Siebel Loyalty Administration Guide > Setting Up Siebel Loyalty Programs > Process of Setting Up Loyalty Programs >

Defining Tier Classes and Tiers


While creating a new program, the loyalty administrator defines tier classes and tiers for the program:

  • Tier Classes. Multiple tier classes are used if you have different tiers for different types of members. For example, an airline frequent flyer program may have different tiers for members flying business class and first class. Then the airline would define two tier classes, and it would define a set of tiers for each tier class.
  • Tiers. In most loyalty programs, members earn the right to be in certain tiers, such as Gold Member or Platinum Member, based on how much they purchase. Members get rewards for being in higher tiers, so tiers are an important incentive in loyalty programs.

You must define at least one tier for each tier class. If the tier class is not one that applies to all members, then make the default tier a tier with the Show Flag left unchecked.

CAUTION:  Do not change the names of tier classes after you have activated them.

NOTE:  When there are multiple tier classes in a program, the program decides which is the dominant tier for a member by querying for all tiers for the member that have the Show Flag = Y and that were active at the time of the transaction date. Of these tiers, the one whose tier class has the lowest sequence number is the dominant tier for the member. If multiple tiers are found for the same tier class, then the one that was approved the last is considered, as it is deemed to be the most recent valid tier. If there were no tiers active at the time of the transaction date, then the current active tiers are used. You can change the behavior to always use the current active tiers if desired, by defining a System Preference with the name LOYUseTransactionDateTier and the value N.

This task is a step in Process of Setting Up Loyalty Programs.

To get into a tier, members must earn a specified number of qualifying points within a specified time. This time is called the qualifying period. When you define tiers, you specify the number of qualifying points needed to qualify for the each tier and the qualifying period that members have to earn those points.

A tier also defines if and when points expire. Tier expiration rules are the default. If a promotion's action is to assign points, the promotion expiration rules override tier expiration rules. For the promotion expiration rules to override the tier expiration rules, you must enter the Expiration Snap To, Expiration Length and UoM fields for the promotion; these fields are described in the following procedure.

Because many loyalty programs send statements more frequently to members in higher tiers, you also use tier definitions to specify when statements are sent.

To define tier classes and tiers

  1. Navigate to the Loyalty Program Administration screen.
  2. In the Loyalty Programs list, select the program that the tiers are used by and click its Program Id hyperlink.
  3. Click the Tier Classes view tab.
  4. Add a new record to the Tier Classes list, and complete the necessary fields. Some fields are described in the following table.
    Field
    Comments

    Sequence

    Enter a number indicating how high the status of this tier class is compared with other tier classes. For example, a frequent flyer program may include standard = 1, business class =2, first class = 3.

    Primary Tier Name

    Select the lowest tier in this tier class, which is the tier that members are in when they first enroll. This value can only be specified after the tiers have been created for this class, and it should be specified before activating the tier class.

    Restart Qual Period

    Select when the length of time for the new qualifying period starts after a tier status change. For example, if a member changes from the Silver tier to the Gold tier, this field specifies when the length of time will start to qualify for the Platinum tier.

    The options are:

    • Qualifying Period Expiration. The length of time for the new qualifying period starts at the expiration of the current qualifying period. For example, the qualifying period for a member to qualify for the Gold tier ended on December 31, 2003, the member actually qualified for the Gold tier on August 17, 2003, and the length of time to qualify for Platinum tier is one year. Then the member has from August 17, 2003 until December 31, 2004 to qualify for the Platinum tier.
    • Tier Status Change. The length of time for the new qualifying period starts immediately when the tier changes. For example, if a member changes from Silver tier to Gold tier on August 17, 2003, and if the length of time to qualify for the Platinum tier is one year, the member will have from August 17, 2003 until August 17, 2004 to qualify for the Platinum tier.

    NOTE:  Do not choose Tier Status Change if you choose Jan. 1 or First Day of Month in the Start Qualifying Period field. These two combinations do not make sense logically. Choose Tier Status Change only if you choose Enrollment Date in the Start Qualifying Period field.

  5. Add a new record to the Tiers list, and complete the necessary fields. Some fields are described in the following table.
    Field
    Comments

    Sequence

    Enter a number indicating how high the status of this tier is compared with other tiers. For example, a program may include standard = 1, Silver =2, Gold = 3, Platinum = 4.

