How to Decide How Many Loyalty Points to Give on Shopify

Quick Answer

Yes, deciding how many points to give comes down to your margins and how much you want to encourage a specific action. Keystone Loyalty Rewards lets you set point values per purchase, signup, or referral, but the actual numbers should come from a calculation, not a guess at what sounds generous.

Picking a point value out of thin air is one of the most common mistakes in setting up a loyalty program. This guide is for merchants wanting a more grounded way to decide how many points different actions should earn.

We will walk through calculating point values based on margin and the relative importance of each action, so the numbers hold up once real customers start earning and redeeming.

What Determines How Many Points to Give?

The right point value depends on what you can afford to give back through the eventual reward, and how much you want to encourage that specific action relative to others. A purchase and a referral might reasonably earn different amounts if one matters more to your goals.

Who Needs to Think Carefully About Point Values?

• Merchants setting up their first loyalty program and unsure where to start
• Stores with tight margins where overly generous points could hurt profitability
• Businesses wanting referral rewards to feel meaningfully different from purchase rewards
• Brands revisiting an existing program where point values were originally guessed
• Anyone running a promotion like 2x points and needing a baseline to double from
• Stores comparing their point values against what competitors seem to offer

Why Getting Point Values Right Matters for Your Business

• Points set too high can erode margin faster than the program brings in extra revenue
• Points set too low fail to motivate the behavior you are trying to encourage
• Consistent, calculated values make the program easier to explain and defend to customers
• Getting this right the first time avoids a confusing point value change later
• Different point values for different actions can signal which behaviors matter most
• A grounded calculation gives you a baseline to adjust from during promotions
• This calculation also protects you from unpleasant surprises once redemption volume grows

How to Decide Point Values on Shopify

Step 1: Define Your Loyalty Goal

Start with your numbers, not a feeling. Work out what you can afford to give back before setting any point value.

• Calculate the margin available to fund your planned reward
• Decide the redemption value of points in real currency terms
• Work backward from that redemption value to a sensible earning rate

Step 2: Install and Configure Keystone Loyalty Rewards

Install Keystone Loyalty Rewards and translate your calculated earning rate into an actual configuration for purchases, signups, or referrals.

• Connect the app to your Shopify store
• Use the app to input your calculated point values
• Compare the suggested setup against your own math before confirming

Step 3: Create Earning Rules and Rewards

Set the specific point values for each action you plan to reward, keeping the relative weighting intentional rather than arbitrary.

• Set points per dollar spent for purchases based on your margin calculation
• Set a flat point value for signups, usually lower than a typical purchase
• Set referral points high enough to feel worth the effort of referring someone
• Consider a custom earning rule if a specific product needs a different value

Step 4: Add the Loyalty Experience to Your Store

Add the point values to the places customers will see them, so the numbers are not just something you configured in the admin.

• Display how many points each action earns in the customer account
• Show point values on the storefront loyalty widget
• Explain point values clearly on the thank you page after a purchase

Step 5: Test the Program

Test each point value in practice, not just on paper, to confirm the numbers behave as calculated.

• Make a test purchase and confirm the exact number of points awarded
• Test the referral flow and confirm the referral point value is correct
• Confirm signup points, if included, award correctly on account creation

Step 6: Go Live

Before launch, sanity check the numbers one more time now that you have seen them applied to a real test scenario.

• Confirm the point values still make sense once seen in a real order
• Check that the relative weighting between actions still reflects your priorities
• Review whether the numbers are simple enough for customers to understand quickly

Deciding Point Values Examples

Industry: Candle brand
Problem: Points were set at a generous round number without checking the actual margin impact.
Setup: The brand recalculated points per dollar based on real margin data and adjusted the rate down slightly.
Result: The program remained appealing to customers while better protecting overall profitability.

Industry: Supplement brand
Problem: Referral points were the same as purchase points, giving customers little extra incentive to refer friends.
Setup: Referral points were set noticeably higher than standard purchase points to reflect their value to the business.
Result: Customers had a clearer incentive to refer rather than just make another purchase.

Read more case studies for our apps.

Best Practices for Deciding How Many Points to Give

• Calculate point values from your margin, not a number that simply sounds good
• Set referral points high enough to feel distinct from ordinary purchase points
• Keep the math simple enough that customers can understand the ratio quickly
• Test point values with a real order before finalizing them
• Avoid changing point values frequently once customers are used to them
• Revisit your calculation if margins or product pricing change significantly
• Document the reasoning behind your point values so future changes stay consistent

Summary

Deciding how many loyalty points to give on Shopify works best as a calculation, not a guess. Start from your margin and your redemption value, then work out point values for purchases, signups, and referrals through Keystone Loyalty Rewards. Test the numbers with a real order before launch.

If you want point values grounded in real numbers rather than a guess, Keystone gives you the setup tools to configure and test them properly.