How to Create a Rewards Program for a Shopify Store

Quick Answer

Yes, a Shopify store can run a rewards program covering more than just points. Keystone Loyalty Rewards supports discounts, gift cards, free gifts, and free shipping as reward types, so you can choose what fits your margins and what your customers would actually want to redeem in practice.

A rewards program is broader than a points system alone, since it includes the actual choice of what customers get back for their effort. This guide is for merchants deciding what kinds of rewards to offer, not just how points are earned in the first place.

We will cover the different reward types available, how to decide which ones fit your store and margins, and how to set them up so customers have a genuine reason to redeem rather than just accumulate points they never use.

What Is a Rewards Program?

A rewards program is the full system connecting customer actions to tangible benefits, discounts, gift cards, free gifts, or free shipping. The points system is the mechanism, but the rewards themselves are what make the program worth participating in for the customer.

Who Needs a Rewards Program?

• Stores wanting more reward variety than a single discount option
• Brands with products suited to free gift rewards, like beauty or food
• Stores with high shipping costs where free shipping is a meaningful reward
• Businesses wanting gift cards as a flexible, non-discount reward option
• Brands wanting to differentiate rewards for different customer segments
• Stores that have run the same single reward for a long time without change

Why a Varied Rewards Program Matters for Your Business

• Different customers value different rewards, so variety increases actual redemption
• Free shipping rewards can appeal to price-sensitive customers specifically
• Gift card rewards give customers flexibility instead of a fixed discount
• Free gift rewards can introduce customers to new products
• A single reward type can feel stale after repeated use
• Variety gives you room to test which rewards customers actually respond to
• It lets you tailor rewards to different customer segments over time

How to Set Up a Rewards Program on Shopify

Step 1: Define Your Loyalty Goal

Decide which reward types actually fit your business before configuring anything, since not every reward type suits every store or every margin structure.

• Decide if a discount, gift card, free gift, or free shipping fits your margins best
• Consider offering more than one reward type for customer choice
• Decide the point cost for each reward type based on its actual value to you

Step 2: Install and Configure Keystone Loyalty Rewards

Install Keystone Loyalty Rewards and configure your chosen reward types based on the decisions from step one.

• Connect the app to your Shopify store
• Set up your selected reward types
• Review the suggested point costs against your own calculations

Step 3: Create Earning Rules and Rewards

Build out the specific earning rules that feed into these rewards, along with any custom gifts you want tied to specific point thresholds for your best customers.

• Set up points for purchases as the primary way to earn toward rewards
• Configure your discount, gift card, or free shipping reward options
• Add a custom gift reward if you want a distinct, non-monetary option
• Set point costs so each reward feels achievable but not too easy

Step 4: Add the Loyalty Experience to Your Store

Make sure customers can see and choose between reward options easily, not just discover one option by accident.

• Display available rewards clearly in the customer account
• Add the loyalty widget to your storefront so rewards are visible while shopping
• Show reward options at checkout if relevant to your setup

Step 5: Test the Program

Test each reward type individually to confirm it applies correctly when redeemed.

• Test redeeming a discount reward and confirm the correct amount applies
• Test redeeming a gift card reward, if included
• Test that a free gift reward, if included, adds the correct product to the order

Step 6: Go Live

Review the full reward lineup one more time before customers start redeeming for real.

• Confirm reward values still make sense for your margins
• Check that reward descriptions are clear to customers
• Confirm all reward types display correctly on both desktop and mobile

Rewards Program Examples

Industry: Candle brand
Problem: A single discount reward felt repetitive and did not stand out from other promotions.
Setup: The brand added a free gift option alongside the existing discount reward.
Result: Customers had a reason to redeem beyond a discount they might get from a sale email anyway.

Industry: Outdoor gear retailer
Problem: Shipping costs were a common complaint, but discounts alone did not address it.
Setup: A free shipping reward was added at a specific point threshold.
Result: Customers who valued avoiding shipping costs had a reward option that addressed that specific concern.

Read more case studies for our apps.

Best Practices for a Rewards Program

• Offer more than one reward type if your margins allow it
• Match reward types to what your specific customers actually value
• Keep point costs proportional to each reward's real value to you
• Use free gifts to introduce customers to other products in your catalog
• Test every reward type before launch, not just the first one you set up
• Review reward performance periodically and adjust ones that go unused
• Ask a handful of existing customers what reward would actually get them to redeem

Summary

Creating a genuinely useful rewards program for your Shopify store means choosing which reward types fit your business, discounts, gift cards, free gifts, or free shipping, and setting point costs that feel fair to both sides. Keystone Loyalty Rewards supports all of these reward types, so start with one or two, test them thoroughly, and expand once you see which ones customers actually redeem rather than ignore.

If you want a rewards program with more than one reward type to choose from, the Keystone loyalty app gives you discounts, gift cards, free gifts, and free shipping to choose from.