---
title: "How to Create A Loyalty Program on Shopify in 2026"
slug: "how-to-create-a-loyalty-program-on-shopify"
url: "https://joy.so/blog/how-to-create-a-loyalty-program-on-shopify/"
kind: "post"
author: "Thomas Nguyen"
author_url: "https://joy.so/author/thomas/"
published_at: "2025-01-11T00:00:00.000+00:00"
updated_at: "2026-08-19T10:36:33.000+00:00"
description: "A simple, well-planned loyalty program can turn one-time buyers into loyal fans. This step-by-step guide is detailed, easy to follow, and based on real experience - perfect for any Shopify store owner looking to boost retention."
category: "How-to Guide"
tags: ["How-to Guide", "Loyalty Program", "Shopify tools"]
reading_time: 9
feature_image: "https://images.pexels.com/photos/17485353/pexels-photo-17485353.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940"
---

# How to Create A Loyalty Program on Shopify in 2026

Getting new customers is tough. And expensive. So why not focus on keeping the ones you already have?

I’ve run a few Shopify stores, and one thing I’ve learned is this: a loyalty program can make a huge difference. It’s not just about points or discounts. It’s about making people feel like they matter.

When I set up my first loyalty program, I had no idea where to start. There were too many apps, too many features. I got stuck trying to figure out what actually works.

Here’s the good news—setting up a simple, smart loyalty program doesn’t have to be hard. You just need a clear plan.

Here’s what I’ve learned:

- Start with a goal — do you want more repeat orders, reviews, or referrals?
- Pick rewards that make sense — points, discounts, free stuff
- Make it easy — don’t overcomplicate things

In this guide, I’ll walk you through each step and share how I did it. Nothing fancy. Just what worked for me—so maybe it’ll work for you too.

Ready? Let’s dive in.

**Key Takeaways**

- Setting up a Shopify loyalty program doesn't have to be complicated. A clear plan and the right app get you live quickly.
- Start with a goal: more repeat orders, more reviews, or more referrals. Your goal determines which mechanics to use.
- Points, discounts, and free products are the most effective Shopify rewards. Keep redemption simple and achievable.
- Step-by-step walkthrough covers app selection, point structure setup, reward configuration, and promotion strategies.
- Don't overcomplicate it. If customers can't understand your program in one sentence, simplify before launching.

## How to Create A Loyalty Program on Shopify

Here's the full, step-by-step process, from picking a program type to measuring what actually works.

### Step 1: Choose a Loyalty Program Type

![Six loyalty program types illustrated: points-based, tiered, paid, coalition, referral and punch card](https://cdn-web.joy.so/cdn/image/2025/04/image-a0103d.png)

The first step in creating a loyalty program on Shopify is deciding which type of program best suits your store and customers. There is no one-size-fits-all solution, as different programs suit different business models.

If you're unsure where to start, I highly recommend researching different [Types of Loyalty Programs](https://joy.so/blog/types-of-loyalty-program/) before making a decision. A well-matched program can significantly boost customer retention, while the wrong one can feel like an afterthought. Once you've chosen the right fit, it's time to define your goals!

### Step 2: Define Your Goals

Now that you’ve chosen the type of loyalty program that best suits your store, it’s time to **define your goals**. Setting clear objectives will ensure that your program stays focused and delivers results.

- **Identify Your Goals:** What do you want to achieve? I wanted to increase repeat purchases, but your focus might be on referrals or growing customer lifetime value.
- **Set Measurable KPIs:** Instead of vague targets, establish specific ones—such as a 20% increase in customer return rate or a 10% increase in average order value (AOV).
- **Understand Your Customers:** This is crucial. I spent time analyzing my Shopify store’s customer data to see what motivated purchases. For example, I noticed that discounts worked well for first-time buyers, but VIP perks resonated more with repeat customers.

From my experience, defining your goals upfront makes the rest of the process much smoother. Let’s move to the next step!

