Can Tiered Coupon Codes Increase Customer Loyalty?

Tiered coupon codes drive customer loyalty by exchanging progressively better incentives for repeat purchases or engagement. This creates clear “next step” goals, lifts second-order conversions, and encourages customers to return sooner while feeling rewarded for progress.

A practical structure is Good/Better/Best (e.g., 10% off first order, 15% after a referral or second purchase, 20% after a milestone). Protect margins with caps (per-user limits, single-use codes, non-stackable rules) and fixed time windows. For step-by-step configuration ideas, see the Tiered Rewards Guide.

Measure impact beyond redemptions: track repeat purchase rate, AOV by tier, time-to-next-order, and LTV lift versus a flat discount. Enforce code limits and eligibility in the Rewards Setup – Reward Tab, and review weekly cohorts to promote high-performing tiers and retire low-ROI steps.