Loyalty program FAQs

Loyalty programs reward repeat purchases and key behaviors, like sign-ups or referrals, with points that customers can exchange for discounts, special offers, or freebies.

Loyalty programs are designed to increase customer retention, boost average order value, and drive higher purchase frequency.

Some loyalty programs also reward non-purchasing actions, like following on social media, to strengthen continuous engagement and long-term relationships.

Loyalty programs increase sales by encouraging repeat purchases and increasing customer retention. By rewarding actions like buying more frequently or spending above a certain amount, they increase the average order value.

Programs can also create a sense of exclusivity and motivate customers to engage more with your brand, resulting in higher sales over time.

Loyalty programs work best for stores with products that have a high purchase frequency, like fashion, beauty and food & beverage. They’re also effective if you’re competing with similar stores, helping you stand out by offering extra value and rewards.

Whether you’re a small business or a large brand, loyalty programs can attract repeat customers and increase retention—so launching early is key to staying ahead of the competition.

Loyalty marketing is a marketing strategy to grow and retain existing customers with incentives.

It’s important as it costs less to retain existing customers than to acquire new ones. Loyal customers typically spend more, shop more frequently, and are more likely to refer others.

Use our ROI calculator to estimate the additional revenue a loyalty program could generate for your store. It analyzes key metrics like customer lifetime value, repeat purchase rate, and engagement, giving you a personalized projection based on real business data.

The cost to run a loyalty program includes software fees, initial setup, marketing, and rewards.

Ongoing expenses include maintaining the program, customer support, and marketing to promote loyalty. Costs vary depending on your business size and goals. Learn more in our loyalty program cost guide.

Profitability is influenced by reward value, customer engagement, average order value, and redemption rates. A well-balanced program with attractive rewards and high engagement will typically generate a higher return on investment by driving more frequent purchases and increasing customer retention.

LoyaltyLion is trusted by small and enterprise brands for its flexibility, deep customization, and superior user experience for your customers.

LoyaltyLion offers a fully embedded loyalty experience rather than relying on a pop-up widget, making it feel like a natural part of your store.

Make your own activities, rules & rewards, build flexible VIP tiers with exclusive perks, and integrate with 50+ tools to automate communications.

Our platform segments customers into groups like Loyal, At Risk, and Win Back, allowing you to personalize communications.

Ideal for omnichannel brands with multiple physical locations, LoyaltyLion lets your customers earn and redeem rewards online and in person.

Plus, our top-rated support team guides you through every step of the journey!

LoyaltyLion is built specifically for Shopify and Shopify Plus, ensuring seamless integration and reduced setup time. It’s optimized to leverage Shopify’s features, enabling real-time data syncing and a tailored, scalable loyalty experience.

LoyaltyLion’s integrated loyalty page provides a more immersive experience than pop-up widgets offered by other major platforms as it’s easier for customers to explore and engage without interruptions. Plus, a dedicated page improves SEO visibility and builds trust with a consistent, branded experience.

LoyaltyLion scales effortlessly for complex, enterprise businesses. With advanced customer segmentation and powerful integrations, you can create a seamless loyalty experience that supports omnichannel across multiple physical locations.

Our Plus plan includes tailored features like automated conditional flows and advanced analytics to surface repeat purchase rates & drop-offs.

Plus, you’ll get dedicated support, a Customer Success Manager, and strategic reviews to help optimize your program’s performance at every stage.

Take the 1st step by booking your FREE 30-minute session with a loyalty expert and we’ll recommend the right plan and optimal loyalty strategy for your business goals and industry.

Our top-rated support team guides you at every step, including:
– Build your dedicated loyalty page
– If using Klaviyo, build & integrate your email flows
– If switching providers, we’ll migrate your members’ points, birthdays and tiers

Set up rewards & tiers: We’ll help configure the points and rewards structure and define how customers can earn points, such as through purchases, account creation, and social media engagements.

Test and launch: We help test your rewards program to ensure it operates smoothly. It’s over to you to promote your new program through your marketing channels to drive customer engagement.

For more details, check out our 30-day launch timeline.

Your dedicated onboarding manager will help you pick up where you left off with minimal disruption to customers.

Program Replication: We’ll help replicate all aspects of your current loyalty program.

