To better understand tier re-upgradation, first read through tier demotion.
Tier re-upgradation happens when a customer’s cumulative spend after demotion still qualifies for a higher tier; they are upgraded automatically on the next purchase.
Let’s take an example of Mr. A to better understand tier upgradation:
This is the customer profile of Mr. A,
- Cumulative Spending: $700
- Tier Thresholds:
- Silver Tier: $500
- Gold Tier: $700
- Retention Threshold (Gold): Spend $250 every 90 days to keep Gold tier
- Initial Tier: Gold (after crossing $700 spend)
Here, Mr. A earns Gold tier after reaching $700 in cumulative spending.
He needs to spend $250 every 90 days to keep his Gold status.
One cycle, Mr. A only spends $100 and gets demoted to Silver tier.
His total spend remains $800, still qualifying for Gold. Mr. A will be demoted to the silver tier, as he has not spent $250 in 90 days to retain Gold tier and will not get perks and privileges of Gold tier.
On his next purchase, he’s automatically upgraded back to Gold and receives a Gold tier snapshot and perks.
