What happens at the end of a qualifying period in the fixed tier model?

In the fixed tier model of a loyalty program, when a qualifying period ends, the qualifying point balance typically resets to zero. This aligns with the design of fixed tier structures where members accumulate points over a set period to maintain or achieve tier status. At the conclusion of this period, points are reset, requiring members to earn new points in the subsequent period to qualify for benefits or promotions associated with their tier.

This mechanism encourages ongoing engagement and activity within the loyalty program, motivating members to continue participating to regain points and benefits for the next qualifying period. It emphasizes the reward for continuous participation and engagement rather than allowing members to carry over points indefinitely, which can dilute the incentive to remain active.

In contrast, the other options (like receiving bonuses, being promoted to the next tier, or enforcing penalties) do not accurately reflect the typical outcomes related to the conclusion of a qualifying period in this model, enhancing the clarity around the purpose and function of the fixed tier structure.