Learn · Module detail
how many tiers
Start with the fewest tiers that create a measurable behavioural distinction. Add a tier only when its threshold, benefit, cost, and downgrade rule can be explained and operated without ambiguity.
## The mechanism
A tier is a state with a qualification rule, a benefit, a measurement window, and an exit condition. Separate status from points. A status ladder that changes no decision or benefit adds ledger complexity without a behavioural reason.
## Worked example
A member earning 2 points per dollar on 400 dollars of spend holds 800 points. At a 1 cent point value, that balance represents 8 dollars of liability. If a higher tier changes the earn rate, model the incremental points and the resulting liability before adding the tier.
## Do it
Write the behaviour each tier is meant to change. Set a threshold from observed programme data when available. Price the benefit, test qualification and downgrade, then ask a member to explain the path in plain language.
## Common mistakes
- Adding tiers for prestige. Tie each level to a measurable behaviour. - Hiding downgrade rules. Publish the measurement window and exit condition. - Treating status as free. Include incremental reward liability and service cost. - Using the same benefit at every level. Make the distinction operationally visible.