# Use loyalty tiers > Loyalty tiers allow you to create tiered loyalty campaigns for customers based on point thresholds they reach. > For the complete documentation index, see [llms.txt](https://docs.talon.one/llms.txt). Customers automatically move to the next tier when they reach the minimum point threshold for that tier. The maximum point value for a tier is one point less than the minimum point value of the next tier. The highest tier has no upper limit on points. Loyalty tier calculation considers only the active points balance. [Negative points](/docs/product/loyalty-programs/profile-based/use-negative-points.md) do not affect a customer's tier. :::note [Subledgers](/docs/product/loyalty-programs/use-subledgers.md) inherit all the tiers. ::: For example, consider the following tiers: - **Bronze**: 100 to 199 points. - **Silver**: 200 to 299 points. - **Gold**: 300 points and above. A customer is in the Bronze tier if they have at least 100 points but fewer than 200. When they reach 200 points, they automatically enter the Silver tier. When they reach 300 points, they move up to the Gold tier. :::note To add customers to a default tier with a zero-point balance, we recommend [creating a tier](/docs/product/loyalty-programs/profile-based/create-pb-programs.md) with the **Point threshold** set to `0`. If the tiers in the loyalty program expire [relative to the tier join date](#expiration-relative-to-tier-join-date), however, customers must earn at least one active point for the `startDate` and `expiryDate` properties to be created for their current tier in the Integration API. ::: Customers can enter higher tiers as soon as they earn enough points, and can be downgraded to a lower tier [immediately](#immediate-tier-downgrade) or [following a schedule](#scheduled-tier-downgrade). You can choose when and how customers are downgraded when [creating a loyalty program](/docs/product/loyalty-programs/profile-based/create-pb-programs.md) or at any time until there are point transactions in the program. ## Immediate tier downgrade With immediate downgrade, each customer is downgraded to a tier that matches their current balance as soon as they don't have enough points to remain in their current tier. Let's imagine a loyalty program with three tiers: Bronze, Silver, and Gold. The downgrade type is immediate. A customer joins the loyalty program on January 1, 2024, and enters the Gold tier with 350 points. On March 10, the customer spends 100 points and is immediately downgraded to the Silver tier. :::note Immediate downgrades do not trigger [tier downgrade](/docs/product/loyalty-programs/loyalty-notifications/overview#tier-downgrade) notifications. ::: ## Scheduled tier downgrade With scheduled downgrade, you can define how long a customer can remain in their current tier before the tier is reevaluated, and you can select the [downgrade method](#downgrade-method). ### Expiration type The expiration settings define when a customer's tier status is reevaluated. Tiers in your loyalty program can be reevaluated: - [Relative to the program join date](#expiration-relative-to-program-join-date). - [Relative to the tier join date](#expiration-relative-to-tier-join-date). - [On an absolute expiration date](#absolute-expiration-date). :::note If points and tiers are configured to expire at the same time, points expire first. This ensures the tier reevaluation is based on the updated active points balance. ::: :::tip Choosing the right expiration type Choosing the right expiration type depends on your loyalty program's goals and structure. Expiration relative to the program join date offers predictability, while expiration relative to the tier join date encourages continuous engagement. On the other hand, an absolute expiration date simplifies the tier management process and is great for loyalty programs that align with business cycles or major promotional periods. ::: #### Expiration relative to program join date With this expiration type, each tier is reevaluated relative to when the customer joined the loyalty program. The expiration date remains tied to the customer's program join date, regardless of any changes in the tier level. Let's imagine a loyalty program with three tiers: Bronze, Silver, and Gold. Tier expiration is relative to the program join date and resets every six months. A customer joins the loyalty program on January 1, 2024, entering the Silver tier with 250 points immediately upon joining. Although the customer spends 100 points in April, they are downgraded to the Bronze tier on July 1, six months after their program join date. Later, in September, the customer makes another purchase and immediately is upgraded to the Gold tier with 350 points. Despite this upgrade, the reevaluation of their current tier remains tied to their loyalty program join date, meaning their Gold tier status is reevaluated on January 1, 2025. #### Expiration relative to tier join date With this expiration type, each tier is reevaluated relative to when the customer entered the tier. The expiration period starts from the date the customer upgrades to another tier, extending their tier status based on this new start. Let's imagine a loyalty program with three tiers: Bronze, Silver, and