Insights

What 400+ Shopify Merchants Taught Us About Loyalty Programs

We’ve worked with over 400 Shopify merchants to help launch, improve, and scale their loyalty programs. Along the way, we’ve seen patterns—what works, what fails, and what nobody talks about.

Here are the top insights we’ve learned from merchants like you.

1. Most Loyalty Programs Are Set and Forgotten

The biggest mistake? Treating loyalty as a one-time setup.

Successful merchants revisit their loyalty strategy every 3–6 months:

  • Update rewards based on seasonality
  • Promote referral links regularly
  • Add loyalty to welcome and post-purchase flows
  • Test new incentives (early access, limited-edition merch, etc.)

2. Customers Need Reminders They’re Earning

Just having a loyalty program isn’t enough.

Top-performing brands:

  • Remind customers of their point balance via email
  • Mention point earnings on the thank-you page
  • Show how close they are to the next reward (gamification!)

Make loyalty visible at every step of the funnel.

3. Paid Memberships Drive Serious Retention

A growing number of Shopify brands now offer paid loyalty memberships—think:

  • Free shipping club
  • Members-only discounts
  • Early access to launches

These programs drive way higher LTV. Merchants who add memberships to their loyalty stack often see:

  • 25–40% higher repeat rate
  • More upfront cash flow
  • Stickier customer relationships

4. Simplicity Wins

Don’t overcomplicate it. Customers don’t want to read an instruction manual.

Best practices:

  • Use whole numbers (e.g. 1 point = $0.10)
  • Make redemption dead simple
  • Avoid too many tiers or confusing rules

Clear = conversion.

5. Merchants Who Integrate Loyalty Into Brand Story Win

Top merchants don’t treat loyalty like an “extra.” They make it part of the experience.

Examples:

  • “Join our rewards club” is on their homepage
  • Points are earned for actions aligned with their mission (e.g. sustainable choices, donations)
  • Loyalty program names are branded (“The Golden Circle,” “Club Bloom,” etc.)

Final Takeaway

The best loyalty programs feel like part of the brand—not a bolted-on feature.

If you’re serious about retention, take the time to strategically build, test, and evolve your program. You’ll be in good company—because the best Shopify brands already are.