Do tiered loyalty programs work?

“Are you a member of our loyalty program?” It’s one of the most common questions we get when making a purchase these days. It’s become a standard step in the purchase process to scan a QR code or provide an email address or phone number to start earning points and rewards with your favorite brands.
The member provides the brand with their basic information and makes purchases. In return, the brand provides rewards like points towards discounts, exclusive benefits or free products. They may even reward them for their purchases and other engagements at different levels of appreciation ( tiers) throughout the customer journey.