How to Set Up a Loyalty Program on Your Shopify Store: A Step-by-Step Guide

Editorial Note: This article was originally written by Dastan Chikeev and later updated for relevance and clarity by Polina Kulikova.

‍

In today’s fast-paced eCommerce world, acquiring new customers is becoming more expensive — while keeping existing ones has never been more valuable. With rising ad costs and increasing competition, customer retention is no longer a nice-to-have; it’s a core growth strategy.

That’s where loyalty programs come in.

Loyalty programs are powerful tools designed to boost repeat purchases, deepen customer relationships, and increase Customer Lifetime Value (CLV). Instead of constantly chasing new traffic, they help Shopify store owners build long-term connections with the shoppers they already have — turning occasional buyers into loyal brand advocates.

If you run a Shopify store, setting up a loyalty program might be the smartest move you make this year.

In this guide, we’ll explore what loyalty programs are, why they matter, what features to look for, and how to set one up using top-rated Shopify apps. 

To set up a loyalty program on Shopify, follow these steps:

1. Choose the right loyalty program type — points-based, tiered, or perks-driven
2. Select a loyalty app from the Shopify App Store — such as Growave, Smile.io, or LoyaltyLion
3. Customize your rewards and earning rules — align incentives with your brand goals
4. Integrate the program with your tech stack — connect tools like Klaviyo, Gorgias, or POS
5. Promote your loyalty program across all channels — banners, pop-ups, emails, and SMS
6. Track performance and optimize — monitor key metrics and fine-tune your program for growth

‍

Let’s dive in!

What Is a Loyalty Program for Shopify Stores?

A Shopify loyalty program is a structured rewards system designed to incentivize and retain customers by offering perks in exchange for engagement. These programs help eCommerce brands build stronger relationships with their customers by rewarding repeat purchases, referrals, product reviews, and even social media interactions.

At its core, a loyalty program gives customers a reason to return — by turning every action they take into a benefit.

Common eCommerce rewards include:

• Points-based systems: Customers earn points for every dollar spent, which can later be redeemed for discounts, free products, or exclusive perks.
  
  
• Tiered programs: Loyalty levels (like Bronze, Silver, Gold) reward shoppers based on their activity, encouraging them to spend more to unlock better benefits.
  
  
• Cashback and credit: Instant or delayed rewards in the form of store credit or cashback to use on future purchases.
  
  

For Shopify merchants, loyalty programs are more than just customer perks—they're strategic tools for increasing customer lifetime value (CLV), improving retention, and standing out in a saturated market.

Why Loyalty Programs Are Important for Shopify Merchants

Customer acquisition costs are rising fast—making it more expensive than ever to bring in new shoppers. In fact, it can cost 5 to 7 times more to acquire a new customer than to retain an existing one. For Shopify merchants, this makes customer retention not just important, but essential for long-term growth.

That’s where loyalty programs come in.

A well-designed Shopify loyalty program helps brands create emotional connections by rewarding customers for their ongoing support. These programs encourage shoppers to come back, make more purchases, and engage with your brand on a deeper level.

Here’s how loyalty programs deliver value:

• Boost repeat purchases by offering rewards that incentivize customers to return
  
  
• Increase average order value (AOV) through perks tied to spending thresholds or product bundles
  
  
• Improve customer satisfaction by making buyers feel recognized and appreciated
  
  
• Enhance conversion rates by creating urgency with point expiration or limited-time rewards
  
  

By turning one-time shoppers into repeat customers, Shopify loyalty programs not only boost revenue but also reduce reliance on costly ad campaigns and one-off promotions.

‍

Key Features of a Successful Loyalty Program

A loyalty program is more than just a way to reward purchases — it’s a strategic tool that encourages long-term engagement and boosts profitability. While its primary purpose is customer retention, a well-crafted loyalty program also helps increase average order value (AOV), repeat purchase rates, and brand loyalty over time.

Here are the key loyalty program features that make these systems effective for Shopify merchants:

1. Points for Purchases, Referrals, and Engagement

Customers earn points for common actions like making purchases, referring friends, leaving reviews, or following your brand on social media. This customer points system encourages repeat interactions and allows brands to reward both transactional and non-transactional behavior.

‍

2. VIP Tiers and Exclusive Perks

Adding VIP rewards through tiered levels (e.g., Bronze, Silver, Gold) gives loyal shoppers something to aspire to. As customers progress through tiers, they unlock exclusive benefits, such as free shipping, early access to products, or premium support — motivating long-term engagement.