SDK & API: Maintain custom features during migration with the help of our developer tools and a developer.

Data Migration: We’ll handle the migration of points, tiers, and birthdays. Email trigger updates are your responsibility.

Order History: New orders will be tracked post-launch, but historical orders cannot be imported.

Get Started: Book a free 30-minute session to find the best plan for your goals.

With LoyaltyLion, you can have a fully customized loyalty program up and running in just 30 days. From setup to launch, our team will be with you at every step to ensure your success.

If migrating from another provider, we typically have your loyalty program migrated within three weeks, depending on the level of customization of your current program.

Our pricing is based on the average number of orders your store processes each month, allowing you to scale your loyalty program as your store grows.

Over time our pricing plans have been updated and we now offer more flexibility within each plan. For existing customers, unless otherwise stated in your order form, the base order limits per plan are capped as follows:

– Small Business: 800 orders
– Classic: 2,000 orders
– Advanced: 4,000 orders
– Plus: 10,000+ orders

If you’d like to review your current plan please get in touch to discuss your options.

Yes! Start a 14-day free trial to explore the platform and test its capabilities before committing. You can install the LoyaltyLion app from the Shopify App Store.

LoyaltyLion provides live chat and email support to help with any technical or program-related questions.

We offer specialist strategic reviews to optimize performance and uncover new growth opportunities for customers on the Advanced plan (twice yearly), and Plus plan (quarterly) on request.

An effective loyalty program should:

Align with customer values: Offer rewards that resonate, such as discounts, VIP perks, or impact rewards.

Simplify ways to earn and redeem: Make the process easy to understand and valuable.

Provide exclusive benefits: Offer early access, exclusive products, or events.

Personalize communication: Use data to create targeted and relevant messages.

Adapt and optimize: Regularly review performance and adjust based on feedback.

To calculate loyalty points, consider both your reward value and the desired ROI. A common starting point is offering 1 point per dollar spent. Next, set a redemption value (e.g., 500 points for $5 off). Calculate using this formula:

Reward Value ÷ Points Needed = Point Value

For more in-depth guidance, read our complete guide to calculating point values.

Furthermore, consider granting points for non-purchase actions like referrals or reviews to encourage deeper engagement.

The best rewards depend on your customers’ preferences and business goals:

Monetary rewards: Discounts, free products, or free shipping.

Experiential rewards: Exclusive events, early product access, or VIP experiences.

Social impact rewards: Integrate with an app like Verdn to offer rewards like tree planting or ocean cleanup that align with brand values.

Status-based rewards: VIP tiers that unlock perks like double points days and priority access.

Customizable rewards: Allow customers to choose how they spend their points, making the experience more engaging.

For more ideas, check out LoyaltyLion’s Loyalty and Rewards page.

Common mistakes include:

Overcomplicating the program: Keep it simple so customers can easily understand how to earn and redeem points.

Low perceived value: Ensure rewards feel meaningful and worth the effort.

Lack of promotion: Promote your program across all channels to drive awareness.

Ignoring data and feedback: Regularly analyze performance and adjust based on customer feedback and behavior.

Optimize your LoyaltyLion loyalty program to boost customer engagement by:

Optimizing rules:
– Set up custom rules to reward a variety of actions, like referrals, reviews, or social media engagement.
– Create bonus point campaigns, like awarding double points during special events or holidays.
– Use rules to encourage valuable behaviors, such as completing a profile or signing up for your newsletter.

By diversifying earning opportunities, you can drive deeper engagement and motivate customers to interact beyond purchases.

Optimizing rewards:
– Offer a mix of rewards, such as discounts, free products, and experiential perks (e.g., early access to sales).
– Include high-perceived value options like free shipping or impact rewards (e.g., tree planting) to appeal to different customer segments.
– Balance smaller, instant rewards with larger, aspirational ones to cater to both casual and high-value shoppers.

Regularly test and refine your rewards to see which ones drive the most engagement and satisfaction.

Optimizing VIP tiers:
Implement tiered loyalty levels to segment customers and offer exclusive benefits as they move up.

Yes, LoyaltyLion offers extensive customization options to fit your brand, such as:

Branded rewards page: We’ll build a template that matches your brand’s style, with further customization options.

