In such a loyalty program, the client is awarded a small prize when he reaches a certain level. The higher the level, the more significant the reward. In this way, companies manage to maintain interest in participating in the program.
For example, leveling is one of the conditions of the club program of the chain of sporting goods stores - Sportmaster. Having made any purchase, the client can receive a regular club card. But having accumulated the amount cryptocurrency data of purchases above a certain amount, you can increase the card level. Naturally, the owner of a silver and gold card receives more benefits and bonuses than the owner of a regular one.
The main drawback of this method is that the interval between purchase and reaching a loyalty program level is too long. Most buyers simply forget about the program or do not have time to become interested in it.
Leveling is used both in programs for the commodity business and in the field of selling booking services, insurance, etc.