### Step 3: Integrate a Shopify Loyalty App

The next step is to install your loyalty app. I will be using Joy Loyalty as an example.

![](https://cdn-web.joy.so/cdn/image/2026/08/Screenshot-2026-08-18-at-09.19.45-0a42c7.png)

_Joy Loyalty Program & Rewards_

**Here's how to do it:**

1. [**Install Joy Loyalty**](https://apps.shopify.com/joyio?utm_source=joy&utm_medium=blog_inbody&utm_campaign=how_to_create_a_loyalty_program_on_shopify) into your Shopify store
2. Select your plan, and provide your billing information
3. Start your free trial (14 days on Essential and Advanced, 30 days on Ultimate) and then set up with Joy Loyalty

Joy Loyalty’s guided setup gets your program live quickly, and it scales with dedicated support as your store grows.

Once your app is set up, the next step is configuring the finer details of your loyalty program to maximize its impact.

### Step 4: Set Up Your Loyalty Program

Now that you’ve integrated the Loyalty app, it’s time for the most exciting part - setting up your loyalty program. This is where you’ll define how customers earn points, what rewards they can redeem, and the rules that make your program truly unique.

In this guide, I’ll focus on a **points-based system**, one of the most versatile and practical models for Shopify stores.

#### 1. Decide How Customers Earn Points

Think about the actions you want to reward based on your goals from Step 2. While boosting sales is key, don’t stop there! Reward customers for other valuable actions, such as:

- Making purchases
- Creating an account
- Leaving reviews
- Referring friends
- Following on social media
- Celebrating birthdays

These options keep customers engaged across multiple touchpoints. With Joy, you can easily configure earning rules to match these actions.

#### 2. Consider What Rewards Will You Offer

Choosing the right rewards was one of the most critical decisions in my program. Customers won’t engage if the incentives don’t excite them. I experimented with different options and found that variety worked best. Here are a few ideas I found effective:

- **Discounts:** A percentage or fixed amount off future purchases.
- **Free products:** Gifts or samples**.**
- **Free shipping.**
- **Exclusive perks:** Early access to products, sales, or premium experiences like workshops or events.

#### 3. Decide on Points and Rewards

Now, it’s time to figure out the numbers. Points are the foundation of any loyalty program, so it’s crucial to set clear rules for earning and redeeming them. You’ll want to offer rewards that feel valuable to customers while still protecting your profit margins.

![Points and Rewards](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfRqXr6riuz-QtP4YEFd_ETd64fBh7sA1lXadxz4hGl0EhjvejiZJ6JBRStwsQmMb5wunQCLfmCc-b9Lb98aEAFlo9nhqlF7trFpTDt8VpklDy7cs9vpCA6B3EvL0EpTlsbq7s4yg?key=b4dCrOCGqmEW11KiPnVyBduB)

A good starting point is **3-5% back in points for every dollar spent** or up to **10% for higher-margin products**.

The following point allocations are guidelines to get you started. You can adjust these numbers based on your store’s goals, audience, and profit margins:

- **Sign-ups**: Reward customers with 50% of the points needed for the first reward.

*Example: If 500 points = $5, give 250 points for signing up.*

- **Reviews**: Offer 30% of the points needed for the first reward.

*Example: If 500 points = $5, give 150 points for leaving a review.*

- **Birthdays**: Provide the full amount of points needed for the first reward once a year.

*Example: If 500 points = $5, give 500 points on their birthday.*

- **Referrals**: For the first reward, give both the referrer and the new customer 25% of the required points.

*Example: If 500 points = $5, give 125 points to both the referrer and the referred customer.*

- **Social Media Follows**: Offer small rewards for social media actions, such as 50 points per follow, ensuring these, combined with sign-up points, don’t exceed the first reward total.

*Example: If 500 points = $5, give 50 points per follow, but ensure total social media and sign-up points remain below 500.*

#### 4. Setting Up Your Loyalty Program

To clarify the setup process, let’s explore **Shopify loyalty program examples** by setting one up using the Joy app.

