How to Set Up a Shopify Loyalty Rewards Program in 7 Steps
To set up a loyalty program on Shopify, work through seven steps: choose the reward, write the earn and redeem rules on one page, check your customer accounts and discount settings, install a loyalty app, configure it to match your rules, test it with a real order, and launch it where customers will see it. Install the app only in step four, after the rules are written.
Shopify facts come from the Help Center pages on store credit, customer accounts, discount combinations and app installation, read on October 23, 2026. If you are still deciding whether you need a program at all, start with our overview of the Shopify loyalty program options.
Step 1: Choose the reward
Decide what a customer gets, in one sentence: “$5 off for every 100 points”, “5% back as store credit”, “free shipping after your third order”. Two things decide the form:
- A discount code works with any setup and almost every loyalty app.
- Store credit feels like money and is spent only in your store, but it has Shopify rules (step 3).
Step 2: Write the rules sheet before you install anything
Every loyalty app asks the same questions during setup. Answer them on paper first.
| Rule | Example | Why it matters |
|---|---|---|
| Earn rate | 1 point per $1 spent, excluding shipping and tax | Decides the cost of the program |
| Extra ways to earn | 100 points for creating an account, 50 for a review | Only reward actions you want more of |
| Redeem value | 100 points = $5 off | With the earn rate, sets the reward as a share of sales (here 5%) |
| Minimum to redeem | 100 points | Stops tiny rewards from eating margin |
| Expiry | Points expire 12 months after they were earned | Keeps old promises off your books |
| Excluded products | Gift cards, sale items, low-margin bundles | Protects margin |
| Refunds and returns | Points from a refunded order are removed | Stops “buy, earn, return” |
| Combining | Can a reward be used with other discount codes? | Prevents stacked discounts you did not plan |
| Tiers (optional) | Silver from $300 a year, Gold from $800 | Only if you can afford better perks per tier |
Check the redeem value against your margin. On a product with a 40% margin, a 5% reward takes an eighth of the profit on that order. If that is too much, lower the earn rate or exclude the product.
Step 3: Check your Shopify settings first
- Customer accounts. Members need to sign in to see their points or credit. Shopify’s customer accounts use passwordless sign-in with a one-time 6-digit code, can offer Sign in with Shop and Google or Facebook sign-in, and keep customers signed in for up to 365 days. Check that the account link is in your store’s header or footer.
- Store credit, if it is your reward. It is on by default; check the Store credit toggle in the Customer accounts section of Settings > Customer accounts. It only works with the new customer accounts, not legacy accounts. Customers apply their whole balance at once, not part of it, and it is accepted on the online store, Point of Sale and Shop only. One customer account can hold less than $15,000 USD of credit. Stores created on or after May 12, 2025, pay third-party transaction fees on the part of an order paid with store credit.
- Discount combinations. If rewards are discount codes, decide which other discounts they may combine with. Shopify groups discounts into product, order and shipping classes. Every store can combine order or product discounts with free shipping, and product discounts on separate items; order discounts combined with other order or product discounts are only available to eligible merchants. When codes cannot combine, the customer sees “Discount couldn’t be used with your existing discounts”.
- A terms page. Publish the rules sheet in customer-friendly words as a page, and link it from the footer and the rewards widget.
Step 4: Install and configure your loyalty app
Choose the app by your reward form and its pricing unit; Smile, for example, prices its plans by orders per month. Our Shopify loyalty apps comparison covers the options. Then:
- Install the app from the Shopify App Store. On the Install app screen, check what it can access: a loyalty app needs customers, orders and discounts, but has no reason to edit your products.
- Turn on the app’s embed in Online Store > Edit theme > App embeds, so the rewards launcher or widget appears on the storefront, and click Save.
- Enter your earn rules, redeem rules, minimum, expiry and exclusions from the rules sheet.
- Set how rewards are paid out (discount code or store credit) and which discounts they may combine with.
- Write the texts the app shows: the launcher label, the “you earned points” email, the reminder before points expire.
- Match the widget’s colors and position to your theme, and check it does not cover Add to cart on a phone.
- Decide whether past customers get points for past orders. Some apps can import history; if yours does, check which orders it counts.
Step 5: Test it with a real order
Before announcing anything, run the whole loop on your own customer account:
- Create an account and check the signup points arrive.
- Place an order and check the points and the email.
- Redeem a reward at checkout and check it combines (or not) with another code the way your rules say.
- Refund the order and check the points are removed.
- If you sell in person, redeem a reward at Shopify POS, if your app supports POS.
Step 6: Launch where customers will see it
- The customer account page and the order confirmation email.
- The rewards launcher on the storefront, and a line on product pages: “Earn 45 points with this purchase”.
- An email to past customers who accepted email marketing.
- A sign at the counter, if you have a shop.
Step 7: Measure the first 60 days
Write down your repeat purchase rate and the average time between first and second orders before launch. After 60 days, compare them, and check how many members redeemed at least once. Our guide to loyalty program metrics explains each number and where Shopify reports it. More customer topics are in the running a store hub.
Frequently asked questions
How long does it take to set up a Shopify loyalty program? Installing an app is quick; writing the rules, checking the Shopify settings and testing a full order, redemption and refund takes longer. Leave time for the full test before you announce the program.
Can I run a loyalty program on Shopify without an app? A simple one, yes. You can issue store credit to customers by hand and use customer segments to find your best customers. Points balances, automatic earning and a rewards widget need a loyalty app.
Do loyalty points work in Shopify POS? Store credit can be redeemed on Shopify POS when it is also active on your online store, and staff need the POS Customers permissions. For points, check your loyalty app’s listing for POS support.