In a Tiered Loyalty Program, based on the spend over a specified period, the guests are either upgraded or downgraded:
On the day a guest makes a monetary transaction, during the close of business, Zenoti runs a check to see if the guest is eligible to move to a higher tier based on the spend by the guest in the Qualification Period. For more information on Qualification Period, see Configuring a Tiered Loyalty Program.
If the guest is eligible, the guest is upgraded to a higher tier whose spend criteria the guest matches.
Points are awarded based on the accrual setting of upgraded tier.
Note: This is the default behavior. However, if you specify the Tiered Loyalty program to consider closed invoices only, points are awarded as per the ratio of points eligible at each individual tier and not just the upgraded tier. For more information, see the Consider only Closed Invoices section of Configuring a Tiered Loyalty Program.
The check to downgrade takes place on the last day of every month (unless configured otherwise. For more information, see Run downgrade check on the tier expiry of.
If you have selected Allow by passing downgrade for direct enrollments, all guests who are enrolled directly into a tier are not subjected to a downgrade check. For more information, see Step 8 of Configuring a Tiered Loyalty Program.
Only the guests who have gone past the validity period in a tier are checked for potential downgrade. For more information on validity period, see Creating Tiers.
If the check identifies a guest for downgrade, the guest is downgraded based on the setting of Tier Downgrade.The guest can either be downgraded to the next lower tier or to a tier whose spend criteria the guest matches.
Note: If a guest matches the criteria for tier 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 until the check to downgrade actually happens (unless configured otherwise. For more information, see the Tier Downgrade section of Tier Upgrade and Downgrade.
Example: If a guest matches the criteria for tier downgrade on 3rd January, the guest is not downgraded until 31st January.
If a guest is in the lowest tier and is subjected to tier downgrade, the guest will no longer be part of the loyalty program. However, the points accrued by the guest do not expire (unless configured otherwise. For more information, see the Consider only Closed Invoices section of Configuring a Tiered Loyalty Program until the expiry period defined in the tier is complete.
Tier Downgrade Example
Consider the following tier setup of an organization:
If a guest, who is currently enrolled in Platinum tier spends $1500 in the Validity Period (For more information on validity period, see Creating Tiers), based on the setting for Tier Downgrade, the client is downgraded as follows:
Next lower tier: If this option is selected, the guest is moved to Gold tier though the guest does not meet the minimum spend criteria of $2000 of Gold tier.
Applicable tier: If this option is selected, the guest is moved to the Silver tier (as the guest meets the spend criteria of $1500 of this tier).