3. Personalized Rewards and Special Occasions

Effective loyalty programs go beyond generic offers. You can create personalized experiences by offering birthday gifts, milestone rewards, or tailored discounts based on past behavior. Personalization boosts emotional connection and makes customers feel truly valued

4. Easy Redemption and Mobile-Friendly UX

A loyalty program should be easy to use — both on desktop and mobile. Customers should be able to view points, redeem rewards, and track their status without friction. A seamless, mobile-friendly user experience is crucial to maximize participation and satisfaction.

5. Integration With Email and SMS Platforms

Connecting your loyalty program with tools like Klaviyo or Omnisend enables automated messages that remind customers of their points, encourage redemptions, or celebrate milestones. This integration ensures your loyalty efforts are part of a broader customer engagement strategy.

6. Scalability and Data Insights

A great loyalty program grows with your brand. Use analytics to monitor member activity, redemption rates, and ROI. The ability to analyze performance allows you to adjust rewards, optimize communication, and improve outcomes over time.

Loyalty programs offer far more flexibility than traditional discounts. With the right features in place, they help Shopify merchants build a stronger, more loyal customer base while staying ahead of the competition.

How to Set Up a Loyalty Program on Shopify (Step-by-Step)

Creating a loyalty program on your Shopify store doesn’t have to be complicated. With the right tools and a clear strategy, you can launch a program that keeps customers engaged and drives long-term revenue.

Here’s your Shopify loyalty setup guide, broken down into actionable steps:

1. Choose the Right Loyalty Program Type

Before installing any app, decide on the type of loyalty program you want to run. The most popular model is points-based, where customers earn points for purchases and other actions. Another option is a tiered program, which gives higher rewards to your most loyal customers over time. Some brands prefer perk-based programs, offering instant rewards like free shipping or exclusive gifts.

Your decision should reflect your brand goals, target audience, and what motivates your customers most. For example, a fashion brand might benefit from VIP-style tiers, while a DTC essentials brand might thrive with simple points-for-discounts systems.

2. Select a Loyalty App from the Shopify App Store

Once your structure is clear, head to the Shopify App Store and choose a loyalty app that aligns with your needs. Apps like Growave, Smile.io, LoyaltyLion, and Yotpo offer robust loyalty solutions tailored for Shopify stores of all sizes.

Look for apps that offer customizable rewards, integrations with your tech stack, multi-language support (if needed), and transparent pricing. Reading reviews and comparing features can help you find a tool that fits your brand vision and operational workflow.

3. Customize Your Rewards and Rules

After installation, it’s time to define the rules of your program. Decide how customers will earn points — such as spending a certain amount, referring friends, writing product reviews, or engaging on social media—and what those points will translate into.

For example, you might offer 1 point per $1 spent, with 100 points redeemable for a $10 discount. You can also add multipliers for special occasions like birthdays or holidays. Keep the earning and redemption process simple, transparent, and easy to understand — confusion kills engagement.

4. Integrate With Your Tech Stack

To maximize performance, your loyalty program should work seamlessly with your existing marketing tools. Most Shopify loyalty apps integrate with popular platforms like Klaviyo, Omnisend, and Gorgias, allowing you to automate reward notifications, post-purchase follow-ups, and loyalty campaigns.

Integration with Shopify POS is also useful for omnichannel brands, ensuring in-store customers receive the same loyalty benefits as online shoppers.

5. Promote Your Loyalty Program Across Channels

Even the best loyalty program won’t deliver results if customers don’t know it exists. Promote your program visibly across your store and marketing channels. Add a dedicated loyalty page, highlight benefits at checkout, and use pop-ups or banners to increase awareness.

You should also use email and SMS to introduce the program to subscribers, send reminders about available points, and announce limited-time bonuses or VIP tier upgrades.

6. Track Performance and Optimize

Once your program is live, start tracking performance through your app’s dashboard. Monitor key metrics like enrollment rate, redemption rate, customer lifetime value, and repeat purchase behavior.

Use this data to identify what’s working — and where you can improve. You may need to adjust your reward thresholds, introduce bonus point campaigns, or refine your email flows. Loyalty programs thrive when they’re treated as evolving systems, not one-time setups.

Examples of Successful Shopify Loyalty Programs

Looking for inspiration? These real-world Shopify loyalty program examples show how brands are successfully using rewards to build customer loyalty, drive repeat purchases, and boost long-term engagement. Each of these eCommerce loyalty case studies highlights different strategies that can be tailored to fit your store.

SkinnyMe Tea: Tiered Loyalty With Exclusive Rewards

SkinnyMe Tea, an Australian wellness brand, runs a tiered loyalty program that keeps customers engaged through progression. Customers earn points for purchases, referrals, and social actions, gradually unlocking access to exclusive rewards and perks as they move through loyalty tiers.

