Member Labels

Member labels provide flexible, multi-dimensional segmentation for your membership program. Unlike member classes (which define hierarchical tiers with one class per member), labels allow you to tag members with multiple categories simultaneously for marketing, operational, and analytical purposes.

Understanding Member Labels

A member label is a tag or category that you can apply to members to indicate attributes, preferences, behaviors, or segmentation criteria. Think of labels as hashtags—a member can have many labels, and each label can apply to many members.

Examples of Label Usage:

  • Marketing source: “Facebook2024,” “EmailCampaign,” “InStore”
  • Customer interests: “Electronics,” “HomeGoods,” “Fashion”
  • Behavioral flags: “HighRedeemer,” “LapsedMember,” “BirthdayMonth”
  • Operational tags: “VIPService,” “ComplaintHistory,” “ReferralMember”
  • Geographic segments: “Region-North,” “Region-South,” “Urban”
  • Engagement level: “Highly-Engaged,” “At-Risk,” “Inactive-90Days”

Labels operate independently of member classes. A Gold member might have labels “Electronics,” “EmailCampaign,” and “HighRedeemer” while a Silver member might have labels “HomeGoods,” “InStore,” and “BirthdayMonth.” Labels and classes serve different segmentation purposes.

Labels vs. Classes: Key Differences

Understanding when to use labels versus classes is critical for effective configuration:

Member Class Characteristics:

  • A member has exactly one class at a time (or no class)
  • Classes are hierarchical with defined ranks
  • Classes control benefits, pricing, and tier progression
  • Class assignment is typically long-term and changes infrequently
  • Classes are a core structural element of tier-based programs

Member Label Characteristics:

  • A member can have zero, one, or many labels simultaneously
  • Labels are non-hierarchical—there’s no rank or ordering
  • Labels are used for segmentation, targeting, and filtering
  • Labels can be added or removed frequently as needed
  • Labels provide flexibility without affecting program structure

Use Classes For: Defining benefit tiers, controlling pricing schemes, establishing progression paths, core program structure.

Use Labels For: Marketing segmentation, campaign tracking, behavioral tagging, temporary attributes, multi-dimensional categorization.

Creating Member Labels

To create a new member label:

Access Label Configuration. Navigate to the Membership Module administration and locate the member label setup function. This is typically under Membership Setup > Member Labels or a similar menu path.

Initiate New Label. Click “New” or “Create Label” to open the label definition form.

Define Label Code. Enter a unique code to identify this label in the system. Label codes should be concise and descriptive, like “ELEC,” “FB2024,” or “HIGHRDM.” Use a consistent naming convention across all labels.

Enter Label Name. Provide a descriptive name that clearly indicates what this label represents. Examples: “Electronics Interest,” “Facebook Campaign 2024,” “High Redeemer.”

Set Label Description. Add a detailed description explaining when and why this label should be applied to members. This helps ensure consistent usage across staff members.

Define Label Category. If your system supports label categories, assign this label to a category for organizational purposes. Categories might include “Marketing Source,” “Product Interest,” “Engagement Level,” etc.

Set Effective Dates. Specify when this label is active. Campaign-specific labels might have defined start and end dates, while evergreen labels like product interests might have open-ended effective periods.

Configure Auto-Assignment Rules (if available). Some systems allow you to define rules that automatically apply labels based on member behavior. For example, automatically add the “High Redeemer” label to members who redeem points more than five times in a quarter.

Save the Label. Click “Save” to create the label. It’s now available for assignment to member records.

Assigning Labels to Members

Labels can be assigned through several methods:

Manual Assignment During Member Creation. When creating a new member, select relevant labels from the available list. A member enrolling through a “Spring2024” campaign would receive that campaign label during creation.

Manual Assignment to Existing Members. To add labels to an existing member:

  1. Open the member record
  2. Navigate to the labels section
  3. Select additional labels from the available list
  4. Save the member record

Bulk Label Assignment. For applying labels to many members simultaneously:

  1. Export or select a group of members who should receive the label
  2. Use bulk update functionality to apply the label to all selected members
  3. Or import a file containing member numbers and the label to apply

Automated Assignment via Rules. Configure business rules that automatically apply labels based on triggers:

  • Add “BirthdayMonth” label when a member’s birthday approaches
  • Add “At-Risk” label when a member hasn’t transacted in 90 days
  • Add “High-Value” label when cumulative spending exceeds a threshold

API or Integration Assignment. External systems like CRM platforms, email marketing tools, or analytics systems can assign labels through API integrations based on their own logic and data.

