Why do brands like Starbucks, Sephora, and Amazon Prime consistently win repeat customers? Their loyalty programs do the heavy lifting. The best part for Shopify merchants—you don’t need a massive budget to create your own. A well-structured loyalty program can increase repeat orders, boost AOV, and convert first-time buyers into loyal brand fans, all while reducing your dependence on ads.
Below is a simplified 7-step guide to help you build a Shopify loyalty program that works for subscriptions, physical products, and digital stores.
Why Loyalty Programs Matter for Shopify Stores
Before building your program, understand why loyalty initiatives deliver such strong returns:
Cheaper than acquisition: Retaining customers costs 5–7x less than acquiring new ones.
More purchases: Members shop more often and engage more frequently.
Higher LTV: Loyal customers spend up to 67% more than new shoppers.
Free growth: Referrals help attract new customers organically.
Step 1: Define Your Goals & Understand Your Customers
Start by identifying the purpose of your loyalty program:
Increase repeat purchases?
Improve subscription retention?
Generate more referrals?
Example: A pet food subscription brand may reward long-term subscribers who stay for 6 months or more.
Then segment your audience:
Budget shoppers: Cashback and discounts
Premium buyers: Early access, VIP benefits, exclusive drops
Matching rewards with audience motivation directly increases participation.
Step 2: Choose the Right Loyalty Program Style
Shopify loyalty programs come in different formats. Pick the one that aligns with your business model.
Program Type
How It Works
Best For
Points System
Earn points per action; redeem for rewards
Everyday and repeat-purchase products
Tiered Program
Unlock perks based on milestones
Beauty, fashion, premium brands
Paid Membership
Customers pay for ongoing perks
Community-based brands
Referral Rewards
Earn rewards for inviting friends
High-trust niches
Tip: Many stores combine points + referrals for better retention
Step 3: Choose a Shopify Loyalty App
To avoid manual tracking, use a Shopify loyalty app.
Easy Loyalty Rewards offers:
Points for purchases, referrals, and social actions
VIP tiers for loyal customers
Automated emails and reward notifications
The right tool removes complexity and ensures your program runs smoothly.
Step 4: Structure Your Earning & Redemption Rules
Create easy-to-understand earning and redeeming rules:
Earning Examples
Account signup → 100 points
₹1 spent → 1 point
Follow on Instagram → 50 points
Referral → 500 points
Redemption Examples
2000 points → ₹200 discount
3000 points → Free product
VIP Tier → Early-access sales
Quick Boost: Offer double points during launch week to increase participation.
Step 5: Brand & Promote Your Loyalty Program
A loyalty program works only when customers know it exists.
Give it a memorable name (e.g., “VIP Insider,” “Glow Club”)
Display it on the homepage, product pages, and checkout
Mention it in newsletters and post-purchase emails
Avoid hiding it in the footer—visibility is key.
Step 6: Track Performance & Optimize
Monitor your loyalty program using KPIs like:
Sign-up rate
Redemption rate
AOV of members
Subscription churn
If engagement drops, adjust:
Lower point requirements
Add better rewards
Send reminders for unused points
Consistent optimization leads to higher lifetime value.
Step 7: Learn From Shopify Success Stories
Top-performing brands that use loyalty programs effectively:
Blume: Points + referrals for Gen Z
Death Wish Coffee: Rewards social engagement
Kylie Cosmetics: Tier-based VIP perks
Use these examples as inspiration but adapt the structure to your brand’s identity.
Final Takeaway
A Shopify loyalty program is one of the most cost-effective ways to increase repeat revenue. With the right structure, a clear reward system, and consistent promotion, you can turn casual shoppers into long-term customers.
Start building your loyalty program today with Easy Loyalty & Rewards and keep customers coming back again and again.
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