How to Create a Shopify Loyalty Program in 7 Simple Steps

Why do brands like Starbucks, Sephora, and Amazon Prime keep customers coming back again and again? It’s not just great products—it’s their customer loyalty programs.

The good news? You don’t need a massive budget to build your own. With the right strategy, a Shopify loyalty program can increase repeat purchases, boost the average order value, and turn one-time buyers into brand ambassadors—without the need for constant ad spending.

This guide will walk you through how to create a loyalty program that’s perfect for Shopify stores, whether you sell subscriptions, physical products, or digital goods.

Why Loyalty Programs Are a Game-Changer for Shopify Stores

Before we start building, here’s why a customer rewards program is worth your attention:

• Costs less than acquiring new customers – Retaining customers is 5–7x cheaper than acquiring new ones.
• Boosts order frequency – Members shop more often when they’re rewarded.
• Increases customer lifetime value – Loyal customers spend up to 67% more than new ones.
• Encourages word-of-mouth – Referral rewards drive organic growth.

Industry Growth: The market for loyalty programs is expanding quickly. By 2026, the global loyalty management industry—currently valued at about $8.6 billion USD—is expected to grow to over $18.2 billion USD.

Step 1: Set Your Goals and Know Your Audience

Ask yourself: What do I want my loyalty program to achieve?

• Increase repeat customer incentives?
• Boost subscription renewals?
• Drive referrals?

Example:
A Shopify-based pet food subscription brand might aim to reduce churn by rewarding subscribers who stay for 6+ months.

Knowing your target audience’s motivation is key:

• Budget-conscious shoppers → Cashback or discounts.
• Luxury buyers → Exclusive experiences or early access.

Step 2: Pick the Right Loyalty Program Model

Not all Loyalty program are the same—choose one that aligns with your store type.

Pro Tip: Many Shopify merchants combine points + referrals for maximum retention. This approach often outperforms single-structure programs in ecommerce loyalty programs.

Step 3: Choose the Right Shopify Loyalty App

Manually tracking rewards is a headache. The right app will automate earning, redemption, and promotion.

Easy Loyalty Rewards (by EasyComm Innovations) is a Shopify rewards app that offers:

• Points for purchases, referrals, and social engagement.
• Tier-based levels for VIP customers.
• Automated emails to keep members engaged.

Step 4: Plan Your Earning & Redemption Rules

Keep it simple so customers actually participate.

Earning:

• Sign-up bonus → 100 points.
• ₹1 spent → 1 point.
• Instagram follow → 50 points.
• Friend referral → 500 points.

Redeeming:

• 2000 points → ₹200 off.
• 3000 points → Free product.
• VIP tier → Exclusive sale invites.

Quick Win: Offer double points in the first week of launch to encourage sign-ups. This tactic works especially well for loyalty programs for subscription businesses.

Step 5: Brand and Promote Your Program

A loyalty program is only valuable if customers know about it.

• Name it creatively – “Glow Circle,” “Bean Club,” “VIP Insider.”
• Promote it everywhere – Homepage banners, email newsletters, product pages.
• Incorporate it into post-purchase emails so customers join right after buying.

Mistake to Avoid: Burying your loyalty program in the footer—make it highly visible to capture searchers looking for loyalty program ideas.

Step 6: Measure & Optimize for Better ROI

Track these KPIs:

• Sign-up rate – Are enough visitors joining?
• Redemption rate – Are rewards being claimed?
• Average order value – Is it higher for loyalty members?
• Churn rate – Are subscriptions lasting longer?

If engagement is low:

• Lower point thresholds.
• Offer more exciting rewards.
• Send reminder emails about unused points.

This process helps increase customer lifetime value Shopify results.

Step 7: Learn From Real Shopify Examples

• Blume – Uses a points system + referrals to target Gen Z skincare lovers.
• Death Wish Coffee – Rewards social shares & purchases, keeping their coffee community active.
• Kylie Cosmetics – Tier-based perks that gamify spending.

Take inspiration, but tailor your program to your brand’s personality and margins.

Final Call-to-Action

Building a loyalty program is one of the most cost-effective ways to grow your Shopify store. With clear goals, the right reward structure, and a little promotion, you can turn casual shoppers into lifelong customers.

Start building your Shopify loyalty program with Easy Loyalty Rewards today—and keep customers coming back for more.

FAQs – Loyalty Program Essentials

Q1: How soon should customers be able to redeem points?
As quickly as possible—delayed rewards reduce engagement.

Q2: Can I run a loyalty program and subscription model together?
Yes. Many Shopify merchants offer extra points for subscription renewals or upgrades.

Q3: What rewards work best for high-margin products?
Exclusive experiences, limited-edition items, and free shipping often work better than big discounts.

Q4: How do I prevent loyalty fraud?
Use unique referral codes, verify accounts, and set clear anti-abuse rules.

Q5: Do loyalty programs work for small Shopify stores?
Absolutely—start simple, then scale as you see positive ROI.