Removing Labels from Members

Labels can be removed as easily as they’re applied:

Manual Removal. Open the member record, navigate to the labels section, deselect or remove the label, and save the record.

Bulk Removal. Select multiple members and use bulk update functionality to remove a specific label from all of them. This is useful when a campaign ends and you want to remove the campaign label from all participants.

Automated Expiry. If labels have effective end dates, they become inactive automatically on the expiry date. Members retain the historical association with expired labels for reporting, but the label is no longer considered active.

Rules-Based Removal. Automated rules can remove labels just as they add them. When a member who had the “At-Risk” label makes a purchase, a rule might automatically remove that label and add an “Re-Engaged” label.

Label Organization Strategies

Effective label management requires organizational strategy:

Use Consistent Naming Conventions. Establish and follow naming patterns:

  • Category prefix: “INT-Electronics,” “INT-Fashion,” “CAM-Spring2024”
  • Descriptive but concise: “HighRedeemer” not “MemberWhoRedeemsPointsFrequently”
  • Avoid spaces in codes: Use “EmailCampaign” or “Email_Campaign” not “Email Campaign”

Create Label Categories. If your system supports it, group labels into categories:

  • Source Labels: Track where members came from
  • Interest Labels: Record product or category preferences
  • Behavior Labels: Flag engagement patterns
  • Operational Labels: Mark members needing special handling
  • Demographic Labels: Segment by age, location, etc.

Limit Active Labels. Avoid creating hundreds of labels. More labels mean more complexity in managing and selecting them. Aim for 20-50 active labels for most programs. Archive or retire labels that are no longer useful.

Document Label Definitions. Maintain clear documentation of what each label means, when it should be applied, and who is responsible for managing it. This prevents inconsistent usage and confusion.

Plan for Scale. Design your label structure to accommodate growth. If you’re creating campaign labels, establish a naming pattern that will work for years (“CAM-2024Q1,” “CAM-2024Q2,” etc.) rather than ad-hoc names.

Using Labels for Marketing Segmentation

Labels excel at creating marketing segments:

Campaign Targeting. Create segments for email campaigns, promotions, or advertising by selecting members with specific label combinations. Target “Electronics” + “High-Value” members with a premium gadget promotion.

Multi-Dimensional Segments. Combine multiple labels to create precise segments. Target members who have labels “Fashion” AND “Email-Campaign-2024” AND “Gold-Class” for a VIP fashion event invitation.

Exclusion Lists. Use labels to exclude members from communications. Members with a “Do-Not-Email” label should be filtered out of email campaign lists.

A/B Testing Groups. Use labels to assign members to test groups. Create labels “TestGroup-A” and “TestGroup-B,” randomly assign members, then measure response rates for each group when testing campaign variations.

Reactivation Campaigns. The “Inactive-90Days” label identifies members to target with reactivation offers. Automated rules keep this label current based on transaction history.

Using Labels for Operational Purposes

Beyond marketing, labels support operations:

Service Level Flags. Tag members who should receive priority service with a “VIP-Service” label. Customer service representatives can see this flag and handle these members accordingly.

Issue Tracking. Apply labels like “Complaint-Resolved” or “Refund-Issued” to track members who have had issues. This history helps provide better future service.

Referral Programs. Tag members who joined through referrals with “Referral-Member” and note the referring member. This supports referral tracking and incentive programs.

Location Associations. Tag members with their primary store or region for location-based analysis and local marketing efforts.

Lifecycle Stage. Use labels to mark where members are in their journey: “New-Member” (first 90 days), “Active-Member,” “At-Risk,” “Lapsed,” “Win-Back.”

Automated Label Management

Automation makes labels more powerful and reduces manual effort:

Behavior-Triggered Labels. Configure rules that add labels based on member actions:

  • Add “Frequent-Shopper” after 10 transactions in a month
  • Add “Big-Spender” when a single transaction exceeds $1,000
  • Add “Rewards-Lover” after three redemptions in a quarter

Time-Based Labels. Rules can add labels based on dates:

  • Add “BirthdayMonth” to all members whose birthday is in the current month
  • Add “Anniversary-Month” to members whose join date anniversary is approaching
  • Add “Membership-Expiring” to members with memberships expiring in 30 days

Inactivity Detection. Automated rules identify disengaging members:

  • Add “Inactive-30Days” if no transactions in 30 days
  • Add “At-Risk” if no transactions in 90 days
  • Add “Lapsed” if no transactions in 180 days

Status Changes. When member attributes change, update labels automatically:

  • Remove “New-Member” label after 90 days
  • Add “Long-Term-Member” label after one year
  • Update “Region-North” to “Region-South” if customer address changes

Cleanup Automation. Schedule processes to remove obsolete labels, expire campaign labels after their effective dates, and consolidate similar labels that serve the same purpose.

