Customers who spend more at your stores are said to be your VIP customers. These customers are not just one-time visitors to your store; they are your loyal customers and repeat buyers. So, as a WooCommerce store owner, you must be aware of how to set up a tiered loyalty program for your VIP customers and make them constant peers of your brand.
Research says 80% of your store’s growth comes from just 20% of your loyal VIP customers. Creating better rewards for these customers will help build a lasting relationship and make them feel special.
Two proven ways can help make your customers feel appreciated;
- Create a tiered loyalty program
- Offer exclusive perks
But wondering how to set up a tiered loyalty program? And, how is a tiered-based loyalty program beneficial? Let’s explore!
What Is a Tiered Loyalty Program?
A tiered loyalty program is a customer rewards system that offers different levels of benefits based on a customer’s loyalty and engagement with your store. Customers earn points through purchases, writing reviews, referring friends, or other actions — and as they accumulate more points, they move into higher tiers with better rewards.
Think of it like airline frequent flyer programs. A Bronze member earns basic miles. A Gold member earns double miles, gets lounge access, and boards first. The more you fly, the more you get. The same logic applies to your WooCommerce store — customers who spend more should earn more.
WooCommerce doesn’t include tiered rewards by default. You need a loyalty program plugin with tier support. WPLoyalty’s loyalty levels feature lets you create unlimited tiers with custom point thresholds, badges, and tier-specific rewards — all from one dashboard.
Set up powerful tiered loyalty programs in minutes with WPLoyalty
Benefits of a Tiered Loyalty Program
A report by Global Customer Loyalty says stores with tiered programs get 1.8x higher growth compared to stores that do not offer tiered programs.
Tier-based loyalty programs offer various benefits to your WooCommerce store and loyal customers.
Improves Customer Lifetime Value
The tiered loyalty program builds a long-lasting relationship with your top customers. When customers see a clear path from Bronze to Gold — with better perks at each step — they spend more to get there. Loyalty program members spend 12-18% more per order than non-members (McKinsey, 2025). Every tier upgrade represents a customer who’s actively choosing your store over competitors.
Increases Customer Retention
Increasing customer retention by just 5% boosts profits by 25-95%. A tiered program renews the customer’s commitment at every level they move up. The customer who just reached Silver doesn’t want to lose that status — they keep buying. That psychological investment is more powerful than any one-time discount coupon.
Increases Sales and Average Order Value
When customers can see they’re 200 points away from the next tier, they add more items to their cart to cross that threshold. This naturally lifts average order value without running sales or discounts. Customers aren’t spending more because of pressure — they’re spending more because they want the next level. Pair tiers with WooCommerce upsell plugins to maximize AOV even further.
Drives Customer Engagement
75% of shoppers say they favor brands that offer rewards (Bond Brand Loyalty). Tiered programs give customers a reason to engage beyond just purchasing — earning points for social shares, reviews, referrals, and even daily logins. Each engagement touchpoint strengthens the relationship and moves the customer closer to the next tier.
Generates Word-of-Mouth Referrals
Repeat customers spend 67% more than new ones. Customers who reach higher tiers and enjoy exclusive benefits naturally talk about your brand. They share referral links, post on social media, and recommend your store to friends — becoming brand ambassadors without being asked.
Related Read: Best Referral Program Examples.
How do I Set Up a Tiered Loyalty Program?
To set up a tiered loyalty program, using a WooCommerce loyalty plugin like WPLoyalty can greatly assist your business in achieving its objectives. The steps below guide you through how to set up a tiered loyalty program with WPLoyalty and examples of different ways to reward your VIP customers based on tiers.
Step 1: Get WPLoyalty
Visit your WordPress dashboard – Click on plugins – Add new – Upload the WPLoyalty plugin – Install and activate it.
To know more about installation, Click Here.
Example 1: Create Levels based on the Points your Customers earn
Visit your WPLoyalty dashboard and click on “Levels”.
You can give different names for the levels as per your preferences.
For example, let’s name the levels Bronze, silver, gold, and platinum. Your customers who earn points from 1000 to 2000 will come under the bronze level, one who earns points between 2001 to 3000 will come under the silver level, and so on.
Fill out the necessary information as shown in the picture below. Give a level name and number of points to collect, give an image to the level (optional), and Click on save and close.
You can create any number of levels by clicking on the create a new level. Also, once you create the levels, click on the update levels. Clicking on the update levels will add the customer details successfully.
Your customer will be able to see the levels on their my account – points & rewards section. Also, your customers can see the number of points needed to unlock the next level. This will motivate them to purchase more, earn more points and reach new levels.
Example 2: Different Rewards for Customers at Different Levels.
