How to Offer Free Gifts as Loyalty Rewards on Shopify

Quick Answer

Yes, you can let customers redeem loyalty points for a free gift instead of a discount or gift card. Keystone Loyalty Rewards supports free gift rewards, letting you choose a specific product that gets added to a customer order automatically once they redeem the required points.

A free gift reward gives customers something tangible rather than a number off their total, which can feel more memorable than a discount. This guide covers choosing the right product and setting up the redemption correctly.

We will cover picking a product suited to this reward type, setting the point cost, and making sure the gift actually gets added to the order once a customer redeems it, rather than requiring a manual step from your team.

What Does a Free Gift Reward Involve?

A free gift reward lets a customer exchange points for a specific product, which gets added to their order once redeemed. This differs from a discount or gift card since the customer receives an actual item rather than a reduction in price or flexible spending value.

Who Should Offer Free Gift Rewards?

• Brands with a product well suited to giving away in smaller quantities
• Stores wanting a reward that feels more memorable than a discount
• Businesses wanting to introduce customers to a new or underperforming product
• Beauty and food brands where a free sample or small item fits naturally
• Any merchant wanting to add variety to their existing reward lineup
• Stores wanting a reward customers can look forward to physically receiving
• Brands with excess inventory of a specific item they want to move through loyal customers

Why Free Gift Rewards Matter for Your Business

• They feel more memorable to customers than a routine percentage off
• They can introduce customers to a product they might not have tried otherwise
• They give you a way to use inventory that might otherwise move slowly
• They add variety to your reward lineup without requiring a discount
• They can differentiate your loyalty program from competitors offering only discounts
• They give customers something concrete to anticipate rather than an abstract dollar value
• They can turn a single redemption into a chance to introduce a customer to a new favorite product

How to Set Up Free Gift Rewards on Shopify

Step 1: Define Your Loyalty Goal

Choose a specific product for this reward before configuring anything, since the product itself shapes the rest of the setup.

• Choose a product with enough inventory to support ongoing redemptions
• Decide the point cost based on the product's actual value to your business
• Confirm the product can be added to an order without disrupting fulfillment

Step 2: Install and Configure Keystone Loyalty Rewards

Install Keystone Loyalty Rewards from the Shopify App Store and configure the free gift reward using the product and point cost you decided on.

• Connect the app to your Shopify store
• Set up the free gift reward type directly in the app settings
• Select the specific product that should be added upon redemption

Step 3: Create Earning Rules and Rewards

Build the specific reward configuration, confirming the gift adds correctly to an order once a customer redeems the required points.

• Set the point cost required to redeem the free gift
• Confirm the selected product adds automatically to the order
• Decide if the gift should have a limited redemption window tied to inventory

Step 4: Add the Loyalty Experience to Your Store

Add the free gift redemption option to the places customers manage their loyalty points.

• Show the free gift option in the customer account
• Add the loyalty widget so customers see this reward while browsing
• Confirm the reward is described clearly, including what the actual product is

Step 5: Test the Program

Test the redemption directly to confirm the gift adds correctly to a real order once redeemed.

• Redeem the free gift reward using a test account
• Confirm the correct product is added to the resulting order
• Check that the point balance decreases by the correct amount after redemption

Step 6: Go Live

Before launch, confirm the free gift reward works correctly and that inventory can support it going forward.

• Confirm the product added matches exactly what was configured
• Check that fulfillment can handle the added gift without extra manual work
• Monitor inventory levels for the gift product after launch

Free Gift Reward Examples

Industry: Skincare brand
Problem: Discount rewards felt routine, and the brand wanted a way to introduce customers to a newer product.
Setup: A free gift reward was set up using a smaller size of the new product, redeemable at a set point cost.
Result: Customers who redeemed the gift tried the new product, and some went on to purchase the full size later.

Industry: Specialty tea brand
Problem: A slower-moving product needed more exposure, but a discount alone had not moved much inventory.
Setup: The product was offered as a free gift reward, giving loyal customers a reason to try it at no added cost.
Result: Inventory of the slower-moving product decreased as customers redeemed points for it.

Read more case studies for our apps.

Best Practices for Offering Free Gifts as Rewards

• Choose a product with enough inventory to support consistent redemptions
• Set the point cost based on the product's real value, not an arbitrary number
• Confirm fulfillment can handle the added gift without extra manual steps
• Use free gifts to introduce customers to underperforming or newer products
• Test the redemption with a real order before launch
• Monitor inventory levels for the gift product regularly once live
• Rotate the specific gift product occasionally to keep the reward feeling fresh

Summary

Offering free gifts as loyalty rewards on Shopify gives customers something tangible to redeem instead of a discount. Choose a product suited to this reward type, set a fair point cost through Keystone Loyalty Rewards, and confirm fulfillment can support it before making the reward available.

If you want to offer a tangible reward beyond a discount, Keystone Loyalty Rewards app supports free gift redemption directly in your loyalty program setup.