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Tier-Based Loyalty Program Economics

Model the economics of tier-based loyalty (Silver/Gold/Platinum), reward cost per tier and LTV uplift.

Loyalty
Avg annual spend / tier
Reward % per tier
Total annual profit
$1,530,000
TierMembersRevenueProfit
Silver6,000$1,200,000$480,000
Gold3,000$1,500,000$555,000
Platinum1,000$1,500,000$495,000
Platinum reward rate higher
Worth it if tier driven LTV uplift exceeds reward cost delta

About this tool

Tiers gamify loyalty but add cost. Calculator models reward delta vs LTV delta at each tier.

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