Theme Editor: Adjust colors, images, and copy as your brand evolves.

Dynamic elements: Add points on product pages (Advanced & Plus plans) or redemption options at checkout (Shopify Plus).

Unique activities and rewards: Create earning rules and rewards that align with your brand values.

For advanced needs, LoyaltyLion offers:

API and SDK: Create custom features and unique functionalities using tools in our developer portal.

Custom rules and rewards: Define complex earning and redemption criteria.

Seamless integration: Sync loyalty elements across your Shopify store, product pages, and checkout.

Automated flows: Set up automated email and SMS flows with Klaviyo or LoyaltyLion Flows for custom conditional messages.

LoyaltyLion integrates seamlessly with Shopify and Shopify Plus, enhancing your store’s capabilities across several key areas:

Products: LoyaltyLion accesses your store’s product details to manage and update pricing and inventory, essential for setting up product-based rewards and discounts.

Vouchers and discounts: LoyaltyLion creates new voucher codes within Shopify so you can offer discounts or rewards to your customers.

Theme customization: LoyaltyLion inserts code snippets and integrates our scripts within your existing Shopify templates to ensure a smooth user experience.

Gift cards: For Shopify Plus merchants, LoyaltyLion can manage Shopify Gift Cards, allowing these to be used as customer rewards. This includes creating and modifying gift cards through Shopify’s APIs.

Wherever Shopify’s features can be leveraged, LoyaltyLion aims to enhance and extend these capabilities, providing a robust loyalty solution that grows with your business.

LoyaltyLion integrates with the subscription app Recharge so you can reward customers for recurring purchases and other subscription activities.

Customers can earn points on every renewal and redeem points directly within their subscription flow.

Available for Advanced and Plus plans, it’s ideal for increasing loyalty among subscription customers.

LoyaltyLion seamlessly integrates with leading email marketing platforms (such as Klaviyo, Mailchimp, Dotdigital, HubSpot, Omnisend, RedEye and Zaius) pushing key loyalty data to them so you can send relevant emails to foster retention and boost sales.

Total points (pending and approved): Monthly updates on members’ points balance help encourage customers to return and redeem their points.

Approved points (redeemable): Notify members when they’re close to earning a reward to motivate activity completion and repeat purchases.

Spent points: Regularly update members on their spent points to maintain brand engagement and loyalty.

Lifetime points: Segment your most loyal customers based on their lifetime points to offer exclusive rewards and promotions.

Number of rewards claimed: Identify active members to tailor communications and offer personalized incentives.

Date enrolled in the program: Celebrate loyalty program anniversaries with surprise bonus points.

Referral URL: Incentivize your loyalty members to ‘Refer a friend’ via email, social or SMS using a referral link.

LoyaltyLion analytics offer deep insights to help you continuously optimize your loyalty program:

Customer Behavior: Points earned/redeemed, purchase frequency, AOV, and CLV.

Reward Engagement: Track engagement and understand which actions drive loyalty.

Customer Segmentation: Customers are segmented as “Loyal,” “At Risk,” or “Win Back” for personalized targeting.

Revenue Impact: See the direct ROI of your loyalty program.

Advanced Analytics (Plus Plan): Detailed repeat purchase and drop-off rates for strategy refinement.

Yes, LoyaltyLion analytics tracks the direct revenue impact of your loyalty program.

Measure the increase in average order value, repeat purchase rate, and total revenue generated by loyalty members versus non-members.

Use these metrics to assess your program’s return on investment (ROI) and identify growth opportunities.

LoyaltyLion segments your customers into groups like “Loyal,” “At Risk,” and “Win Back.” This allows you to send targeted messages based on engagement levels, spending habits, or program activity, helping you create personalized strategies to maximize retention and loyalty.

On the Plus plan, gain visibility into repeat purchase and drop-off rates. Track the percentage of customers making repeat purchases from the 1st to 2nd, 2nd to 3rd and beyond. Note: Six months of drop-off data is needed to generate actionable insights.

VIP tiers are membership levels that customers can unlock based on specific criteria, like total points earned or spending thresholds.

Each tier offers progressively better rewards and benefits, encouraging customers to spend more and engage with your brand.

