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Types of Loyalty Promotions

There are three basic types of loyalty promotions:

• Base Promotions. Base promotions must be defined when you create a loyalty program, in order to perform basic processing, such as accruing and redeeming points. These promotions are only identified by their names, and they should not be exposed to members. Because you must create base promotions whenever you create a loyalty program, they are covered in the chapter about setting up programs, in Creating Base Loyalty Promotions.
• Tier Promotions. Tier promotions must be defined when you create a loyalty program to change members' tiers based on the number of points they earn. Because you must create base promotions whenever you create a loyalty program, they are covered in the chapter about setting up programs, in Creating Tier Promotions.
• Reward Promotions. A reward promotion gives members opportunities to earn points that they can exchange for products or services or to earn other rewards. For example, the promotion might allow them to earn extra frequent flyer miles. For an overview of how to create reward promotions, see About Creating Loyalty Promotions.

There are a number of different types of reward promotions. Some common types are:

• Simple Promotions. These promotions reward members for a single purchase. For example, if they fly from SFO to BOS in August 2003, they will earn 1000 bonus points if they are a Platinum member or 500 bonus points if they are not a Platinum member.
• Frequency Promotions. These promotions reward members for multiple purchases of the same type. For example, if they fly from SFO to BOS in August 2003 3 times, they will earn 3000 bonus points, if they fly 4 or 5 times, they will earn 4000 bonus points, or if they fly more than 5 times, they will earn 5000 bonus points.
• Complex Promotions. These promotions reward members for multiple purchases of different types. These are often run with partners to encourage members to buy both the company's and the partner's products. For example, if members stay at a specific hotel and rent a car from a specific car rental company, they will get 5000 bonus points.
• Action-Based Bonuses. These promotions reward members for some action other than a purchase. For example, if they update their member profile, they will get 500 bonus points, or if they register with your reward program, they will get 2000 bonus points. Either of these examples would only be given to a member once.
• Partner Promotions. These promotions reward members' activity with partner companies, and the partner's point block is debited to give the customers points. For example, an airline has hotel companies as its partners, and it runs a promotion giving bonuses for renting hotel rooms.
• Joint Promotions. These promotions reward members for their activities with two or more companies. The activity could be with the host and partner or with multiple partners. For example, an airline runs a promotion giving bonuses if you complete three flights and stay five nights in a partner hotel.
• Roundtrip. These promotions reward members for completing a round-trip flight.

All of these types of promotions can all be created using the same framework of rules, criteria, and actions. For examples of how to create several types of promotions, see Loyalty Promotion Examples.