Is this article for me?
Yes, if you’re using the Yotpo Loyalty Tiers program. If you’re using the old VIP program, please refer to our legacy VIP tiers guide.
Goals and Outcomes
Yotpo’s Loyalty Tiers program gives you flexibility in designing your tier structure, including the ability to use customer tags as tier entry criteria. Customer tags allow you to target specific shoppers and reward them with customized perks and benefits.
In this article, you’ll learn how to use customer tags as entry thresholds in your loyalty tiers program.
How Customer Tag-Based Tiers Work
Customer tag-based tiers use Shopify tags to determine which shoppers qualify for a specific tier. When a shopper has the tag associated with the tier, they enter the tier and receive its corresponding benefits.
Overview
Tags must already exist in Shopify and are case-sensitive. Tags must be created in your Shopify store before you can use them for tag-based tiers. This applies to tags added manually, through automation, or via Shopify Flow. If the tag does not already exist or if the capitalization does not match exactly, customers will not enter the tag-based tier.
Tag-based tiers can be combined with one default threshold type (either points earned or amount spent) within the same program. This means you can create a program that uses points-based + tag-based tiers, or amount-based + tag-based tiers. However, you cannot use all three threshold types together, and each tier can use only a single threshold type.
Tag-based tiers can appear at any level of your tier structure, not just the highest tier.
Tag-based tiers have no expiration rules. Customers stay in a tag-based tier only while the matching Shopify tag remains on their profile. Entry happens when the tag is added, and exit happens only when the tag is removed in Shopify. Because these updates rely on Shopify, there may be a short delay in tier entry or exit.
If a shopper meets the entry criteria for a higher tier, they will be upgraded to that tier even if they still have the tag for a lower tier.
Creating a Customer Tag-Based Tier Threshold
Important
Before you edit or add a new tier, you must first deactivate the program. Learn more about what happens when you deactivate the loyalty tiers program.
To create a customer tag-based tier threshold, follow these steps:
Click the plus icon to create a new tier.
Select Customer tags as the tier threshold type and click Next.
Enter the new tier’s name.
The system will automatically create a customer tag in Shopify in this format: yotpo-tiers-name.
Add the customer tag that will be used as the entry threshold for the tier.
Configure the tier’s rewards and benefits, and save your changes.
When ready, click Activate program to launch the program and trigger a recalculation.
Tip
When reactivating the program after adding/changing tiers, we recommend using the original program start date. This ensures tier eligibility is consistent and customers are reassigned to tiers correctly during the recalculation.
Use Cases
Example 1: Using Shopify Flow to add a tag
Imagine you configure your program with four tiers: one base tier, two points-based tiers, and one tag-based tier. The customer tag is applied using a Shopify Flow workflow that identifies high spenders and tags them accordingly (with a Big Spender tag).
Here’s what the setup might look like in Yotpo:
And an example Shopify Flow workflow:
What this setup achieves:
Even if a customer has only 150 points, which are enough to place them in the Silver tier (entry threshold = 100 points), they will qualify for the tag-based tier if they receive the Big Spender tag via Shopify Flow. In that case, they’ll be placed in the Custom tier.
If that customer later loses the tag (due to a refund or another triggered action), the system will reevaluate their eligibility:
They will be downgraded to the Silver tier if they still have 150 points.
If their points balance falls below the Silver threshold of 100 points, they will be placed in the Base tier.
Note
If your program’s setup is different and the tag-based tier is not the highest tier, customers will always be placed in the highest tier they qualify for, even if they have the tag for a lower tier.
Tier recalculation based on refunds, tag loss, and other actions will depend on the tier placement method you select when activating your program. Learn more about tier placement in the loyalty tiers program.
Example 2: Using a ReCharge subscription product
Another common use case for tag-based tiers is creating a tier for customers who purchase subscription products through ReCharge.
When a subscription is created, ReCharge automatically applies a customer tag (for example, Active Subscriber). To ensure these customers are added to the correct tier, use the same tag in your tier configuration.
If a customer later cancels their subscription, depending on your workflows, you may need to create a Shopify Flow that removes the tag. This ensures the customer is moved to the highest tier they’re still eligible for.
Learn more about ReCharge customer tags in Shopify.