Types of loyalty rewards you can create

Creating rewards is easy. There's no need to create discount codes – these are automatically generated when a customer spends their points to redeem the reward. Discount codes are unique and will only work once. 

In this article:

It’s always nice to get a discount, and offering your customers the chance to earn store credit allows them to choose what they spend it on at your store.

To create: 

• Select type of reward: fixed discount amount
• Title: give your reward a title that represents the reward, i.e. $ XYZ off
• Points required to redeem: set how many points a customer must spend to redeem your reward
• Discount amount: type the amount that is reflected in the title

Giving your customers a percentage discount allows them to choose what they use it on at your store. And it encourages them to spend more to make the most of the % discount.  

To create: 

Encourage your customers to make another purchase to benefit from free shipping. 

To create: 

Giving your customers a free product is a great way to thank them for their loyalty. It delights them by creating the same feelings as receiving a gift. It’s also a great way to move idle stock.
📝  Note: This reward type is recommended to be online only. If you want to have it available in-store as well, it requires strict staff training to ensure the item is added to the sale as normal.

To create: 

Detailed instructions on creating free product rewards

📝 Note: When the stock of this product runs out, you'll need to remember to update or pause this reward until new stock arrives.

A % discount off a specific product is a good way to move idle stock. This discount will apply to the entire product quantity.

📝  Note: This reward type is recommended to be online only. If you want to have it available in-store as well, it requires strict staff training to split the sale into two sales if the member is making additional purchases. The reward should only be redeemed on a sale that only contains the relevant products.

To create: 

A $ discount off a specific product is a good way to move idle stock. This discount will apply across the entire product quantity.

📝  Note: This reward type is recommended to be online only.

To create: 

📝  Note: When the stock of this product runs out, you'll need to remember to update or pause this reward until you receive more stock.

A % discount is a great way to introduce your customers to a specific product line, inspiring them to buy more in the future. This discount will apply to all products within the collection.

📝  Note: This reward type is recommended to be online only. If you want to have it available in-store as well, it requires strict staff training to split the sale into two sales if the member is making additional purchases. The reward should only be redeemed on a sale that only contains the relevant products

To create: 

> How to create a % off product collection reward in Shopify
> How to create a % off product collection reward in BigCommerce

A $ discount is a great way to introduce your customers to a specific product line, inspiring them to buy more in the future. This discount will apply to all products within the collection.

📝  Note: this reward type is recommended to be online only. 

To create: 

> How to create a $ off product collection reward in Shopify
> How to create a $ off product collection reward in BigCommerce

A % discount that can only be used on orders over a specified value is a great way to encourage customers to spend more to be able to get the discount.
📝   Note: This reward type is recommended to be online only. If you want to have it available in-store as well, it requires strict staff training to ensure the sale is over the spend threshold.

To create: 

Detailed instructions on creating % off spend threshold rewards

A $ discount that can only be used on orders over a specified value is a great way to encourage customers to spend more to be able to get the discount.

📝  Note: This reward type is recommended to be online only. If you want to have it available in-store as well, it requires strict staff training to ensure the sale is over the spend threshold.

To create: 

Detailed instructions on creating $ off spend threshold rewards

How do members redeem rewards?

• How members redeem rewards online with Shopify eCommerce
• How members redeem rewards online with BigCommerce
• How staff redeem rewards in-store with Shopify POS

How does the reward ladder work? Your reward ladder entices your customers to join your loyalty program and encourages them to shop and earn points to spend on your rewards. When a customer has earned enough points, they can spend them to redeem a reward or save their points up towards a reward at a higher points cost. You can read more about how the reward ladder works here.

Do I need to create discount codes?

Creating rewards is easy. There's no need to create discount codes – these are automatically generated when a customer spends their points to claim the reward. Discount codes are unique and only work once. 

Add variety to your reward titles to create interest in redeeming your rewards. For example:

When choosing your points to redeem amount, it is recommended that you use the '10% of dollar spend' rule, e.g. your reward discount amount is 10% of the spend required to earn this number of points.  

For example if $1 spend = 1 point:

Or if $1 spend = 2 points:

When creating loyalty rewards, it’s important to be sure you also include the relevant terms and conditions. Whether it's to encourage fair use or protect your store, outlining exactly how and when your rewards can be redeemed to ensure that your rewards are used as you intend them to be used.

Common terms and conditions:

How to add terms to your loyalty rewards

4. Create a rewards ladder

Create three or more rewards to encourage customers to earn more and more points to spend on your rewards. A rewards ladder gives your customers more flexibility to choose which rewards they would like to earn points towards and redeem. Loyalty programs with 3 - 5 rewards show better results than those with 1 reward, e.g. their customers are more engaged with their loyalty programs, their reward redemption statistics are higher, and their average spend is greater. Read more about how your reward ladder works.

💡 Top Tip: if you’re stuck for ideas, don’t be afraid to try a few different ideas, see what works the best, and then add some different ones to replace the rewards that aren't performing as well. 

You can also check out our Success Stories for some more great ideas!