E-commerce tips
How to set up a loyalty program on Shopify: Step-by-Step
By Emma on August 20th, 2025
Table of content
- What is Shopify’s customer loyalty program?
- Why loyalty programs are essential for Shopify merchants
- Step-by-step guide to launch loyalty programs for your Shopify stores
- Best Shopify loyalty programs for your business
- Tips on implementing loyalty programs for your business
- Common issues when implementing Shopify customer loyalty programs
- Conclusion
- FAQs
If you are having trouble keeping your customers coming back, learning how to set up a loyalty program on Shopify should be your next strategic move.
The numbers don’t lie. According to Square, 78% of customers surveyed said that loyalty programs make them more likely to continue doing business with a brand. That means nearly 8 out of 10 shoppers are basically telling you that they want to be rewarded for their loyalty.
But it’s still easier said than done. Modern loyalty programs aren't just about collecting points anymore. They're about creating genuine connections with your customers and giving them real reasons to choose your store over the countless other options online.
In this article, we will explain the basics, then dive into how to set up a Shopify customer loyalty program, some tips and common mistakes, as well as our recommendation for the best Shopify loyalty program apps in 2025.
What is Shopify’s customer loyalty program?
A loyalty program is a marketing strategy that utilizes a system of rewards, such as free gifts, discounts, and other exclusive incentives, to encourage customers to return to your business or refer their friends and family.
There are many perks you can use to incentivize your customers, but they all focus on boosting customer lifetime value, increasing retention, and building long-term relationships. For Shopify merchants, loyalty programs are smart investments that can have a long-lasting impact over time.
Why loyalty programs are essential for Shopify merchants
The best loyalty programs for Shopify are powerful tools that can completely change how your business grows. If done correctly, here’s how a successful loyalty program can bring value to your business:
Improve customer satisfaction: Everyone likes getting extra value for the money they spend. When customers get more through rewards and incentives, they become more satisfied with their experience of your brand. This makes them even more likely to return again.
Increase average order value: Loyalty programs create motivation to spend more. When customers see that the rewards are worth the extra cost, they don’t hesitate to increase their order size. Since they already trust your products, they feel more confident making repeat and larger purchases.
Boost customer retention: Loyalty programs give customers a reason to stay and make more purchases to get their rewards. This turns one-time buyers into repeat customers who don't want to lose their ongoing progress.
Show your appreciation: When you give the right kind of extra value to your customers, they feel appreciated and recognized for their loyalty rather than taken for granted.
Increase customer lifetime value: Rewards and extra value from loyalty programs can motivate your customers to return and shop more. Over time, this increases each customer’s value to your business.
Step-by-step guide to launch loyalty programs for your Shopify stores
Setting up a loyalty program on Shopify requires more than just installing an app and setting up some points. The most successful loyalty program campaign rewards the right behaviors, offers meaningful incentives, and builds genuine excitement among customers.
Let’s explore these 7 steps to create a loyalty program that attracts customers and keeps them coming back:
Understand what your customers want
Your loyalty program will not mean much to your customers if it doesn’t provide what the customers actually want.
Before you run any loyalty programs for your Shopify stores, take time to learn what motivates your customers to buy and come back. Look at your existing data to see which products they purchase most often, and how much they typically spend. Pay attention to customer support conversations and reviews to spot patterns in what they value about your brand.
When you have a clear understanding of your customers, you can create rewards and incentives that feel more personal and valuable.
💡To track customer data on your Shopify store, go to Analytics in the Shopify Admin menu, then click on Reports. On the Search Report, type down what reports you want to view.
Define your goals and objectives
When you know your customer personas, it’s time to set a concrete goal for what you want to achieve from this loyalty program campaign.
Although all loyalty programs are designed to encourage customers to come back to your business, they differ in how they achieve this goal. For instance, a candy store may want to increase its customers’ purchase frequency with “Buy 10 times, get one free”. On the other hand, a clothing brand may want to increase customers’ average order value with rewards like “spend $100, get $20 off your next order.”
💡A helpful tip is to define your objectives based on the S.M.A.R.T. model, which stands for Specific, Measurable, Attainable, Relevant, and Time-bound. For example, instead of saying “I want more loyal customers,” set a specific goal like “increase repeat purchases by 25% within six months.”
Determine your loyalty program strategies
Now, you must decide how to achieve your goal. Your Shopify loyalty program strategies need to address three key areas:
Understanding your customer segments.
Setting the right reward values.
Determining how easily customers can earn rewards.
Not all customers interact with loyalty programs the same way, so you need to understand each type to create the right incentives. Here are 4 customer segments to focus on when designing your rewards:
Engaged loyals: These are your best customers who already love your brand and actively participate in everything you do. They'll write reviews, share products, and refer friends without much incentive.