Tier 1: Silver Level – “Get 10 points for every dollar you spend”
Click on campaigns – points for purchase – fill out the details in the field and click on the conditional rule – customer level – Select ‘Silver’ and click on “Save and Close”.
Tier 2: customers at the gold level can get 20 points for every dollar spent.
Similarly, customers at the Tier III, i.e Platinum level can get 30 points for every dollar spent, and so on.
Your customers can see the rewards on my account page – points & rewards – Ways to earn rewards or click on the chat widget – earn your rewards.
Tier 3: Platinum level – “Customers will get a flat 25% off on every purchase.”
Click on rewards – create new reward – percentage discount – Fill out the details and click on “Save and Close”.
Once the reward is created, you can apply the discount to any one of the campaigns. Let’s reward based on spending campaigns, for example.
Click on campaigns – reward based on spending – give a campaign name – descriptions (optional). Choose the type of reward as ‘Coupon Reward’ – Select ‘Percentage Discount.’
Click on conditional rules – Customer level – Click on ‘Platinum’ and then save and close.
Your customers can see the rewards on my account page – points & rewards – Ways to earn rewards or click on the chat widget – earn your rewards.
See It in Action: Tiered Loyalty Setup (Video Walkthrough)
Watching the setup is faster than reading steps. This walkthrough covers creating tiers, assigning tier-specific campaigns, and testing the customer-facing experience.
How Many Tiers Should You Create?
This is the question most guides skip. Here’s the framework:
3 tiers works best for most WooCommerce stores. It’s simple enough for customers to understand and aspirational enough to drive behavior. Common structures:
- Bronze / Silver / Gold – classic, universally understood
- Insider / VIP / Elite – modern, brand-friendly
- Member / Plus / Premium – clean, professional
4 tiers works if you have a large customer base with wide spending variation — for example, a store where AOVs range from $30 to $500+. The fourth tier (Platinum/Diamond) captures your top 1-2% of customers.
5+ tiers is too many. Customers get confused about where they stand and what they’re working toward. If a customer has to study a chart to understand your program, it’s too complex.
How to Set Tier Thresholds
Base your thresholds on your average order value (AOV) and customer purchase frequency:
- Entry tier (Bronze): 0 points — everyone starts here
- Middle tier (Silver): Points equivalent to 3-5 purchases (e.g., if AOV is $60 and you award 1 point per $1, Silver starts at 180-300 points)
- Top tier (Gold): Points equivalent to 8-15 purchases (e.g., 480-900 points)
The key principle: the middle tier should be achievable within 2-3 months of normal shopping. If it takes a year to reach Silver, customers lose interest before they get there. Use the WPLoyalty ROI Calculator to model different threshold scenarios against your margins.
What Perks to Offer at Each Tier
The rewards must get meaningfully better at each tier. If Bronze and Gold get the same 10% discount, there’s no reason to climb.
| Tier | Point Multiplier | Suggested Perks |
| Bronze (Entry) | 1x (base rate) | Points for purchases, basic coupon redemption, birthday bonus (e.g., 50 points) |
| Silver (Mid) | 1.5x | Everything in Bronze + early sale access, free shipping reward, 100-point birthday bonus, exclusive Silver-only coupons |
| Gold (Top) | 2x | Everything in Silver + free products, tier-based automatic discounts (e.g., 15% off always), 200-point birthday bonus, priority support |
The multiplier is the most powerful perk. A Gold member earning 2x points reaches rewards twice as fast. This means their $50 order earns 100 points instead of 50 — which makes them feel the tier status in every purchase.
Use point expiry across all tiers to create urgency. Set points to expire after 12 months, with automated email reminders at 30 days before expiry. This pushes customers to redeem and repurchase rather than letting points sit idle.
Also Read: How to Set Up a VIP Loyalty Program in WooCommerce
Tips for Creating a Successful Tiered Loyalty Program
- Easy Signup – A customer should feel it’s easy to join your tiered loyalty program. If the registration process is lengthy or complicated, most customers will abandon it before completing. Offer signup rewards (50-100 points) to incentivize account creation.
- Be Clear About the Rewards – Make sure customers know what each tier offers and what they need to do to reach the next level. Show the tier progression visually on your rewards page and in the customer’s My Account area.
- Easy Way to Earn Rewards – Customers respond faster to clear, simple earning rules. “Earn 1 point per $1 spent” is better than “Earn 0.5 points per $1 on eligible non-sale items excluding gift cards.” Keep it clean.
- Show Tier Progress on Every Page – Install the WPLoyalty Launcher Widget so customers always see their current tier, points balance, and how far they are from the next level. A floating panel on your storefront keeps the program visible without being intrusive.
- Set Point Expiry for Urgency – Points that never expire create no urgency to redeem or repurchase. Set a 12-month point expiry and notify customers 30 days before. This single change can increase redemption rates by 20-30%.