    Qual Period Length and Qual Period UoM

    Enter the length and unit of measurement for the initial qualifying period for this tier. For example, if the qualifying period is one year, the length = 1 and UoM = Year. If the qualifying period is six months, length = 6 and UoM = Month.

    Requal Period Length and Requal Period UoM

    Enter the length and unit of measurement for the qualifying period for existing members to remain in this tier. Usually, this is the same as the initial qualifying period. For example, if a member must earn 10,000 points in a year to initially qualify for the Platinum tier, the member must continue to earn 10,000 points per year to remain in the Platinum tier.

    Expire Extension in Days

     

    Enter the extension in days before points expire. Typical extensions are 30, 60, 365.

    For example, if you enter 365, points do not expire if you earn or redeem any amount of points at least once every 365 days. If you have not earned or redeemed any points for over 365 days, the Loyalty Engine expires all accrued points.

    If you do not want to use this feature, enter a value of 0 for each tier. Do not leave the field blank (null). Entering 0 will make the members points expire according to the tier and promotion point expiration rules regardless of whether the member has had any activity.

    Qual Point Expiration Length and Qual Points Expiration UoM

    Enter the length and unit of measurement when qualifying points expire for members of this tier. For example, if qualifying points expire two years after they are earned, the length = 2 and UoM = Year. After points expire, the member can no longer exchange them for rewards.

    If points should never expire, clear the Expire Points check box.

    Non-Qual Point Expiration Length and Non-Qual Point Expiration UoM

    Enter the length and unit of measurement when non-qualifying points expire for members of this tier.

    If points should never expire, clear the Expire Points check box.

    Expiration Snap To

    Select when the period starts that is used to determine whether points expire. Select Calculated date to start on the date when the points are earned. Select 1st Day of Next Month, Quarter, or Year to start on the specified date after the points are earned.

    Statement Frequency

    Select how frequently statements are sent to members of this tier. Many loyalty programs send statements more frequently to members of higher tiers. For more information about statements, see Generating, Viewing, and Printing Loyalty Members' Statements.

    NOTE:  You can generate loyalty statements manually from the Statement Administration view. To generate statements automatically based on frequency, you must build a workflow rule that takes the Statement Frequency field value into account, along with any other tier-specific parameters that are necessary. For information about building workflow rules, see Siebel Business Process Framework: Workflow Guide.

    Only If Activity

    If this check box is selected, a statement will only be sent if an accrual or redemption activity has occurred since the last one was sent.

    Show Flag

    Select this check box to display the tier on the Web site.

    NOTE:  To display this field, right click on the list and use the Columns Displayed feature.

    Expire Points

    Clear this check box if points should never expire for members of this tier. This overrides the specifications in the fields that indicate when points expire.

    NOTE:  To display this field, right click on the list and use the Columns Displayed feature.

    Lounge

    Select the lounge that members of this tier are allowed to use. This field is used by airlines that give members of their frequent flyer plans the right to use special lounges.

    NOTE:  To display this field, right click on the list and use the Columns Displayed feature.

    Card Type

    Select the membership card type for this tier.

    NOTE:  To display this field, right click on the list and use the Columns Displayed feature.

    Demotion Tier

    Select the tier that members will be demoted to if they fail to earn enough points to requalify for this tier during the requalifying period. If no value is selected here, members will be demoted to the tier that they qualify for based on the number of points they earned during the requalifying period.

    NOTE:  To display this field, right click on the list and use the Columns Displayed feature.

    Lowest Demotion Tier

    Select the lowest tier that members of this tier can ever be demoted to, if applicable. For example, you might have a rule saying that if members have reached the Platinum tier, they can never be demoted to lower than the Silver tier.

    NOTE:  To display this field, right click on the list and use the Columns Displayed feature.

    Grace Period Length and Grace Period UoM

    These fields apply only if points never expire for this tier. Enter values to specify the period that members have to use their points after they are demoted to a tier where points do expire.

    NOTE:  To display this field, right click on the list and use the Columns Displayed feature.

  6. To enter notes about the tiers in this tier class, click the Tier Notes view tab, add a new record to the Tier Notes list, and complete the necessary fields.
  7. If your loyalty program has different sets of tiers for different customers, repeat Step 4, Step 5, and Step 6 until you have defined all of the sets of tiers in the program.
Siebel Loyalty Administration Guide Copyright © 2006, Oracle. All rights reserved.