Game players: They love the thrill of the game. They are hunters who are dedicated to getting the most out of these loyalty programs but paying no attention to the brand at all.
Brand-driven: These customers are devoted to your brand but don't engage much with loyalty programs or marketing campaigns.
Belongers: This group is nearly equal to casual shoppers. They have made one or two purchases in the past, but their engagement is low, and they are not considered loyal customers.
Another crucial factor is setting the right reward value for your Shopify loyalty program. The sweet spot you want is offering rewards valuable enough to drive repeat purchases while keeping your profit margins healthy. When you get this balance right, customers feel excited about earning rewards and staying loyal to your brand, while you build a sustainable program without hurting your bottom line.
You should also pay attention to how easily your customers will gain the rewards. A loyalty program that is too easy to achieve will make your rewards feel cheap and worthless. But if your program requires thousands of dollars in purchases over multiple years to claim a single reward, customers will get frustrated and give up before earning anything meaningful.
💡According to Smile.io, a good rule of thumb is to make it possible for customers to redeem their first reward after 1-2 purchases.
Pick a program type that matches
Not every business can use the same point-based programs you normally see. To maximize your Shopify loyalty programs, consider your business size, your customers’ purchase frequency, and what kinds of products you are selling.
Let's look at the most popular type of loyalty program and how you can use it:
Point-based loyalty program: Also known as Earn and Burn. Your customers can accumulate and then redeem points for perks or freebies. They earn points by making purchases, leaving reviews, and more. This structure is suitable for businesses with frequent, smaller transactions with low order values, like fashion retailers and grocery stores.
Tiered loyalty program: This type of loyalty program is based on customers’ spending or engagement with you. As customers reach higher ranks, they unlock better tiers with more valuable rewards and exclusive perks. This works best for businesses where customers have very different spending levels, such as luxury or beauty, with a typical example of Sephora’s Beauty Insider.
Paid loyalty program: Like the name indicates, customers pay an upfront fee to access exclusive benefits and perks throughout the year. Before launching this program, calculate whether your benefits genuinely save customers more money than they're paying in fees. A successful case you can refer to is Amazon Prime.
Game-based loyalty: This program adds gaming elements like challenges, competitions, or collectible rewards to make earning loyalty points more exciting and interactive. A great example of this is the famous McDonald’s Monopoly game.
💡If you want a simple way without hassle workarounds to implement loyalty programs on Shopify, consider using store credit. This approach gives customers account credits they can use on future purchases, creating an effective incentive to return. Take inspiration from Witch, Please! case studies. To avoid confusing point-based programs, the UK-based store has switched to store credit and has seen a significant $34,157 in total sales within just two months.
Decide on what Shopify loyalty program apps to use
Since Shopify does not offer a built-in loyalty program function, you have to find your best loyalty apps on the Shopify app store.
Picking the right loyalty program app for your Shopify store can feel overwhelming with so many choices. Here are the most important factors to consider when making your choice:
Program features: Make sure the app offers the reward types you want. Check if customers can earn rewards the way you imagine. Look at redemption options too: can customers redeem rewards for perks smoothly? The best apps let you customize everything from point values to reward messages, so your program feels uniquely yours.
Compatibility: If you already use other apps in your store, make sure your loyalty program works well with them. Apps built for Shopify are more likely to work well together, and many popular Shopify loyalty program integrations are ready-made. If apps don't connect directly, you can use tools like Zapier or Shopify Flow to bridge them, or you may need a developer for custom connections. If you sell in person, make sure it is also compatible with Shopify POS.
Support: Choose an app that offers reliable customer support when you run into issues or need help setting up your program. Look for multiple support channels like live chat, email, or phone support during your business hours. Check if they provide helpful resources like video tutorials and knowledge bases. If you serve customers in multiple languages, make sure the app supports those languages.
We will look at some of the best loyalty apps on the Shopify app store in the following section.
Launch your loyalty programs with clear information
After your campaign has gone live, don’t forget to tell your customers what perks and rewards are waiting for them.
The best way to do this is to create a standalone page just for your loyalty campaigns. This page should contain all the information about the reward structure and how your customers can earn points and redeem them. Then, use different channels like email, SMS, social media, or on-page banners to increase awareness.
To avoid confusion and protect your business, create clear terms and conditions for your loyalty program that customers can easily find and understand. Include important details like when points expire, spending limits, and what happens if they return items. Monitor your program regularly for any unusual patterns like fake accounts, point farming, or abuse of rewards systems.
Track and optimize
The key to guaranteeing success is to manage your Shopify loyalty program carefully.
Most loyalty program apps will offer a performance dashboard to track your loyalty program performance on Shopify. Pay close attention to key metrics like enrollment rate, redemption rate, customer lifetime value, and repeat purchase behavior.
