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About Tier Assessment Processes and Models

Members of loyalty programs earn qualifying and nonqualifying points based on their activities. Members can qualify for tier statuses, such as Silver Member, Gold Member, or Platinum Member, by earning a specified number of qualifying points in a specified time.

Tier Assessment is a process that assesses member's activities during a given qualifying period of time and determines whether or not a member is eligible for a tier change.

Tier assessment can be based on the following models:

• Anniversary. In this model, the qualifying period starts on the date that a member joins the loyalty program. The member's point balance is always reset to zero every year on the membership anniversary date.
• Fixed date. In this model, the qualifying period starts on a fixed date each year for all loyalty program members. The tier end dates are also fixed for all members. The balance of all the members in the loyalty program is reset to zero at the end of the qualifying period.
• Rolling period. In this model, the qualifying period of a member starts when the member enrolls into the program. The member is not assigned a qualifying period length. Once a member attains a higher tier, the member's tier is effective for a specified period from the date of attaining the new tier even if the rolling balance is not sufficient for the member to remain in the current tier. The member's point balance is never reset to zero in this model. Rather, the balance is calculated based on the past qualifying period.
• Relationship Tier Assessment. In this model, the relative of a member changes tiers when the member attains a specific tier. For example, if a member attains a Platinum Tier, then the member's relative automatically receives a Gold Tier.