Acquiring a new customer costs 5-7x more than retaining an existing one. A loyalty program incentivizes repeat purchases and turns one-time buyers into brand advocates. Here’s how to build one on Shopify.
Types of Loyalty Programs
- Points programs — earn points per dollar spent, redeem for discounts
- Tiered programs — Bronze/Silver/Gold tiers with increasing benefits
- Cashback programs — earn store credit as a percentage of spend
- Referral programs — rewards for referring friends who make a purchase
- VIP memberships — paid or earned access to exclusive benefits
Top Shopify Loyalty Apps
- Smile.io — most popular, excellent free plan, beautiful loyalty widget
- Yotpo Loyalty — best for brands already using Yotpo reviews
- LoyaltyLion — enterprise-grade, deeply customisable
- BON Loyalty — newer, generous free plan, easy setup
Setting Up Smile.io on Shopify
Install Smile.io from the Shopify App Store. In the Smile dashboard:
- Set your program name and point currency (e.g. “Stars”, “Coins”)
- Define earning rules: points per dollar, bonus points for specific actions
- Define redemption rules: X points = $1 discount
- Set up a referral program alongside the points program
- Customise the widget color to match your brand
Earning Actions Beyond Purchases
The best loyalty programs reward customers for more than just buying:
- Account signup (bonus points)
- Birthday (double points)
- Leaving a review (points)
- Following on social media (points)
- Referring a friend (significant bonus)
Promote Your Loyalty Program
- Mention it in post-purchase emails
- Add a points reminder to abandoned cart emails
- Create a dedicated loyalty program landing page
- Email your existing customers to invite them to join
