Tiered Loyalty Program

Your company intends to launch a new Tiered Loyalty Program.  As the Corporate Marketing team, it is your responsibility to design the Tiered Loyalty program and provide incentives that will improve your Customers’ satisfaction and long-term engagement with your company.

Remember that with a Tiered Loyalty Program, each rank – or tier – is defined by a set variety of rewards, services or benefits, which increases in value as customers progress.

Part A:  Describe Your Loyalty Program   (minimum 1 page):

  1. What factor(s) will you use to build tiers within your Loyalty program?  (ex/ Recency, Frequency or Monetary factors; length of time as a member)
  • Based on your description of your Primary Target Customer, describe the incentives that you believe will improve your Customers’ relationship with your company.
  • Create a chart that clearly shows the requirements of belonging to a certain tier as well as the progression of benefits Customers will see as they move from one tier to the next.

M.A.C. Example:

  • Clearly define the Customer information will you need to capture and send to your Marketing database to support your Loyalty Program (all required fields of information).

Part B:  Build Your Database and Tier Customers

  1. In EXCEL, using the fields of information defined above (Part A -3), build a sample Customer database. 
    1. Example: Remember, if you have built a Tiered Loyalty Program based on Frequency, your database must capture how many times the Customers have purchased from your company.
  • Your sample database must include full, realistic information on at least 50 Customers.  Do not copy the database information provided in the M.A.C. example. 
  • Print off the EXCEL Customer database spreadsheet, ensuring clear headings are provided.
  • Using Vlookup, segment the Customers on your database into the tiered program you have developed.  Ensure you are segmenting using a Range (‘TRUE’), not an exact match (‘FALSE’).
  • Required elements to submit for Part B:
    • Random Customer Database
    • Display for the EXCEL vlookup formulas used.
    • LookUp Table
    • Tiered Customer Database

Using vlookups in EXCEL – Resources:



Example provided on black board: MAC Cosmetics:  Do Not Copy:

  • Power point :  ‘Using VLookup to create a Tiered Loyalty program’
  • EXCEL sheets used in MAC example:   ‘Tiered Loyalty Program’ (note:  4 sheets)

Assignment Presentation Requirements:

  • All reports must include a title page including:
    • Company Name, the name and section of this course, title of the assignment,  Instructor’s name, Name(s) and student number(s) of each group member, Due date.
  • This assignment requires students to analyze an actual company operating in Canada.  At no time should a student copy corporate material without proper citations.
  • All reports must include a bibliography, listing all sources of information and images used.  A report handed in without a bibliography will not be marked.
  • All submissions must include a completed Team Score Sheet. 
  • One submission per Group.
  • All reports must be submitted in soft copy through Blackboard.  Assignments must be submitted by midnight of the due date provided.

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