When you have gathered enough data on what your customers respond well to and what’s not, you can start testing new ideas to make your program even more appealing.
Best Shopify loyalty programs for your business
To make things easier, we have curated a list of Shopify loyalty apps for comparison. Here are some of the best Shopify loyalty program apps to look out for:
Pricing structure | Pros | Cons | Customer ratings | |
|---|---|---|---|---|
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| 4.9/5.0 (3,944 reviews) | |
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| 4.8/5.0 (1,182 reviews) | |
|
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| 4.9/5.0 (1,453 reviews) | |
|
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| 4.8/5.0 (479 reviews) |
Tips on implementing loyalty programs for your business
To make your implementation process go smoothly, these loyalty program's best practices will help you get it right from day one:
Stay true to what you stand for
Your loyalty program should align with your brand values. Since your customers already love what your business stands for, your rewards should reflect those same principles.
For example, if you're an eco-friendly brand, offer rewards like recycled freebies or tree-planting donations instead of generic discounts. If you're known for quality, give premium perks like early access to new products or exclusive items. When your rewards match your brand personality, customers see them as genuine appreciation rather than just another marketing push.
Provide real value to your customers
Be sure to offer rewards that your customers want to use. Survey your customers or look at your data to see what excites them most. If your rewards feel cheap or irrelevant, customers won't bother participating, and they might even question whether your brand truly values them.
💡 When designing your loyalty program, the reward or perk should be worth at least 10% of what they spent to earn the reward.
Leverage intangible incentives
It’s not all about discounts and freebies. The most powerful incentives are the ones that make your customers feel special.
Consider intangible benefits such as early access to sales, exclusive product previews, or members-only content that creates a sense of belonging. These special experiences tap into customers' desire for recognition, which is much more memorable than money off their next purchase.
Keep it simple
Even if you have tons of creative ideas for your loyalty program, it is best to keep it straightforward.
That said, customers should understand exactly how to earn points and what they can get with them. Make your earning rules crystal clear, for example, “earn 1 point for every dollar spent". Avoid confusing tier systems or complex expiration dates that frustrate customers. At the same time, the program must make it easy to redeem rewards, offering a variety of options in terms of redemption. Infographics and visuals are great ways to make programs easier to understand, clearing out all the mists and building credibility.
Remember, a simple program that people use is much better than a fancy one that sits ignored.
Personalize your offer
According to Deloitte Digital, customers know that their data is being collected. So they expect brands to know them and create personalized loyalty experiences. If you just offer generic discount rewards, chances are they will be disappointed and leave your business.
Instead, take advantage of the data you have to tailor their experience. Send birthday rewards, create exclusive member events, recommend products they'll want, and celebrate their anniversaries with your brand.
Common issues when implementing Shopify customer loyalty programs
Setting up a loyalty program for your Shopify store is exciting, but unexpected challenges can turn the process into a headache. That’s why we’ve got you covered with some of the most frequent problems Shopify merchants encounter and how to solve them:
Technical consideration: Before you install any loyalty app, make sure it plays nicely with your existing Shopify setup and won't slow down your store. Check whether the app works with your current theme and tech stack. If you have a physical store, confirm the loyalty app connects properly with Shopify POS. Also, test the app thoroughly on mobile devices since many customers will interact with your loyalty program on their phones.
Customer service concerns: Be prepared for customer questions and support requests once your loyalty program goes live. Make sure your apps offer reliable support when you or your customers run into issues. Train your staff to handle common scenarios like expired points or returned items.
💡Be careful that there is a difference between native Shopify gift cards/store credit and 3rd-party apps’ loyalty program rewards, as most merchants often confuse these two when setting up loyalty programs.
Conclusion
Setting up a loyalty program on your Shopify store might seem overwhelming at first, but breaking it down into steps will help you manage your Shopify loyalty program better.
Remember, the key is to start with understanding what your customers want and what you want to achieve, then choose the right strategy, program type, and app that fits your technical needs and budget. Finally, keep your loyalty program simple enough that customers can figure it out quickly. Don’t forget to track and improve for an even better customer experience.
A well-designed loyalty program can transform casual shoppers into loyal customers who not only buy more frequently but also recommend your store to their friends. With the right approach and a little patience as you fine-tune the details, your Shopify loyalty program can become one of your most valuable tools for building lasting customer relationships and growing your business.
FAQs
-About Author
Emma C.
As the Chief Marketing Officer at KOIN app, I’m here to build a robust ecosystem by collaping with Shopify apps. Together, we can create seamless integrations that add more value to our shared customers.
KOIN helps merchants retain customers, increase repeat purchases, and drive loyalty by offering cashback and store credit rewards.
📩 Let’s connect! emma@getkoin.io
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