Configuring a Tiered Loyalty Program

You can use Zenoti to configure a Tiered Loyalty program in your organization.

You can setup tiers and define how guests can accrue points by spending amount and performing specific configured actions and later redeem them.

Note: Tiered loyalty program is available only if you have an Enterprise license. The Tiered Loyalty program is configured at the organization level and is applicable to all centers within your organization.

TO CONFIGURE A TIERED LOYALTY PROGRAM IN ZENOTI: 

  1. Ensure you are at the Organization level, and on the main menu, click the ADMIN tab.
  2. In the ADMIN DASHBOARD, go to ORGANIZATION > ORGANIZATIONS.
    The Edit Organization window opens.
  3. Click the POINTS tab.
  4. For the Loyalty Points Program Type, select Tiered loyalty program.
    If you are configuring a Regular Loyalty Program, see Configuring a Regular Loyalty Program.

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  5. Based on your requirements, specify the following options:
    1. Send loyalty points expiry reminder

      Specify how many days before the loyalty points expiry must the guest receive a reminder that the points are about to expire.

      To add a reminder, click Add reminder and enter the number of days before the points expiry you want the reminder to be sent.

      Example: If you enter 14 in this field, a reminder is sent to all the guests whose loyalty points are set to expire after 14 days.
      You can specify as many as 5 expiry reminders to be sent out at configured intervals. To add additional reminders, click Add reminder and enter the number of days.
      The screenshot below shows 5 reminders to be sent out at various intervals before points expiry:


      Note: To configure and send loyalty points expiry reminder, you must be aware of the following:
    2. Qualification Period
      Specify the qualification period of a guest in months that Zenoti must consider the spend history of, either to enroll a guest into the loyalty program or to upgrade or downgrade the tier.
      Note: For Qualification Period, you must be aware of the following:
      • The Qualification Period you specify here is applicable to all tiers (either for tier enrollment, upgrade, or downgrade).
      • The Qualification Period is a sliding window. Meaning, Zenoti considers the spend history starting from the day of the transaction until the number of past months you specify in this field.
        Example: If the Qualification Period is 12 months, and if the transaction date is 4th July, 2016, Zenoti considers the spend history between 3rd July, 2015 and 4th July, 2016. 
    3. Award Loyalty Points on
      By default, Zenoti awards points irrespective of the invoice being open or closed. To restrict awarding on points to closed invoices only, select the checkbox, Closed invoices only.
      If you select this option, the following options are made available:


      • Loyalty points accrual and redemption using: This option allows you specify if the accrual and redemption of points must be done on the pre-tax or the post-tax amount. To see how your selection affects the guests and the organization, see Regular Loyalty Program: Loyalty Points Accrual and Reversal. 
      • Award points on discounted items to tier members: By default, points are not awarded on discounted items (services, products, day/series/custom packages, and memberships). To award points for discounted items, select this option.
        Example: If a guest avails a Root Touch Up service of $100 at 20% discount and pays $80 by cash. If the Tier Accrual setting is for 20 points to be awarded for every $100 spent, then:
        • If the option is not selected: No points are awarded
        • If the option is selected: 16 points are awarded for the $80 spent
      • Use individual tier ratio for points when jumping tiers: If due to amount spent on a single invoice, a guest is upgraded to a tier above the next immediate upper tier, you can award points based on the ratio of points eligible at each individual tier and not just the final upgraded tier.
        Note: If the guest is upgraded to the next immediate upper tier, this option is not applicable.
        Example: If an organization has 3 tiers, Silver, Gold, and Platinum, and a guest is currently in Silver tier and spends a large amount on a single invoice, and matches the spend criteria of the Platinum tier, the guest is upgraded to the Platinum tier. However, you can use this option to decide the following:
        • Award points as per the ratio of points eligible at each individual tier the guest will pass through (Silver, Gold, and Platinum in this case).
        • Award points as per the accrual settings of the Platinum tier (default behavior)
        • Example: Consider the following tier setup of an organization:
           
          Tier Minimum Yearly Spend Points Ratio
          Platinum $3000 0.4
          Gold $2000 0.3
          Silver $1000 0.2
           
          • Example 1: First Time Enrollment:

            If a new guest on the first visit, spends $4000, based on the Use individual tier ratio for points when jumping tiers setting the points that are awarded change:

            • If the option is selected, points are awarded as follows:

              • $0 - $1000 = 0 points

              • Silver Tier: 1000 x 0.2 = 200

              • Gold Tier: 1000 x 0.3 = 300

              • Platinum Tier: 1000 x 0.4 = 400
                The guest is awarded 900 points and placed in the Platinum Tier.

            • If the option is not selected, the normal default behavior is applied as follows:

              • Amount spent x ratio of the upgraded tier.

