers into loyalty tiers, you can use DeliverySolutions to optimize and segment these services. With our data-driven segmentation, automating the returns process is as simple as possible. For instance, high-tier customers may enjoy hassle-free, no-questions-asked returns, fostering a sense of trust and convenience. Lower-tier customers may still receive excellent service, but the system can ensure returns align with the specific terms of their loyalty level.

2. Dynamic pricing personalization

The platform also excels in dynamic pricing personalization for the post-cart experience. It leverages customer data to offer tiered return pricing that aligns with each customer's loyalty status. This means loyal customers can be rewarded with exclusive discounts or special offers, while standard customers receive competitive but not overly generous return pricing. The result is a finely-tuned pricing strategy that doesn’t alienate any customer group.

3. Real-time adaptability

One of the Delivery Solutions platform's standout features is its real-time adaptability. As customer loyalty evolves, so do their returns and pricing options. This ensures that the business remains responsive to changing customer needs and market dynamics. It also clearly shows the customer the advantages associated with progressing up the loyalty tiers

4. Seamless Integration

DeliverySolutions understands that a unified customer experience is essential. Therefore, our platform seamlessly integrates with your existing systems, whether it's your e-commerce platform, loyalty program software, or inventory management system. This integration ensures that the returns and pricing strategies align seamlessly with your overarching customer engagement initiatives.

Use DeliverySolutions to configure tier-based loyalty programs

One of the most significant drawbacks of loyalty tiers is they can be confusing for customers to track their progress. It can also alienate lower-tier customers who may feel left out. With the Delivery Solutions orchestration platform, you can easily avoid these challenges.

Our unique OXM platform allows you to seamlessly offer customized returns and pricing options based on preselected criteria. This encourages customer engagement and rewards customers for being loyal to the brand.

For more information on how our OXM platform can help you automate your tiered loyalty programs and intelligently orchestrate your fulfillment process,                  book a free demo today.