- To choose how customers earn points, click **App** > **Joy** > **Reward Programs** > **Earning Programs**.

![Create A Loyalty Program on Shopify with JOY](https://cdn-web.joy.so/cdn/image/2025/01/AD_4nXePMD-I_CxwjcwTA0Vv5FZ4C2cz.webp)

- Here, you can select 30+ actions to reward your customers.

![](https://cdn-web.joy.so/cdn/image/2026/08/Screenshot-2026-08-18-at-09.22.56-ef7066.png)

- Configure the points for each action, channels apply, and other settings. Remember to click **Turn on** to apply it to your store.
- Next, go to the **Redeeming Program** to set up your rewards. You can choose from discounts, free gifts, or free shipping and set the number of points customers need to redeem them. Remember to click **Turn on** to apply it to your store.

![](https://cdn-web.joy.so/cdn/image/2026/08/Screenshot-2026-08-18-at-09.23.43-cddc3c.png)

### Step 4: Promoting Your Loyalty Program

Once your loyalty program is fully set up in your loyalty app, it’s time to spread the word and get customers excited about joining.

To maximize participation, actively promote your loyalty program across multiple channels:

- **Create a Loyalty Landing Page** – One of the best decisions I made was dedicating a separate page to my loyalty program. Using the Shopify theme editor, I crafted a visually appealing and informative page that included:
  - **Hero Section**: Use a striking banner to grab attention. Highlight the value of joining your program.
  - **Clear Structure**: Clearly explain how the program works with easy-to-read sections and visuals.
  - **Rewards Showcase**: Use the "Ways to Earn" and "Ways to Redeem" sections to motivate users.
  - **Consistency**: Match the page design with your brand’s theme for a seamless experience.
  - **FAQs**: Address common questions to minimize confusion and encourage participation.
  - **Engaging Media**: Include videos, testimonials, or success stories to build trust.
  - **SEO Optimization**: Use keywords related to loyalty programs to attract organic traffic.
- **Create Additional Promotion Methods**:
- **Banners & Pop-ups** – Add eye-catching banners and pop-ups to announce your program.
- **Email Marketing** – Send [loyalty program emails](https://joy.so/blog/loyalty-program-email-examples/) to introduce the program and remind customers about rewards.
- **Social Media** – Share engaging visuals and promotional posts about your program.
- **In-Store Promotions** – If applicable, promote the program using in-store signage and QR codes.

Joy lets you create a dedicated landing page that perfectly complements your theme with Shopify’s Theme Editor. Here are the simple steps to create a loyalty landing page using Joy.

- Open the "**On-site content**" section, ​then choose one of the seven page tabs you want to set up.

![](https://cdn-web.joy.so/cdn/image/2026/08/Screenshot-2026-08-18-at-09.26.22-6f1341.png)

- Here, in the **Template** section > Select **Add Section** > **App** > **Select the blocks** you want to add, such as:
  - Hero Banner Block
  - How It Works Block
  - Ways to Earn Block
  - Ways to Redeem Block, etc…
  - FAQs block (requires setting up your FAQs list inside the Joy app first)
- Customize banners, buttons, colors, and layouts.

![Create a dedicated landing page with Joy](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdaxRZ8Rf1PGW-Y1kBki-aD0qEXKQ6ebz1-ev976eqmBHrU4BDIjkzozzyoOWOJjYHxwL54Qlv_x435MsqIywQr7Jm0gQXUkJIX9WUhdkphyyLbcx5rE4kyIZdUubwgnn7oc92AEQ?key=b4dCrOCGqmEW11KiPnVyBduB)

- **Customize with your branding**:
  - Change your color and font to match your branding
  - Edit the button and layout of your content just like you do with your theme
  - Customize your icons
- Click **Save** and **Publish**

### Step 6: Measuring and Optimizing Your Loyalty Program

Creating a loyalty program is only the beginning. To ensure its success, you need to track its performance and continuously improve it.