What makes this program effective is the gamification element — shoppers are encouraged to keep coming back to reach the next level. By linking rewards with milestones, SkinnyMe Tea increases both purchase frequency and emotional investment in the brand.

Sephora (Shopify Plus): Points and Experiential Perks

Sephora’s Beauty Insider program is a textbook example of how to build a large-scale loyalty ecosystem. Though it's a Shopify Plus store, its model is adaptable for smaller brands as well. Customers earn points for every dollar spent and can redeem them for samples, deluxe products, or exclusive experiences like beauty classes or early product access.

What sets Sephora apart is its focus on experiential rewards, not just discounts. This adds a layer of brand prestige and personalization, making the loyalty program feel aspirational and exclusive. It's a great reminder that offering value doesn’t always have to mean cutting into margins.

Blume: Community-Driven Loyalty

Blume, a clean beauty and self-care brand targeting Gen Z, uses its loyalty program to reinforce brand values and build community. Their rewards program encourages customers to earn points through both purchases and brand-friendly actions like engaging on social media or referring friends.

The strength of Blume’s program lies in its alignment with brand identity. The rewards, tone of communication, and user experience all feel authentic to their mission. As a result, their customers don’t just buy — they become advocates.

Top Loyalty Program Apps for Shopify Stores

Choosing the right loyalty app is essential to creating a seamless and effective customer experience. Whether you’re running a small shop or scaling a global brand, these are some of the best loyalty apps for Shopify — each offering unique features to fit different business needs.

Growave 

Growave is a powerful all-in-one app that combines a Shopify loyalty program, referral marketing, wishlists, reviews, and UGC — all in a single dashboard. Ideal for stores that want to consolidate multiple tools into one.

Pros:

• Combines loyalty, reviews, and social proof tools
  
  
• Affordable plans for growing stores
  
  
• Strong Shopify integration and multilingual support
  
  

Cons:

• Not as robust in advanced segmentation as some enterprise tools
  
  
• Slight learning curve for full suite of features
  
  

Pricing: Free plan available. Paid plans start at $49/month, with Growth and Plus plans for larger stores.

Best For: Small to mid-sized Shopify merchants looking for affordable, all-in-one Shopify rewards plugins with social engagement tools.

Smile.io

Smile.io is one of the most popular Shopify loyalty program apps, offering a sleek interface, easy setup, and support for points, referrals, and tier-based rewards.

Pros:

• Clean, user-friendly interface
  
  
• Fast setup with branded pop-ups
  
  
• Extensive free features
  
  

Cons:

• Limited customization on free plan
  
  
• More advanced features locked behind higher tiers
  
  

Pricing: Free plan available. Paid plans start at $49/month.

Best For: Brands focused on quick implementation and ease of use, especially in beauty, fashion, or lifestyle verticals.

LoyaltyLion

LoyaltyLion is a flexible and analytics-heavy loyalty platform tailored for scaling eCommerce brands. It offers deep personalization, A/B testing, and integration with Shopify Plus.

Pros:

• Advanced analytics and A/B testing
  
  
• Highly customizable reward structures
  
  
• Ideal for larger Shopify stores
  
  

Cons:

• Higher price point
  
  
• May be overwhelming for beginners
  
  

Pricing: Free plan available. Paid plans start at $159/month, with custom pricing for enterprise needs.

Best For: Mid-to-large Shopify businesses that need data-driven insights and advanced loyalty workflows.

Yotpo Loyalty & Referrals 

Yotpo’s loyalty solution is part of its full suite of eCommerce marketing tools, including reviews, SMS, and visual UGC. Perfect for brands already using Yotpo or seeking enterprise functionality.

Pros:

• Full integration with UGC, reviews, and SMS
  
  
• Great for brand storytelling and customer content
  
  
• Scalable for enterprise-level brands
  
  

Cons:

• Pricing not transparent; quote-based
  
  
• May be excessive for smaller businesses
  
  

Pricing: Custom pricing only. No free plan.

Best For: Enterprise Shopify brands focused on building social proof and user-generated content alongside a loyalty strategy.

Conclusion

In a competitive eCommerce landscape, loyalty programs are no longer optional—they're a proven strategy for increasing retention, boosting revenue, and turning one-time shoppers into lifelong brand advocates. For Shopify brands, implementing a loyalty program means building lasting relationships that reduce reliance on costly ad campaigns and improve customer lifetime value.

Whether you’re just starting out or scaling fast, the right Shopify loyalty program can help you stand out and succeed. From simple points systems to advanced tiered rewards, today’s apps make it easier than ever to launch a program that fits your goals and delights your customers.

Ready to build a loyal customer base? Try Growave for free and launch your loyalty program in minutes.