Gold. Tier expiration is relative to the tier join date and resets every three months, on the last day of the month. A customer joins the loyalty program on January 1, 2024, and enters the Silver tier with 250 points on February 15. Although the customer spends 100 points in April, they are downgraded to the Bronze tier on May 31 - three months after their tier join date, on the last day of the month. Two months later, on July 31, the customer makes another purchase and immediately moves up to the Gold tier with 350 points. The reevaluation period of the Bronze tier is now discarded, and the customer's Gold tier status is reevaluated on October 31, three months after their latest tier join date. #### Absolute expiration date This expiration type sets a fixed tier reevaluation date for all customers within the loyalty program, regardless of when they joined or moved between tiers. The reevaluation date is relative to the tier cycle start date. Let's imagine a loyalty program with three tiers: Bronze, Silver, and Gold. Tiers are reevaluated yearly on January 1. Customer 1 joins the loyalty program in March, 2024 and immediately enters the Gold tier with 350 points. Soon after, they spend nearly all of their loyalty points and earn no points before the end of the year. Customer 2 also joins the loyalty program in March, but enters the Bronze tier in May. Before the end of the year, they move up to the Gold tier with 350 points. Both customers remain in the Gold tier until January 1, 2025, when their tier is reevaluated. ### Downgrade method The downgrade method defines how a customer's tier status is downgraded after reevaluation. If the customer doesn't have enough points to remain in their current tier, they can be downgraded in one of the following ways: - [Match current balance](#match-current-balance) - [Go down one tier](#go-down-one-tier) #### Match current balance With this downgrade method, the customer enters the tier that matches the number of active points in their point balance after their current tier is reevaluated. For example, a customer enters the Gold tier with 350 points. They immediately redeem 200 points and now have 150 points left. The Gold tier has a point threshold of 300 points, so the customer is downgraded to the Bronze tier after the Gold tier is reevaluated. #### Go down one tier With this downgrade method, the customer enters the tier below their current tier after the tier is reevaluated and the customer doesn't have enough points to remain in it. For example, a customer enters the Gold tier with 350 points. They immediately redeem 200 points and now have 150 points left. The Gold tier has a point threshold of 300 points, so the customer is downgraded to the Silver tier after the Gold tier is reevaluated. :::note If the customer does not have enough points for the lowest tier's minimum requirement, they are removed from all tiers, and no current tier is assigned to them. ::: ## Tier reevaluation A tier reevaluation can happen automatically or on a scheduled tier expiry date defined in the [expiration settings](#expiration-type). - **Tier upgrades**: Customers are automatically upgraded to a higher tier after they reach the required active point balance. This occurs immediately after newly added points or pending points become active. - **Tier downgrades**: If a customer does not meet the point requirements for their current tier at the time of reevaluation, their tier status is downgraded. - **Immediate downgrade**: Tiers are reevaluated automatically when points are deducted. - **Scheduled downgrade**: Tiers are reevaluated only on the scheduled expiry date. If a point deduction occurs before this date and the customer no longer meets the tier requirements, they remain in their current tier until the scheduled reevaluation date. - **No change in tier**: If a customer meets the point requirements for their current tier at the time of reevaluation, their tier status remains unchanged.
Examples: Tier reevaluation timing For all the examples mentioned in this table, let's assume that the customer's tier reevaluation cycle starts on 12 October 2025, 07:20:50. For tier reevaluation, time is calculated as follows: **1 week** = 7 days **1 month** = 30 days **1 year** = 365 days Time after cycle start Reevaluation occurs on 1 day(s) 13 October 2025, 07:20:50 1 day(s), End of the day 13 October 2025, 23:59:59 1 week(s) 19 October 2025, 07:20:50 1 week(s), End of the week 19 October 2025, 23:59:59 1 month(s) 11 November 2025, 07:20:50 1 month(s), Last day of the month 30 November 2025, 23:59:59 1 year(s) 12 October 2026, 07:20:50 1 year(s), Last day of the year 31 December 2026, 23:59:59
You can also configure [notifications](/docs/product/loyalty-programs/loyalty-notifications/overview#tier-changes) to inform your customers of tier-related changes. These notifications can only be set up for profile-based loyalty programs with [scheduled tier downgrade](#scheduled-tier-downgrade) and a [relative expiration date](#expiration-type). ## Related pages - [Create profile-based loyalty programs](/docs/product/loyalty-programs/profile-based/create-pb-programs.md) - [Manage loyalty programs](/docs/product/loyalty-programs/manage-loyalty-programs.md)