What is one feature of the tier loyalty system?

A tier loyalty system is designed to reward customers based on their purchasing behavior, specifically encouraging repeat purchases. In this system, customers earn points or benefits that can lead to higher tiers of rewards as they continue to buy products or services from the retailer. The underlying goal is to foster customer loyalty by providing incentives that make customers feel valued and appreciated, ultimately motivating them to shop more frequently.

The other choices do not align with the foundational principles of a tier loyalty system. For instance, offering discounts only to first-time customers does not promote long-term engagement. Eliminating the need for customer service contradicts the relationship-building aspect inherent in loyalty programs. Lastly, while some loyalty programs might charge for premium memberships, a tier system is primarily focused on rewarding purchases rather than imposing fees. Thus, the feature of encouraging repeat purchases is central to the effectiveness of tier loyalty systems.