Here are the key performance indicators (KPIs) to focus on:

- **Customer Retention Rate:** This indicates how well your program retains customers. Look for an increase in repeat purchases after launching your program.
- **Redemption Rate:** Measure the percentage of earned points that customers redeem. A low redemption rate might mean your rewards aren’t attractive or attainable.
- **Referral Rate:** If you have a referral program, track how many new customers join as a result. A strong referral rate shows your program is driving growth.
- **Average Order Value (AOV):** Analyze whether customers in your loyalty program are spending more than those who aren’t.
- **Customer Lifetime Value (CLV):** Evaluate whether your loyalty program members contribute more to your revenue over time compared to non-members.

Joy’s built-in analytics dashboard provides real-time data on these KPIs. You can view points earned, rewards redeemed, and overall customer engagement to assess your program’s health.

![](https://cdn-web.joy.so/cdn/image/2026/08/Screenshot-2026-08-18-at-09.27.29-3b68f6.png)

Besides Joy, most loyalty apps offer a clear, intuitive analytics dashboard with detailed campaign insights. Here’s the analytics overview from Smile.io.

![Measuring and Optimizing Loyalty Program with Joy](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdmpAUkSI5kPewDfyruZvNO6XWj2tO8N18Fe2LJH8Yj2_9kT64i-2rxiDL3DXFin9THt91A1m_7jaOe_od0ayiWFOVm3bKvz7ipfiqGzy72zYRYXPqTCnFx2mBxZ98-v7z0nZt1?key=b4dCrOCGqmEW11KiPnVyBduB)

Once you have the data, use it to make improvements:

- Enhance rewards
- Adjust point-earning rules
- Experiment with different aspects of your program

## 5 Key Elements Of A Successful Loyalty Program

![Loyalty Program on Shopify](https://lh7-rt.googleusercontent.com/docsz/AD_4nXcEQtJYJI9MdVD1v-h_MDIfwGHpqFvPuMszpQERkIcy4VmwMWejTZ9cXtbOsg17iGMG0bTNtCJhsxjby6QbFYDc4X7Ifp5h79w628Plf0Eob3rB9mpkZohPEeHcorpLzg-K0Z_zCw?key=b4dCrOCGqmEW11KiPnVyBduB)

Through trial and error, I discovered what really makes a loyalty program work.

- **Accessible and Easy to Join:** Your customers should immediately understand how the program works. If it feels too complicated, customers might lose interest.
- **Rewards That Customers Value:** Provide rewards that align with customer preferences, such as discounts, exclusive products, or unique experiences. Consider personalized rewards to make customers feel special and valued.
- **Clear Communication:** Explain your program clearly and keep your customers informed about their points and rewards. Use email, in-app messages, or even personalized notes to stay in touch.
- **Technology:** Use a loyalty program app or platform that integrates with your Shopify store to automate rewards, track customer activity, and personalize communication.
- **Data-Driven Optimization:** Track your program's performance, gather customer feedback, and use the data to make improvements and keep it fresh and engaging.

## Why Use Joy Loyalty To Create A Loyalty Program on Shopify

![](https://cdn-web.joy.so/cdn/image/2026/08/Screenshot-2026-08-18-at-09.29.13-5fedb9.png)

Joy Loyalty has helped over 10,000 ecommerce stores, from growing brands to large enterprises in multiple industries, create and manage successful loyalty programs.

Setup is straightforward and works smoothly with your Shopify store - and it has a deep feature set to grow into.

You can create a classic points-based program, add a referral program, or even implement tiered and VIP programs to reward your most loyal customers. Plus, you can customize everything to match your brand, from your rewards page to your email and notifications.

On top of all that, Joy scales with you — a free Starter plan to get going, and paid plans that unlock VIP tiers, a rule engine, and POS as your order volume grows. If you need help, a fantastic 24/7 customer support team will be ready every step of the way.

**Discover:** [**7 Free Loyalty Programs for Small Businesses**](https://joy.so/blog/free-loyalty-programs-for-small-businesses/)