              • In this case, 4000 x 0.4 = 1600.
                The guest is placed in the Platinum Tier and 1600 points are made available for redemption from the Platinum Tier.​

          • Example 2: Tier Jump
            If a guest, who is currently enrolled in Silver tier has spent $800 so far, spends $2000 today and the invoice is closed, based on the Use individual tier ratio for points when jumping tiers setting, the points that are awarded change: 

          • If the option is selected: points are awarded as follows:

            • Silver Tier: 200 x 0.2 = 40 points

            • Gold Tier: 1000 x 0.3 = 300 points

            • Platinum Tier: 800 x 0.4 = 320

          • If the option is not selected, the normal default behavior is applied as follows:

            • Amount spent x ratio of the upgraded tier. In this case, 2000 x 0.4 = 800
              The guest is upgraded to Platinum Tier and 800 points are made available for redemption from the Platinum Tier.

  1. Guest Enrollment
    The default setting is to enroll guests manually. This is useful if you have a manual process, for example, collecting an enrollment fee to enroll a guest in the program.
    To automatically enrolls guest into the program, select this option. 
    To see how a guest is enrolled into a loyalty program and understand the manual enrollment process, see Tier Enrollment and Moving Between the Tiers (Tier Upgrade or Downgrade). 
  2. ​​Tier Downgrade 
    This section allows you to specify the criteria for downgrade check, and the tier the guest must be downgraded to if the guest does not match the spend criteria of the current tier.
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    You can configure the following:
    • Run downgrade check on tier expiry of: Configure the tier downgrade check to take place as follows:
      • Current Tier: This option is selected by default. If you leave this option unchanged, the check to downgrade for a guest takes place on the expiry of the validity period of the tier the guest currently is in.
        Note: If the downgrade check identifies a guest for downgrade in the beginning or middle of the month, the guest is not immediately downgraded. The guest continues to be in the current tier until the last day of the month.
      • First enrolled tier/last downgraded tier: If you select this option, the downgrade check takes place as follows:
        • For a guest who has never been subjected to a downgrade check: The downgrade check takes place on the expiry of the validity period of the tier that the guest first enrolled in and not the validity of the tier that the guest currently is in (due to tier upgrades).
        • For a guest who has already been subjected to a downgrade check: The downgrade check takes place based on the validity period of the tier the guest is downgraded to.
        • Example 1: In an organization that has three tiers: Silver, Gold, and Platinum, all having 365 days validity period, consider the following scenario for a guest who has never been subjected to a downgrade check:
          1. Guest enrolls into Silver Tier: 15th Jan, 2016
          2. Tier Upgrade to Gold tier: 15th June, 2016
            The day on which the first downgrade check takes place varies as follows:
            • First enrolled tier/last downgraded tier: If you select this option, the guest is subjected to downgrade check on January 15th, 2017.
            • Current tier: If you select this option, the guest is subjected to downgrade check on June 15th, 2017. 
        • ​​Example 2: In an organization that has three tiers: Silver, Gold, and Platinum, all having 365 days validity period, consider the following scenario:
          1. Guest enrolls into Silver Tier: 15th Jan, 2016
          2. Tier Upgrade to Gold tier: 15th June, 2016
          3. First downgrade check: 15th Jan, 2017
          4. Guest downgraded to: Silver tier on 15th Jan, 2017
          5. Tier Upgrade to Gold tier: 30th Aug, 2017
            The day on which the next downgrade check takes place varies as follows:
            • First enrolled tier/last downgraded tier: If you select this option, the guest is subjected to downgrade check on January 15th, 2018.
            • Current tier: If you select this option, the guest is subjected to downgrade check on 30th Aug, 2018. 
    • ​​Downgrade guest on: This option is available only if you select the downgrade check to be based on First enrolled tier/last downgraded tier.
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      You can specify one of the following options:
      • Day of tier expiry: Select this option if you want the guest to be downgraded on the very day the guest's validity period in a tier is complete.

      • Last day of the month: This option is selected by default. If you leave this option unchanged, the downgrade takes place on the last day of the month during which the guest's validity period in a tier completes.

