How to Set Up Loyalty Points on Shopify

Quick Answer

Yes, setting up loyalty points on Shopify is a matter of defining what earns points and what those points are worth. Keystone Loyalty Rewards handles the points system itself, letting you set earning rules for purchases, signups, and referrals, then decide how many points each reward costs to redeem.

Loyalty points only work if customers understand how to earn them and what they are worth. This guide is for merchants setting up a points system for the first time and wanting to avoid a confusing or overly complex structure.

We will cover the actual mechanics: which actions should earn points, how to set point values, and where customers can see their balance. The goal is a points system that is simple enough that customers actually engage with it, rather than one so complicated that nobody bothers checking their balance.

What Are Loyalty Points?

Loyalty points are a unit of value customers earn through specific actions, like purchases or referrals, and later redeem for rewards. The points themselves have no value until connected to a reward, which is why setting that connection clearly matters.

Who Needs a Loyalty Points System?

• Stores with customers who make repeat purchases within a normal buying cycle
• Brands wanting a structured way to reward account signups
• Businesses wanting to reward referrals without manual tracking
• Subscription brands wanting an added reason for customers to stay
• Stores with enough margin to support points-based discounts
• Brands that already collect customer accounts but give them no ongoing benefit

Why a Points System Matters for Your Business

• It gives customers a tangible, trackable reason to keep buying
• It rewards actions beyond just purchases, like signups and referrals
• It creates a simple mental model customers can understand quickly
• It supports promotions like double points periods later on
• It gives you data on which actions customers actually respond to
• It works well alongside email marketing rather than replacing it

How to Set Up Loyalty Points on Shopify

Step 1: Define Your Loyalty Goal

Decide which specific actions should earn points before touching any settings. Most stores start with purchases, since that is the most direct connection to revenue.

• Decide if purchases, signups, or both should earn points initially
• Decide whether referrals should earn points from the start or be added later
• Set a rough sense of how generous the point earning should be

Step 2: Install and Configure Keystone Loyalty Rewards

Install Keystone and translate your planned earning rules into an actual configuration. This avoids guessing at settings you are unfamiliar with.

• Connect the app to your Shopify store
• Set up your initial earning rules
• Review the suggested point values against your own expectations

Step 3: Create Earning Rules and Rewards

Build out the specific earning rules and decide what points are worth. This is the part that determines whether the system feels generous or stingy to customers. Getting this balance right matters more than adding extra earning rules early on.

• Set points earned per dollar spent on purchases
• Set a flat point amount for signups if included
• Decide the point cost for your first reward, such as a discount
• Consider custom earning rules if certain products should earn differently
• Decide if any conditional earning rules apply, such as a minimum order value

Step 4: Add the Loyalty Experience to Your Store

Customers need to see their points to care about them. Add the points balance to the places they already visit.

• Show the point balance on customer accounts
• Add the loyalty widget to your storefront so points are visible while shopping
• Display points earned on the thank you page after a purchase

Step 5: Test the Program

Test the earning side and the redemption side separately before launch, since each has its own way of going wrong.

• Make a test purchase and confirm the correct number of points is awarded
• Test redeeming points for your first reward and confirm the discount applies
• Check that the point balance updates immediately after a purchase

Step 6: Go Live

Before going live, confirm the numbers actually make sense for your business rather than just working technically.

• Confirm point values do not make the first reward too easy or too hard to reach
• Check that earning rules display clearly to customers
• Confirm the points balance is visible on both desktop and mobile

Loyalty Points Setup Examples

Industry: Skincare brand
Problem: Customers had no reason to create an account or return for a second purchase.
Setup: Points were set up for both purchases and account signups, redeemable for a discount.
Result: More customers created accounts, and repeat purchases had a clear incentive attached.

Industry: Pet supply store
Problem: Customers reordered food regularly but never engaged with the brand beyond checkout.
Setup: Points were awarded per dollar spent, with a free shipping reward at a set threshold.
Result: Customers began tracking their point balance and timing orders to reach the free shipping reward, giving the brand more predictable order timing.

Read more case studies for our apps.

Best Practices for Setting Up Loyalty Points

• Start with one or two earning rules, not five at once
• Make the point value per dollar spent easy to calculate mentally
• Set your first reward at a point threshold customers can reach quickly
• Show the point balance somewhere customers will actually see it
• Test the full earn and redeem cycle before launch
• Avoid changing point values frequently once customers get used to them
• Keep the redemption process short, ideally a single step at checkout

Summary

Setting up loyalty points on Shopify means deciding what earns points, how many points those actions are worth, and where customers can see their balance. Keystone Loyalty Rewards handles the technical setup, but the actual point values and earning rules should reflect your margins and typical order size. Test the full cycle before launch.

If you want to set up a points system customers actually understand, the Keystone loyalty app gives you the earning rules and redemption tools to do it.