How to Set Up a Loyalty Rewards Program on a Shopify Store?

As a Shopify merchant, you know how much effort goes into attracting new customers. But the real game-changer? Getting them to come back again and again.

That’s where a powerful Shopify loyalty program comes in. By rewarding repeat purchases, referrals, and engagement, you can boost retention, grow your community, and increase lifetime value, all from within your Shopify store.

In this guide, I will walk you through setting up your Shopify store with a results-driven loyalty rewards program, selecting the best Shopify rewards app, and building a customer experience that keeps shoppers coming back.

Let’s turn loyalty into your competitive edge.

What is a Shopify Loyalty Rewards Program?

A loyalty rewards program incentivizes customers to engage with your Shopify store by offering points, perks, or discounts for actions like purchases, referrals, and reviews. When implemented properly, a Shopify rewards program can turn occasional buyers into brand advocates.

Benefits include:

• Increased repeat purchase rate
• Improved customer retention
• Higher average order value
• Better customer experience and satisfaction

Whether you are using a loyalty punch card system or a full-fledged tiered program, loyalty solutions are important for long-term growth.

Step 1: Select the Loyalty Programs Type

Here are five proven types of eCommerce loyalty program formats to consider for your Shopify loyalty program:

1. Points-Based Programs

This is the most common structure. Customers earn points for every dollar spent, signing up, leaving reviews, or taking other desired actions. These points can then be redeemed for discounts, free shipping, or exclusive items.

The Shopify points system is easy to set up with the best loyalty apps for Shopify and offers flexibility across industries.

2. Tiered Rewards Systems.

With a tiered loyalty program on Shopify set up, customers move up through reward levels (e.g., Bronze, Silver, Gold) based on their purchase history or engagement.

Each tier unlocks better perks, encouraging ongoing interaction and increasing customer lifetime value.

3. Cashback & Store Credit

This Shopify customer rewards approach gives customers a percentage of their spend back as store credit. It’s simple, clear, and keeps shoppers returning to use their earned value, which is ideal for Shopify stores selling frequently purchased items.

4. Referral-Based Programs

A Shopify referral program rewards loyal customers for spreading the word. Whether it’s through sharing referral links or inviting friends, this format not only retains current customers but also attracts new ones organically.

5. Subscription & VIP Clubs

Think of this as the premium version of loyalty. The Shopify VIP loyalty program gives exclusive perks, like early access, free shipping, or birthday rewards, to subscribers or top-tier shoppers.

It builds strong emotional loyalty and a sense of belonging.

Comparison Table: Shopify Loyalty Program Types

Step 2: Choose a Loyalty App from the Shopify App Store

Shopify offers several powerful loyalty apps to help you set up a rewards program quickly and effectively.

Top picks include:

• AiTrillion: An all-in-one app with points, referrals, reviews, VIP tiers, and email/SMS marketing. Ideal for stores seeking an integrated loyalty + marketing solution.
• Smile.io: Easy to use and perfect for beginners. Includes points-based rewards, referrals, and tiered perks.
• Yotpo Loyalty: Great for scaling brands, offering loyalty tools with advanced analytics and automation.

If you are not sure which loyalty app fits your business best, you can explore our guide to the best Shopify loyalty apps.

At ControlF5, we recently built a Shopify store and integrated the AiTrillion loyalty program app for our USA-based eCommerce brand client, ObiOutFilters.

The result?

A smooth rewards experience with points, referrals, email automation, and VIP tiers, all managed from a single dashboard.

Step 3: Install the App

Installing a loyalty app on Shopify is quick and easy. Here’s how to do it using AiTrillion:

• Log in to your Shopify Admin Dashboard.
• In the left sidebar, click on “Apps” and then select “Shopify App Store.”
• Use the search bar to type “AiTrillion” and select the official app from the results.
• Click “Add app” and then “Install app” on the confirmation screen.

Step 4: Set Up Program Rules & Rewards

Once your app is installed, define how your loyalty program will work.

Customize your rewards and rules by:

• Earning rules: Points per purchase, reviews, referrals, or social media shares
• Redemption methods: Discounts, free shipping, exclusive gifts
• Point valuation: Example: 1 point = $0.01 (balance rewards with profit margins)
• Tier structure: Define tier names, qualification thresholds, and perks
• Customization: Match program branding, emails, and language with your Shopify store’s look and feel

1. Set Up Earn Points Rules

Go to:

Loyalty Rewards > Set Up Program > Earn Points

Here, you can set rules for how customers earn points for completing different actions on your Shopify store.

