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:
- 10 reward types and how to create them
✨ $ off storewide
✨ % off storewide
✨ Free shipping (Online only)
✨ Free product (Online only)
✨ % off specific product
✨ $ off specific product
✨ % off product collection/category
✨ $ off product collection/category
✨ % off spend threshold orders
✨ $ off spend threshold orders - FAQ
- Top Tips for Creating Loyalty Rewards
10 types of rewards and how to create them
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
✨ % off storewide
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:
- Select type of reward: percentage off
- Title: give your reward a title that represents the reward, i.e. X% off
- Points required to redeem: set how many points a customer must spend to redeem your reward
- Discount amount: the amount that is reflected in the title
✨ Free shipping (Online only)
Encourage your customers to make another purchase to benefit from free shipping.
To create:
- Select type of reward: free shipping (online only)
- Title: give your reward a title that represents the reward, i.e. Free Shipping
- Points required to redeem: set how many points a customer must spend to redeem your reward
✨ Free product (Online only)
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:
- Select type of reward: free product reward (online only)
- Title: give your reward a title that represents the reward, i.e. free "product name"
- Points required to redeem: set how many points a customer must spend to redeem your reward
- Retail price of the product
- Terms: it's a good idea to add 'online only'. Please add the item to your cart before checkout. Read more about adding terms to your 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.
✨ % off specific product
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:
- Select type of reward: % off specific product (online only)
- Title: give your reward a title that represents the reward, e.g. XX% off product name (online only)
- Points required to redeem: set how many points a customer must spend to redeem your reward
- Discount amount: the amount that is reflected in the title
- Under Advanced options: type in the specific products that the reward applies to
- Terms: it's a good idea to add 'online only'. Read more about adding terms to your rewards
✨ $ off specific product
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:
- Select type of reward: fixed discount amount
- Title: give your reward a title that represents the reward, e.g. $XX off product name (online only)
- 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
- Under Advanced options: type in the specific products that the reward applies to
- Terms: It's a good idea to add 'online only'. Read more about adding terms to your rewards
📝 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.
✨ % off product collection/category
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:
- Select type of reward: Percentage Off
- Title: give your reward a title that represents the reward, i.e. XX% off product collection name (online only)
- Points required to redeem: set how many points a customer must spend to redeem your reward
- Discount amount: number percentage of the reward
- Under Advanced options: select discount applies to selected collections
- Under Advanced options:
> BigCommerce users: check the collections that will apply for this reward
> Shopify users: add the collection name(s) that will apply for this reward. - Terms: It's a good idea to add 'online only'. Read more about adding terms to your rewards

> How to create a % off product collection reward in Shopify
> How to create a % off product collection reward in BigCommerce
✨ $ off product collection/category
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:
- Select type of reward: $Off
- Title: give your reward a title that represents the reward, e.g. $XX off product collection name (online only)
- Points required to redeem: set how many points a customer must spend to redeem your reward
- Discount amount: the amount that is reflected in the title
- Under Advanced options: select discount applies to selected collections
- Under Advanced options:
> BigCommerce users: check the collections that will apply for this reward
> Shopify users: add the collection name(s) that will apply for this reward. - Terms: It's a good idea to add 'online only'. Read more about adding terms to your rewards

> How to create a $ off product collection reward in Shopify
> How to create a $ off product collection reward in BigCommerce
✨ % off spend threshold orders
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:
- Select type of reward: % Off
- Title: give your reward a title that represents the reward, e.g. XX% off orders over $XX (online only)
- Points required to redeem: set how many points a customer must spend to redeem your reward
- Discount amount: the % amount that is reflected in the title
- Under Advanced options:
> Check the This discount requires a minimum purchase checkbox
> Type the $ amount required for the minimum order total - Terms: It's a good idea to add 'online only'. Read more about adding terms to your rewards
✨ $ off spend threshold orders
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:
- Select type of reward: Fixed discount amount
- Title: give your reward a title that represents the reward, e.g. $XX off orders over $XX (online only)
- Points required to redeem: set how many points customers must spend to redeem your reward
- Discount amount: type the amount that is reflected in the title
- Under Advanced options:
> Check the This discount requires a minimum purchase checkbox
> Type the $ amount required for the minimum order total - Terms: it's a good idea to add 'online only'. Read more about adding terms to your rewards

FAQ
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.
Top tips for creating loyalty rewards:
1. Get creative with your reward titles:
Add variety to your reward titles to create interest in redeeming your rewards. For example:
2. Use the '10% of dollar spend' rule
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:
- $5 off – 50 points
- $25 off your next purchase – 250 points
- 50% off 🎉 – 500 points
Or if $1 spend = 2 points:
- $5 off – 100 points
- $25 off your next purchase – 500 points
- 50% off 🎉 – 1000 points
3. Add terms and conditions to your rewards
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:
- Not available in conjunction with any other offer
- In-store only
- Online only
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!
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