Tier Privileges
A guide to unlock exclusive tier benefits and set up and manage multiple discount rewards for your VIP program tiers
What are Tier Privileges
Tier Privileges (also known as Perks) allow you to offer exclusive rewards to customers based on their loyalty tier status. These rewards can include discount amounts, discount percentages, free shipping, free products, bonus points, and custom rewards.
With the improved Tier Privileges feature, you can now add multiple instances of the same discount type within a single tier. For example, you can create several different discount amount rewards for your Gold tier members, each applying to different products or collections.
Why do you need Tier Privileges (Perks)?
Tier Privileges also have a significant impact on purchase behavior. By offering special discounts and perks, you encourage customers to add more items to their cart to maximize their exclusive benefits, effectively boosting your average order value. Meanwhile, your VIP customers enjoy an enhanced shopping experience where they feel genuinely valued through access to benefits that aren't available to everyone else.
From a competitive standpoint, a well-designed tier privileges system helps your loyalty program stand out in the marketplace. When customers can clearly see the increasing benefits as they progress through your tiers, they're motivated to reach higher levels—creating a natural progression path that drives engagement. And with the ability to now add multiple discount types targeting specific products or collections, you can create a highly customized shopping experience that aligns perfectly with your business strategy and customer preferences.
Understanding the Rules
Tier Privileges are set by the merchant and can include one or more rewards. Once a member reaches a specific tier, all their orders automatically receive the associated benefits. Here's a quick breakdown:
Select Rewards: Merchants choose rewards like discounts, free shipping, products, or bonus points.
Automatic Application: Once a member reaches a tier, selected rewards are automatically applied to all future orders.
Comparing Tier Privileges vs. Tier Entry Rewards
Before setting up your rewards, it's important to understand the difference between Tier Privileges and Tier Entry Rewards:
Frequency
Applied to all future purchases while in the tier
One-time use only when first reaching a tier
Purpose
Provides ongoing benefits to maintain customer loyalty
Provides immediate gratification for tier achievement
Application
Automatic application to qualifying orders
Requires customer to redeem a specific reward
Duration
Continuous until tier status changes
Expires after single use
1. What is Tier Entry Rewards
"Entry rewards" are incentives given to customers when they join a loyalty program or reach a new tier, designed to boost engagement and retention with immediate benefits. "Entry rewards" are valid for one-time use only.
2. The difference between Tier Privileges and Tier New Entry Rewards
The key difference is that Tier Privileges offer ongoing benefits for all purchases once a tier is reached, while Tier New Entry Rewards provide one-time incentives when customers reach a new tier. Privileges encourage long-term loyalty, while Entry Rewards offer immediate incentives.
How to Set up Tier Privileges
Select and configure privilege rewards
Under Privileges reward, select one of the following options:
Discount Amount: this discount amount reward will be automatically applied to all customer orders
Discount Percentage: Customers will receive an X% discount code, this will be automatically applied to all customer orders
Free Shipping: Customers will receive a free shipping discount code for their orders
Free Product: Customers will receive a free product with each purchase
Bonus Points: Customers will receive bonus points each time they successfully place an order
Custom reward: set up a custom reward that you want to give your customer
Configure the selected reward with specific details:
For Discount Amount: Enter the discount value and currency
For Discount Percentage: Set the percentage and any minimum purchase requirements
For Free Shipping: Set any order minimum and shipping restrictions
For Free Product: Select products eligible for the free gift
For Bonus Points: Specify how many bonus points will be awarded
For Custom Reward: Enter a description of the custom benefit
Set additional conditions (if applicable):
Apply to: Choose whether the discount applies to all products, specific collections, or specific products
Minimum order amount: Set a minimum purchase requirement
Maximum discount amount: Limit the total discount a customer can receive
Click Add Another Privilege to add more benefits to the same tier
When finished adding all privileges, click Save
Managing multiple discount privileges
With the enhanced Tier Privileges feature, you can now:
Add multiple instances of the same discount type within a tier
Target different products or collections with each discount
Create up to 25 automatic discounts across all your tiers (Shopify limit)
Customize each discount with different conditions and amounts
Each privilege will create its own automatic discount in Shopify, allowing for more flexible and targeted rewards.
Important Note
1. Combinate discounts
When you use the combinations feature with privileges rewards, for order discounts, if there are more than two discount programs, only the one with the highest discount will be applied.
Example: A gold-tier member will enjoy privileges including a 10% discount, $10 off, and free shipping. So, when this member purchases an order worth $200, they will receive a $20 discount (10% off) and free shipping
2. Set up a maximum of privileges rewards
Currently, you can set up a maximum of 5 privileges rewards across all tiers. This means the total number of privileges rewards from all tiers cannot exceed 5.
Examples of effective tier privilege structures
Example 1: Fashion retailer with category-specific discounts
Gold Tier Privileges:
15% off all accessories (Percentage Discount targeting Accessories collection)
10% off all footwear (Percentage Discount targeting Footwear collection)
Free shipping on all orders (Free Shipping)
2x points on all purchases (Bonus Points)
Example 2: Beauty store with brand-specific offers
VIP Tier Privileges:
$15 off all orders over $75 (Discount Amount)
20% off Brand A products (Percentage Discount targeting Brand A collection)
15% off Brand B products (Percentage Discount targeting Brand B collection)
Free product sample with every purchase (Free Product)
Example 3: Home goods store with seasonal benefits
Premium Tier Privileges:
10% off all orders (Percentage Discount)
25% off seasonal items (Percentage Discount targeting Seasonal collection)
$20 off orders over $100 (Discount Amount)
Free shipping on orders over $50 (Free Shipping)
Important considerations
Multiple discount handling
When multiple discounts could apply to the same product, Shopify will automatically apply the discount that gives the customer the highest value. For example:
If a Gold tier member has both a 10% discount and a $10 fixed discount privilege, and they purchase a $50 item, they'll receive the $10 discount (since 10% would only be $5).
If they purchase a $200 item, they'll receive the 10% discount ($20), as it's more valuable than the $10 fixed discount.
Automatic discount limitations
While Shopify now allows up to 25 automatic discounts, it's best to use them strategically to avoid confusion.
If you had privileges set up before this enhancement, they will be migrated to the new system the first time you update an existing discount.
Migration of existing privileges
When you update an existing tier privilege:
The system will automatically migrate your privileges to the new format
Each privilege will be separated into its own individual automatic discount
Your existing settings will be preserved during this migration
New privileges added after the migration will follow the new structure automatically.
FAQs
Will all my privileges work immediately after migration?
Yes, the migration process is designed to maintain all your existing privileges without disruption. The only change is in how they're managed behind the scenes.
Is there a limit to how many privileges I can add to a single tier?
While you can technically add up to 25 automatic discounts across all tiers (Shopify's limit), we recommend keeping your tier benefits clear and manageable. Consider what makes sense for your customers and what you can effectively promote.
Can I still use Tier Entry Rewards alongside Tier Privileges?
Absolutely! Tier Entry Rewards and Tier Privileges serve different purposes and work well together. Entry rewards provide immediate gratification when customers reach a new tier, while privileges offer ongoing benefits that encourage customers to maintain their status.
What happens to privileges when a customer changes tiers?
When a customer moves to a higher tier, they'll lose access to their previous tier's privileges and gain access to their new tier's privileges. If they drop to a lower tier, the same process applies in reverse.
Will my customers be confused if they see multiple discounts?
Customers will only see the automatic discount that gives them the highest value applied to their order. The others will not appear at checkout, preventing confusion.
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