You can also add rules for:

• Birthday bonus points
• Newsletter signups
• Social shares and engagement

Tip: Keep the point structure simple and consistent. Display earning opportunities on your Shopify store to drive more engagement.

2. Set Up Redemption Rules (Redeem Points)

Navigate to:

Loyalty Rewards > Set Up Program > Redeem Points

Here you will define how customers can spend the points they earn.

Popular Reward Types:

• 100 points = ₹100 Off
• 300 points = Free Shipping
• 500 points = Free Product
• Store credit or gift codes
• Bonus items during special promotions

Make sure to set minimum redemption thresholds to protect margins and motivate customers to accumulate points.

3. Add VIP Tier Levels

Navigate to:

Loyalty Rewards > Set Up Program > VIP Program

Here’s an example of a tier structure you can use:

Bonus Tip: VIP tiers not only drive larger purchases but also build emotional loyalty. Use tiers to surprise top customers with unexpected perks.

If you want to learn about tiered memberships for your Shopify store? Check out the guide: What are Tiered Memberships?

Step 5: Display Loyalty Program on Your Store

Once your rewards system is configured, make sure it’s visible and easy for customers to access.

In AiTrillion, go to:

Loyalty Rewards > Display On Store

Here, you can customize the widget’s look and feel to match your brand, colors, fonts, icons, and messaging.

Best Places to Promote Your Loyalty Program:

• Header Banner: Example: “Join our Rewards Club”
• Product Pages: Highlight how many points customers can earn
• Checkout Popups: Remind users of point redemption opportunities
• Account Dashboard: Add a loyalty tab or section for easy access

Tip: Keep your loyalty visibility consistent across your Shopify store so customers always know how and where to earn rewards.

Step 6: Import and Manage Your Loyalty Members

To build a strong loyalty program, it’s essential to bring your existing customers into the system and manage them based on their behavior and engagement.

If you are moving from another loyalty platform, there’s no need to start from scratch. Most apps like AiTrillion make it easy to migrate customer data, including their point history.

How to Import Members in AiTrillion:

• • Go to Loyalty Rewards > Members > Import Members
  • Download the sample CSV file
  • Fill in key details such as:
    1. Lifetime Points
    2. Redeemed Points
    3. Current Points
  • Upload the file to sync everything into your new loyalty system

This ensures a smooth transition and keeps your loyal customers’ rewards intact.

Tips for Managing Loyalty Members:

• Segment by behavior for personalized offers
• Reward top spenders with exclusives
• Motivate mid-tier users to level up with milestone rewards
• Analyze regularly to keep engagement high

Step 7: Track and Optimize Your Loyalty Program Performance

Don’t set it and forget it; monitor your loyalty program regularly to keep it effective and engaging.

Track Key Metrics:

• Points Earned vs. Redeemed: Measures engagement
• Redemption Rate: Indicates reward appeal
• Repeat Purchase Rate: Shows retention impact
• Tier Movement: Tracks customer progression
• Referral Growth: Reflects word-of-mouth success

Use tools like AiTrillion’s dashboard to gain insights and adjust point values, rewards, or tier perks as needed.

Tip: Review performance monthly and optimize based on what your customers respond to.

Bonus Step: Integrate With Your Tech Stack

Create a smooth experience by connecting your loyalty program to other tools:

• Email/SMS platforms: Use Klaviyo or Omnisend to send automated reward alerts or campaigns
• Shopify POS: Enable loyalty in physical stores with POS Pro
• CRM tools: Sync loyalty data to personalize customer journeys across platforms

Proven Success with Shopify Loyalty Setups

At ControlF5, we have helped brands implement loyalty features that truly make a difference. Here are two Shopify success stories:

1. The Alpine Apothecary: WooCommerce to Shopify Migration

We migrated their store to Shopify and set up a loyalty program that encouraged repeat purchases and improved customer experience.

2. Aayraa Jewels: Shopify Store from Scratch

From branding to launch, we built their Shopify store with a custom rewards system that helped boost customer retention.

How ControlF5 Helps You Set Up a Shopify Loyalty Program

At ControlF5, we are a trusted Shopify agency that helps Shopify merchants build powerful, conversion-driven Shopify loyalty programs. From choosing the right Shopify rewards app to designing a custom-branded loyalty experience, we offer full setup and optimization support.

Whether you are a small Shopify store or on Shopify Plus, we will help you launch a customer loyalty program that Shopify shoppers love.

Book a Free Consultation with our team today.