Motivation comes in many forms, and that is certainly the case for members of tiered loyalty programs. By design, such programs allow companies to reward their best customers and encourage them to spend more. Recent research conducted by COLLOQUY suggests some interesting insights into what members have done to move to higher tiers of their favorite loyalty programs.

Looking at the numbers

The Fears for Tiers research from February 2014 found 69 percent of those surveyed said they have no problem with people buying their way into higher tiers. That research nugget is worthy of a closer look.

"Everyone likes a bargain, and if it comes with the chance to earn more points, all the better."

COLLOQUY researchers asked members of loyalty programs what they had done in the past to obtain a higher status in the customer rewards programs they participate in the most often. The top two responses illustrated their eagerness to spend more money.

The biggest response, 22 percent, was buying products or services that are on promotion to get “bonus” points or miles. Everyone likes a bargain, and if it comes with the chance to earn more points, all the better.

The second largest response at 19 percent was to purchase more frequently. That behavior benefits both the merchant and the customer, with more business earning more rewards points. 

Only five percentage points separate the next six most frequent responses:

  • Eleven percent of respondents said they have done business only with companies affiliated with their programs to maximize points and status.
  • Ten percent have spent more within a specific timeframe to meet the deadline for a tier upgrade.
  • Eight percent have spent more per purchase than they typically would to earn more points.
  • Eight percent have recommended a program to a friend to earn referral points.
  • Seven percent have spent more within a specific time frame to meet the deadline to avoid being dropped down a tier.
  • Six percent have bought a higher membership, such as subscribing to Amazon Prime or paying a fee for a credit card with more rewards.

Shrewd consumers can shop around and find loyalty programs that reward them for their desire to spend their way into higher levels.