Tiered Loyalty Program Examples
Discover how these brands have successfully utilized tiered loyalty programs to boost customer engagement, retention, and revenue. Gain valuable insights that you can apply to your own business strategies.
Lancome
The tiered Elite Rewards Program from Lancome makes it simple for their customers to earn points. For every dollar spent, customers receive 10 points, and they also receive 50 points for following Lancôme on social media and 100 points for sharing additional personal info.
VIP Members can get early access to products, a ShopRunner membership, and invitations to Lancôme parties and events according to their membership category (Rose Gold, Gold, or Platinum).
Total Tools
The biggest professional tool retailer in Australia is called Total Tools. When customers shop both in-person and online, loyalty members receive Insider Rewards.
The program has three tiers, Bronze, Silver, and Gold. It offers members a variety of benefits, including invitations to events, bonus offers, dollar amounts as incentives for different tiers, and special member-only discounts.
Innovasport
Customers are divided into low, medium, and high spender levels as part of their tiered rewards program, Legends, which grants them access to events and other perks like lottery tickets.
Customers can use their phones to get real-time loyalty updates, earn rewards, and obtain credit for in-store purchases by scanning a QR code.
e.l.f – Beauty Squad
e.l.f. Beauty Squad members receive huge benefits and delightful surprises. Every e.l.f. Cosmetics purchases and a number of additional actions give Beauty Squad members points.
There are three tier levels: FAN, PRO, and ICON, and as you climb the tier ladder, more benefits become accessible to you. By sharing a picture of your receipt or online order confirmation, members can earn points for any e.l.f. Cosmetics purchases made at a merchant.
Additionally, customers can earn points by visiting e.l.f.cosmetics.com, completing their beauty profile, posting on social media, submitting a review, signing up for emails or texts, and more. Icon tier members get free shipping and free trials of new products before they go on sale.
Sephora — Beauty Insider
Sephora’s Beauty Insider is the gold standard of tiered loyalty. Three tiers — Insider (free), VIB ($350/year spend), and Rouge ($1,000/year spend) — with perks that get dramatically better at each level. Rouge members get free custom makeovers, first access to products, and invitations to exclusive events.
What WooCommerce stores can learn: Sephora’s tier thresholds are based on annual spend, not lifetime points. This means customers re-qualify each year — creating ongoing motivation rather than one-time achievement. Consider annual tier resets for your own program.
Also Read: Starbucks Loyalty Program Case Study
Turn your best customers into VIPs with WPLoyalty’s easy tiered rewards
What to Do Next
You now have the strategy (how many tiers, what perks, what thresholds) and the setup steps (WPLoyalty levels, tier-specific campaigns, tier-conditional rewards). But a tiered loyalty program works best when it connects to your broader retention strategy.
Each piece feeds the tiered system. Signup rewards get the customer into Bronze. Purchase points and reviews move them toward Silver. Referrals and consistent buying push them to Gold. The tiers give structure — the rest of WPLoyalty gives momentum.
Install WPLoyalty free and set up your first tiered loyalty program — Bronze, Silver, and Gold tiers take under 15 minutes. Start with 3 tiers and add tier-specific campaigns as you grow.
Keep Reading:
- How to Create a Loyalty Program in WooCommerce
- WooCommerce Gamification Guide
- WooCommerce Store Credit Guide
- WooCommerce Category Discount Guide
Frequently Asked Questions
Three steps: First, segment your customers based on purchasing behavior or points earned. Second, assign escalating benefits to each tier — higher tiers get better point multipliers, exclusive rewards, and perks like free shipping. Third, communicate the program clearly using your rewards page and launcher widget so customers always know their tier status and what they’re working toward.
Install WPLoyalty on your WooCommerce store, then go to WPLoyalty → Levels → Create New Level. Define each tier’s name, point threshold, and optional badge image. Then create tier-specific campaigns (WPLoyalty → Campaigns → Conditional Rules → Customer Level) to award different point rates or rewards at each tier. The full step-by-step walkthrough with screenshots is in the tutorial section above.
3-4 tiers works best for most WooCommerce stores. Three tiers (Bronze/Silver/Gold) is simple enough for customers to understand and aspirational enough to drive behavior.
Yes — and you may need to. If nobody reaches your top tier after 3 months, the thresholds are too high. If everyone reaches the top tier within a month, they’re too low. Adjust gradually and communicate changes clearly to existing customers so they don’t feel penalized.
Tiered loyalty levels require WPLoyalty PRO. The free version supports points for purchases and basic reward redemption, but campaigns with tier-based conditional rules (like awarding different points per tier) and the levels feature require the PRO version.
