Tiered Rewards

Tiered Rewards are reward structures found in incentive programs. They are designed to motivate participants and offer escalating benefits based on achievement levels. Specifically, participants earn greater rewards as they reach higher tiers in a program. This creates a clear pathway that encourages ongoing engagement and progression. This structure is commonly used to drive loyalty and long-term participation across sales initiatives and partner activities.  

It typically involves: 

• Clearly defining performance thresholds that unlock increasing levels of rewards 
• Encouraging continued participation by offering progressively more valuable incentives 
• Aligning the rewards structure with strategic goals and audience capabilities 

Businesses implement tiered rewards to build program momentum over time and recognize incremental growth. Unlike base incentives, this type of reward structure sustains motivation by rewarding not just initial success but continuous effort. It also serves to motivate a wider target audience, as some participants might differ in terms of size, capacity, ability, etc. Ultimately, this reward model can strengthen an incentive program by improving engagement and motivating diverse audiences.