Loyalty tiers create a sense of exclusivity and motivate customers to reach higher levels to unlock premium perks.

LoyaltyLion offers multiple types of tiers to suit different business strategies:

Standard Tiers: Basic tiers where customers move up based on points earned or the amount spent.

Conditional Tiers: Customers must meet certain criteria (e.g., minimum purchase amount) to unlock rewards.

Hidden Tiers: Only visible to specific customers or unlocked after a unique action, creating an element of surprise.

Subscriber Tiers: Designed specifically for subscription-based businesses, rewarding customers for renewing subscriptions.

Select criteria that align with your business goals, such as total spend, points earned, or number of purchases.

Consider the behaviors you want to encourage, like larger order values or more frequent purchases. Setting the right criteria ensures customers are incentivized to reach the next tier without feeling it is unattainable.

To optimize your VIP tiers:

Offer attractive, tier-specific rewards (e.g., exclusive discounts or early access to sales).

Regularly review customer activity to ensure the criteria for each tier remain challenging but achievable.

Use hidden tiers to surprise high-value customers and encourage repeat purchases.

Test different rewards to see which ones drive the most engagement and refine based on performance data.

LoyaltyLion integrates with Shopify POS, allowing you to offer a seamless loyalty experience online and in one or more physical stores. Customers can earn and redeem points across multiple locations.

The Shopify integration is available for:
– Classic plan (Single location)
– Advanced plan (Multiple locations)
– Plus plan (Multiple locations)

This ensures your loyalty program works seamlessly no matter where your customers shop.

An omnichannel strategy connects your loyalty program across both online and offline channels, making it easy to promote your program to all customers and increase engagement everywhere they shop.

Benefits include:

Promoting your loyalty program to in-store customers and online shoppers.

Letting customers earn and redeem points across channels.

Offering special promo codes and rewards for online and in-store use.

Enrolling in-store customers and re-engaging them through email and SMS.

No, there’s no limit. You can connect one online store with unlimited physical locations under a single loyalty program, making it easy to manage loyalty across all your retail sites.

In-store, customers redeem loyalty rewards using Shopify POS. To do this, locate the customer’s account within Shopify POS using their email address. From there, you’ll see if they have any available rewards for redemption.

Automated flows are pre-configured sequences of messages triggered by specific customer actions, such as making a purchase, earning points, or reaching a new tier. These flows often include conditional logic and help you send personalized emails and SMS automatically, keeping your customers engaged without manual effort.

LoyaltyLion offers two tools for creating automated flows:

Klaviyo Integration: Loyalty events like “points earned” or “tier upgraded” are sent to Klaviyo to trigger personalized emails and SMS.

LoyaltyLion Flows: A loyalty-specific tool that helps you build more complex, loyalty-focused automations directly within LoyaltyLion to maximize engagement and drive ROI​ (available for the Plus plan. Add-on available for the Advanced plan).

The Klaviyo integration, available on all plans, sends loyalty events like “points earned” or “tier upgraded” to Klaviyo to trigger automated emails and SMS.

Additionally, with LoyaltyLion’s Klaviyo Events tool, you can build advanced loyalty flows within Klaviyo. (available for the Plus plan. Add-on available for the Advanced plan).

As a Klaviyo Elite Master Partner, LoyaltyLion ensures a seamless integration for Shopify and Shopify Plus stores.

If using Klaviyo, we’ll build and integrate your email flows for you as part of your onboarding, ensuring your customers are engaged from day one:

Essential email flows: Welcome, reward reminders and birthday messages.

Post-purchase emails: Encourage non-members to enroll in your loyalty program.

Advanced email flows: If you have Klaviyo Events, we’ll build your advanced email flows, reminding members of points expiring and imminent tier upgrades.

LoyaltyLion Flows lets you build tailored, loyalty-specific automations to send personalized emails and SMS through Klaviyo.

Choose from pre-built, goal-based flows or create custom flows using flexible flow blocks to trigger events like sign-ups, referrals, and reward redemptions.

Currently available on the Plus plan, with an add-on option for the Advanced plan, LoyaltyLion Flows is ideal for creating complex loyalty journeys that engage customers at key moments. Future support for more email providers is planned.