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Create a Tiered Loyalty Program

Flowhub Tiered Loyalty makes it quick and easy to reward your best customers. In this article, we'll guide you through building a tiered program from scratch so your team can apply the right rewards automatically at checkout.

Written by Madison Bunce

Before You Begin

  • Tiered Loyalty is available only for dispensaries using Flowhub's native loyalty program. It is not supported with third-party loyalty integrations.

  • You must have all “Loyalty” permissions on your Role to make changes to Loyalty in Flowhub. If you don't see the Loyalty menu, your store may not have it activated. Contact help@flowhub.com to turn it on.

  • Customers will advance automatically once they earn enough qualifying points to reach the next threshold.


How to Build Your Tiered Loyalty Program

Step 1: Create the Tiered Loyalty Program

  1. Navigate to Marketing from the left navigation, then select Loyalty at the top of the page.

  2. Select Create a New Program.

  3. Choose Tiered Loyalty as the program type.

Step 2: Design the Tiers

  1. Determine if the program is for Medical Patients, Recreational Patients, or Both

  2. Points Expiration: Decide if points should expire after a certain amount of time, or not expire at all. We recommend a rolling 365 day expiration date.

  3. Tier Expiration: Decide if a member’s tier will be reset based on their current points balance.

  4. Build the Tier Levels: add up to 5 tiers and determine the threshold of points for a member to advance to the next tier.

  5. Point Redemption: Set the redemption value of points spent for each tier.

  6. Point Accrual: Set the accrual rate of points earned by customers for each transaction.

    1. By Time: Set unique earning rate windows for points. Ex. Gold Members earn 1.5x points before 2pm .

    2. By Group: Give customer groups unique accrual rate: Ex. Gold Members in the Veterans Customer Group earn double points on weekdays.

Note: New customers begin at your base tier and move up automatically as they earn points.

Step 3: Push Changes to Save

Click"Push Changes" to set your new tiered loyalty program live.

A customer's current tier displays in several places:

  • At checkout, so your team applies the correct earning rate, redemption value, and tier-specific deals automatically.

  • In Customer loyalty reports, in the Analytics area.

Great work! 🥳

You've created a Tiered Loyalty program for your dispensary. New customers will start at your base tier and earn their way up, with the right rewards applying automatically at checkout, giving every shopper a reason to come back and climb.


How to Design Your Tiers

A tiered program works best when each level feels reachable and worth chasing. Use the guidance below to decide how many tiers to offer, where to set thresholds, and how to set your rates.

How Many Tiers to Create

We recommend 3–5 tiers, including your base tier.

  • Three tiers (for example, Silver, Gold, Platinum) is the most common starting point and the easiest to manage.

  • Fewer than three rarely feels like a ladder, so customers have little reason to climb.

  • More than five can make higher tiers feel out of reach and adds upkeep for your team.

How to Set Your Thresholds

Thresholds are the qualifying points a customer needs to reach each tier. Set them against a year of realistic spend, since qualification uses the rolling 12-month window.

  • Start your base tier at 0 so every new customer is enrolled automatically.

  • Make the first jump achievable — a regular monthly shopper should reach your second tier within a few months. An early win keeps customers engaged.

  • Widen the gaps as you climb so the top tier signals genuine VIP status without becoming unreachable.

  • Anchor to spend, then convert to points — decide what annual spend should reach each tier, then multiply by your base earning rate to get the threshold.

How to Set Your Earning and Redemption Rates

  • Earning rate (points per dollar): increase it modestly at each tier so moving up feels rewarding but stays sustainable — for example, 1 point per dollar at base, rising to 1.5 at the top.

  • Redemption rate (value per point): hold it steady across tiers, or sweeten it slightly at the top to reward your most loyal shoppers.

  • Model your give-back: your effective reward is the earning rate multiplied by the redemption value. Calculate it for each tier and confirm it sits comfortably within your margins before going live.

💡 Tip: Change one variable at a time when you adjust a live program. Raising both the earning rate and the redemption value at once can increase your give-back faster than expected.

What a Good Program Looks Like

Strong tiered programs tend to share a few traits:

  • Clear, memorable tier names that customers and budtenders recognize instantly.

  • An achievable first jump that delivers an early win.

  • A real reason to climb at every level — better earning, better redemption, or exclusive deals.

  • A top tier that feels like VIP status yet is reachable by your most loyal customers.

  • Give-back that's modeled against margin, so the program stays profitable as customers move up.

Example structure (illustrative only — set your own values):

Tier

Threshold (rolling 12-mo points)

Earning rate

Redemption value

Example exclusive

Silver (base)

0

1 pt / $1

$0.01 / pt

Gold

1,000

1.25 pt / $1

$0.01 / pt

Early access to new drops

Platinum

3,000

1.5 pt / $1

$0.0125 / pt

Platinum-only discount

Note: These numbers are an example to show the shape of a program. Choose thresholds and rates that fit your store's pricing, margins, and customer base.


FAQs

How many tiers can I create?

  • Up to 5. We recommend between 3–5 tiers. That's enough to create meaningful levels without making the program hard to manage.

How do customers move up a tier?

  • Automatically. When a customer earns enough points within the rolling 12-month window to reach the next threshold, they advance to that tier.

If a customer redeems a lot of points, will they drop to a lower tier?

  • No. Tier qualification is based on points earned, not a customer's current balance. Customers hold their tier for a year from the date they qualified, regardless of redemptions.

Can I use Tiered Loyalty with a third-party loyalty integration?

  • No. Tiered Loyalty is available only for dispensaries using Flowhub's native loyalty program.

Does this work across multiple locations?

  • A customer's tier reflects the store they're shopping at. If your locations run separate loyalty programs, a customer could be in different tiers at different stores.

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