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How to Reward Shopify Customers With Gift Cards
A guide to setting up gift card rewards as a loyalty redemption option on Shopify.
5 minutes
Social Media Manager
Published
Updated
Quick Answer
Yes, you can reward Shopify customers with gift cards through your loyalty program. Keystone Loyalty Rewards supports gift card rewards, letting customers redeem points for a gift card of a set value they can use on any future order, rather than a discount tied to one specific purchase.
A gift card reward gives customers more flexibility than a discount, since it can be used whenever they are ready rather than applying immediately. This guide covers setting up gift cards specifically as a redemption option.
We will cover deciding the gift card value relative to points redeemed, how the reward gets delivered to the customer, and testing the redemption to confirm the gift card actually works once it has been issued to a real account.
What Does a Gift Card Reward Involve?
A gift card reward lets a customer exchange points for a gift card of a specific value, which they can then use on any future purchase rather than a discount that applies to the current order only. This gives customers more control over when they use their reward.
Who Should Offer Gift Card Rewards?
- Stores wanting a more flexible alternative to a straightforward discount
- Brands wanting customers to feel less pressure to redeem immediately
- Businesses wanting a reward that can encourage a future purchase, not just the current one
- Stores with customers who buy occasionally rather than on a predictable schedule
- Any merchant wanting to offer more than one type of redemption option
- Brands wanting a reward that feels distinct from anything offered through regular promotions
Why Gift Card Rewards Matter for Your Business
- They give customers flexibility to use the reward whenever they are ready
- They can encourage a future purchase rather than only benefiting the current order
- They feel like a distinct, valuable reward compared to a routine discount
- They work well for customers who do not buy on a frequent, predictable schedule
- They add variety to your reward lineup without much added complexity
- They keep the customer connected to your store for a future visit
- They can feel more like a genuine gift than a discount tied to one transaction
How to Set Up Gift Card Rewards on Shopify
Step 1: Define Your Loyalty Goal
Decide the gift card value relative to the points required to redeem it, keeping the ratio consistent with any other rewards you already offer.
- Decide the gift card dollar value for this specific reward
- Set the point cost required to redeem it
- Compare this value against your discount reward, if you offer one, for consistency
Step 2: Install and Configure Keystone Loyalty Rewards
Install Keystone Loyalty Rewards from the Shopify App Store and configure the gift card reward based on your planned value and point cost.
- Connect the app to your Shopify store
- Set up the gift card reward type directly in the app settings
- Confirm the suggested configuration matches your planned value
Step 3: Create Earning Rules and Rewards
Build the specific gift card reward, confirming exactly how it gets issued once a customer redeems their accumulated points.
- Set the gift card value and its corresponding point cost
- Confirm the gift card issues automatically upon redemption
- Decide if the gift card should have an expiration date of its own
Step 4: Add the Loyalty Experience to Your Store
Add the gift card redemption option to the places customers manage their loyalty points.
- Show the gift card reward option in the customer account
- Add the loyalty widget so customers see this option while browsing
- Confirm redemption instructions are clear if any manual step is involved
Step 5: Test the Program
Test the redemption directly to confirm the gift card is issued correctly and actually works on a subsequent order.
- Redeem the gift card reward using a test account
- Confirm the gift card is issued automatically with the correct value
- Test using the issued gift card on a separate test order to confirm it applies correctly
Step 6: Go Live
Before launch, confirm the full gift card redemption and usage cycle works smoothly from start to finish.
- Confirm the gift card value matches what was configured
- Check that the point balance decreases correctly after redemption
- Confirm the gift card works correctly when applied to a future order
Gift Card Reward Examples
Industry: Furniture retailer
Problem: Customers bought infrequently, and a discount tied to a single order rarely got used before it felt irrelevant.
Setup: A gift card reward was introduced, letting customers redeem points and use the value whenever they were ready to buy again.
Result: Customers held onto their gift card until their next natural purchase rather than letting a time-limited discount go unused.
Industry: Outdoor apparel brand
Problem: The brand only offered a discount reward and wanted more variety without adding significant complexity.
Setup: A gift card option was added alongside the existing discount, giving customers a choice between the two.
Result: Customers who preferred flexibility chose the gift card, while others still used the original discount.
Read more case studies for our apps.
Best Practices for Rewarding Customers With Gift Cards
- Keep the gift card value consistent with your other reward types
- Confirm the gift card issues automatically without manual fulfillment
- Decide clearly whether the gift card itself should expire
- Test the full cycle, redemption and later usage, not just the redemption step
- Offer gift cards alongside a discount option rather than as a sole reward type
- Make redemption instructions clear if any step requires customer action
- Check that the gift card value matches your intended point-to-dollar ratio exactly
Summary
Rewarding Shopify customers with gift cards gives them flexibility that a standard discount simply does not, since the value can be used whenever they are ready to buy again. Configure the gift card value and point cost through Keystone Loyalty Rewards, and test the full redemption and usage cycle before launch.
If you want to offer customers a genuinely flexible reward option beyond a standard discount, Keystone supports gift card rewards directly in your loyalty program.
Frequently asked questions (FAQs)
A discount applies immediately to the current order, while a gift card gives customers a value they can use on any future purchase whenever they choose.
Yes, a properly configured gift card reward issues automatically once a customer redeems the required points, without needing manual fulfillment.
This is a decision you can make based on your preference, some merchants set an expiration to encourage timely use, while others leave it open-ended.
Yes, offering multiple reward types, including both a discount and a gift card, gives customers a choice based on what they actually prefer.
Redeem the reward with a test account, confirm the gift card issues with the correct value, and then test applying that gift card to a separate order.