      • Example: If a guest is upgraded to Gold tier (with a validity period of 356 days) on January 15, 2016 and the guest does not make any subsequent purchases, and if the downgrade check marks the guest for a downgrade, the day on which the actual downgrade takes place varies as follows:
        • Day of tier expiry: If you select this option, the guest is downgraded on January 15th, 2017.
        • Last day of the month: If you select this option, the guest is downgraded on January 31st, 2017. 
    • If there's no change in tier, run the next downgrade check on: This option is available only if you select the downgrade check to be based on First enrolled tier/last downgraded tier.
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      If after a downgrade check, the guest's tier does not change, you can configure the next downgrade check to run on:
      • Current tier validity: The downgrade check is run after the validity period of the tier that the guest currently is in expires.
      • Every month: The guest is subjected to downgrade check every month until the guest is downgraded. 
      • Example: In an organization that has three tiers: Silver, Gold, and Platinum, all having 365 days validity period, consider the following scenario:
        1. Guest enrolls into Silver Tier: 15th Jan, 2016
        2. Tier Upgrade to Gold tier: 15th June, 2016
        3. First downgrade check: 15th Jan, 2017
        4. Tier after downgrade check: Gold tier (no change in tier after downgrade check)
      • Based on your selection, the next downgrade check varies as follows:
        • Current tier validity: If you select this option, the guest is subjected to a downgraded check again on January 15th, 2018 (because the validity of the Gold tier is 365 days).
        • Every month: If you select this option, the guest is subjected to a downgraded check again on February 15th, 2017. If there is no change in tier, the check takes place again on March 15, 2017. This repeats until the guest is downgraded to a lower tier or is upgraded due to increase in money spent. ​
    • Downgrade to: You can specify one of the following options:
  • Expire loyalty points when guest is no longer in a tier
    By default, if a tier downgrade results in a guest being no longer part of the loyalty program, the points accrued by the guest do not expire until the expiry period defined in the tier is complete. For more information on settings points expiry, see Creating Tiers.
    Select this option if you want the loyalty points accrued by a guest to expire immediately if a guest is no longer part of the loyalty program. 
  • Loyalty Points Statement
    Allows you to send loyalty points statement to guests by email or text messages on periodic basis.
    ​If you select this option, the following options are made available:

  • Send statement starting from: Select a date (either today or a date in future), starting which, the loyalty points statement is sent to the guests. Use the Edit loyalty point statement template to make changes to the statement that goes out to your guests. For more information, see Configuring Email/Text Notification for Loyalty Points Balance Statement.
  • Statement frequency: Specify the statement frequency in months. After sending out a statement, Zenoti waits for the number of months you specify in this field (between 1 and 12) before sending out another statement.
    Example: If you select 1, Zenoti sends out loyalty points statement once every month. 
    Note: The next statement date is auto calculated and is determined by your entry in the Send statement starting from and Statement frequency fields.
  • For Loyalty Points Statement you must be aware of the following:
    • For guest's to receive Loyalty Points Statements, the Email/Text Notification template for Loyalty Points Statement must be turned on. For information on configuring the notification, see Configuring Email/Text Notification for Loyalty Points Balance Statement.
    • Every guest who is enrolled in a tier receives the statement.
    • The statement is sent to the guest usually 1-2 hours before your center opens.
  1. ACCRUAL SETTINGS
    Define accrual settings at the Organization level against each tier in the Marketing module by clicking the Loyalty Point Tiers link. Clicking Loyalty Point Tiers, opens the Marketing module. 
    You can define Accrual Settings against each tier by following steps in Creating Tiers.
    Round Points
    Use this option to specify if the loyalty points must be rounded up or down.
    • Up: Select if the system must round up the loyalty points to a higher value.
    • Down: Select if the system must round down the loyalty points to a lower value.
      Example: If a guest spends $25, and if 1 point is awarded for every $10 spent, then the guest will earn 2.5 points. Based on the selection the points are rounded as follows:
      • Up: The points are rounded to 3.
      • Down: The points are rounded to 2.
  2. Payments that Award Points
    The system by default awards points for monetary payments made by using cash, card and check. Custom payments, if configured, also result in points accrual.  Learn more about Loyalty Point Accrual on Custom Payments.
  3. Redemption Settings  
    Use this section to specify the following redemption criteria:

    1. Minimum points allowed for points redemption is: Specify the minimum number of loyalty points that the guest must redeem on an invoice.
      Example: If you enter 100 in this field, the guest must redeem no less than 100 loyalty points on an invoice.
    2. Maximum points required for redemption in an invoice: Specify the maximum number of loyalty points that can be redeemed either as a number or as a percentage of the invoice.
      • If you specify a number, that number is the maximum number of points that can be redeemed in an invoice.
        Example: If you enter 1000 in this field, the guest can redeem no more than 1000 loyalty points in an invoice.
      • Specify a maximum value in terms of the percentage of the invoice that a guest can pay using loyalty points.
        Example: If you specify 10%, and the invoice amount is $100, the guest can redeem points equal to only $10.
    3. 1 loyalty point is equal to: Enter the currency value for 1 loyalty. 
      Example: If you enter 0.20 in this field, and organizations unit of currency is Dollar, then each loyalty point is equal to 20 Cents.
    4. Loyalty points can be redeemed on: Specify if the guest can redeem points against Products, Services, Series and Custom Packages, and Day Packages.
    5. Calculate commission on point redemption amount as a Free Service: This field is clear by default, Meaning, no commission is paid to the service provider for the invoice amount paid through loyalty points. 
      Select this field if the service provider should be paid a commission as per the slab set for the Free Service Revenue. The commission then is paid on payments made via cash, card, check, or configured custom payments. 
  4. Click Save
    The Tiered Loyalty program is configured for your organization.

See Also

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