Reporting and Analytics with Labels

Labels provide rich dimensions for analysis:

Segmentation Reports. Analyze member counts, transaction activity, and engagement metrics by label. Compare performance across different segments to identify the most valuable label groups.

Campaign Attribution. Track which acquisition sources (represented by source labels) produce the most valuable members over time. Measure lifetime value by source label.

Behavioral Analysis. Study members with behavior-related labels. What’s the average transaction value for “High-Redeemer” members versus overall average? How much more do “Frequent-Shopper” members spend annually?

Interest-Based Insights. Analyze which product interest labels correlate with higher spending or engagement. Use these insights to personalize marketing and product recommendations.

Multi-Label Analysis. Examine members with specific label combinations. Members with both “Electronics” and “High-Value” labels might be prime targets for premium tech product launches.

Label Lifecycle Management

Labels require ongoing management:

Regular Review. Periodically review your label list. Are there labels no longer in use? Labels that have become obsolete? Labels that should be merged?

Retire Obsolete Labels. When campaigns end or label purposes are fulfilled, retire the label. Set an expiry date or mark as inactive so it no longer appears in assignment lists but historical data is preserved.

Consolidate Similar Labels. If you discover multiple labels serving essentially the same purpose (“EmailCampaign,” “Email-Marketing,” “Email-Promo”), consolidate to a single label and migrate members.

Update Documentation. Keep your label documentation current. When purposes change or new labels are created, update the reference documentation so all users understand what each label means.

Monitor Usage. Track which labels are actively used and which aren’t. Labels that never get assigned might indicate unclear purpose or unnecessary complexity.

Common Label Management Mistakes

Avoid these pitfalls:

Creating Too Many Labels. Excessive labels create confusion and make selection difficult. Start with core labels and add more only when there’s a clear need.

Overlapping Label Purposes. Having multiple labels that mean essentially the same thing creates inconsistency. Define distinct purposes for each label.

Forgetting to Remove Expired Labels. Campaign labels that remain active long after the campaign ends clutter the label list. Set expiry dates or manually retire them.

No Naming Convention. Random label names without patterns make it hard to find and understand labels. Establish and follow naming conventions.

Using Labels Instead of Classes. Don’t create labels like “Tier-Gold” or “Level-Premium” when you should be using member classes. Labels and classes serve different purposes.

No Label Maintenance Plan. Creating labels without planning how they’ll be maintained leads to label sprawl. Assign responsibility for each label or label category.

Practical Label Examples

Here are practical label implementations across different program types:

Retail Loyalty Program:

  • Source: “In-Store,” “Online,” “Mobile-App,” “Social-Media”
  • Interest: “Apparel,” “Electronics,” “Home,” “Beauty”
  • Behavior: “Bargain-Hunter,” “Premium-Shopper,” “Gift-Buyer”
  • Engagement: “Weekly-Shopper,” “Monthly-Shopper,” “Quarterly-Shopper”
  • Status: “VIP-Service,” “Store-Favorite,” “Personal-Shopper”

Restaurant Loyalty Program:

  • Visit Pattern: “Lunch-Regular,” “Dinner-Regular,” “Weekend-Guest”
  • Preferences: “Vegan,” “Gluten-Free,” “Wine-Enthusiast”
  • Occasion: “Business-Dining,” “Family-Meals,” “Date-Night”
  • Source: “Reservation-App,” “Walk-In,” “Delivery”

B2B Membership Program:

  • Industry: “Retail,” “Wholesale,” “Manufacturing,” “Services”
  • Size: “SMB,” “Mid-Market,” “Enterprise”
  • Relationship: “Direct,” “Through-Partner,” “Reseller”
  • Product Usage: “Product-A-User,” “Product-B-User,” “Full-Suite”

Choose labels that align with your business objectives and provide actionable segmentation for your marketing and operations teams.

Member labels transform your membership program from a simple tier structure into a sophisticated segmentation engine. Use them thoughtfully to create personalized experiences, targeted campaigns, and meaningful member insights.