How to Let Shopify Customers Redeem Points for Discounts

Quick Answer

Yes, letting customers redeem points for discounts is one of the most common reward types on Shopify. Keystone Loyalty Rewards supports discount rewards directly, letting customers exchange a set number of points for a percentage or fixed amount off their order, applied automatically once they choose to redeem.

A discount reward is usually the first thing merchants set up, since it is the most straightforward for customers to understand. This guide focuses specifically on configuring the discount reward type and making sure it applies correctly at checkout.

We will cover how to decide between a percentage or fixed discount, setting the point cost, and confirming the discount actually applies correctly once a customer chooses to redeem it at checkout.

What Does Redeeming Points for a Discount Involve?

This means a customer exchanges a specific number of accumulated points for a discount on their order, either a percentage off or a fixed dollar amount off, applied automatically once they select the reward at checkout or in their account.

Who Should Offer Discount Redemption?

• Any store wanting the simplest, most familiar reward type for customers
• Businesses wanting a reward that clearly connects points to a lower price
• Stores with margins that can absorb a percentage or fixed discount at redemption
• Brands launching their first loyalty program and wanting a low-complexity starting reward
• Merchants wanting a reward type customers do not need much explanation to understand
• Stores wanting a reliable baseline reward before experimenting with anything more unusual

Why Discount Redemption Matters for Your Business

• It is the most intuitive reward type for customers unfamiliar with loyalty programs
• It directly connects the effort of earning points to a lower price
• It requires little explanation compared to more unusual reward types
• It can be set up quickly as a first reward before adding more variety
• It gives customers a reason to complete a purchase once they see they can redeem
• It is easy to test since the outcome, a lower total, is simple to verify
• It works well as a baseline reward even after you add other reward types later

How to Set Up Discount Redemption on Shopify

Step 1: Define Your Loyalty Goal

Decide whether a percentage discount or a fixed dollar discount fits your margins better before configuring the reward itself in the app.

• Decide between a percentage discount or a fixed dollar amount off
• Set the point cost required to redeem this specific discount
• Consider whether the discount should have a maximum order value cap

Step 2: Install and Configure Keystone Loyalty Rewards

Install Keystone Loyalty Rewards from the Shopify App Store and configure the discount reward based on the decisions from step one.

• Connect the app to your Shopify store
• Set up the discount reward type directly in the app settings
• Confirm the suggested point cost matches your planned value

Step 3: Create Earning Rules and Rewards

Build the specific reward configuration, making sure the discount type and point cost are both set correctly before moving on to the next step.

• Set the discount amount, either percentage or fixed
• Set the exact point cost for this specific reward
• Confirm whether the discount should apply to the full order or specific products

Step 4: Add the Loyalty Experience to Your Store

Add the discount redemption option to the places customers will actually see and use it.

• Show the available discount reward in the customer account
• Add the loyalty widget so the discount option is visible while shopping
• Confirm the redemption option appears at checkout if that is where it applies

Step 5: Test the Program

Test the redemption directly, confirming the discount applies correctly once selected by a real customer account.

• Redeem the discount reward using a test account
• Confirm the correct percentage or dollar amount is deducted from the order total
• Check that the point balance decreases by the correct amount after redemption

Step 6: Go Live

Before launch, confirm the discount reward behaves correctly across a few different order scenarios.

• Test the discount against a small order and a larger order to confirm consistent behavior
• Confirm any maximum order value cap works as intended
• Check the redemption process on both desktop and mobile

Discount Redemption Examples

Industry: Bookstore
Problem: Customers accumulated points but were unsure what they were actually worth without a concrete reward to compare against.
Setup: A fixed dollar discount reward was introduced at a clear point cost, giving points an obvious, easy to understand value.
Result: Customers understood immediately what their balance meant once they saw the discount option available to them.

Industry: Kitchenware brand
Problem: A percentage discount was applied inconsistently across different order sizes, confusing customers about what they would actually receive.
Setup: The discount was capped at a maximum order value to keep the reward's cost predictable for the business.
Result: The discount behaved consistently regardless of order size, and the reward's cost stayed within expectations going forward.

Read more case studies for our apps.

Best Practices for Letting Customers Redeem Points for Discounts

• Choose between percentage and fixed discounts based on your margin structure
• Set a maximum order value cap if a percentage discount could become too costly on large orders
• Keep the point cost for a discount reward simple and easy to calculate
• Test the discount against both small and large orders before launch
• Make the discount option visible wherever customers manage their points
• Confirm the point balance updates correctly immediately after redemption
• Review redemption rates after launch to see if the point cost feels right to customers

Summary

Letting Shopify customers redeem points for discounts is one of the simplest and most familiar reward types you can set up. Decide between a percentage or fixed discount, set a clear point cost through Keystone Loyalty Rewards, and test the redemption across different order sizes before making it available to customers.

If you want a discount redemption option customers immediately understand without extra explanation, the Keystone loyalty app gives you the tools to set it up and test it properly.