Strategy

Why Your Shopify Loyalty Program Isn’t Working (And How to Fix It)

You launched a loyalty program. You added a widget. You even promoted it once or twice.

But… no one’s using it.

If your Shopify loyalty program isn’t increasing LTV, repeat purchases, or referrals—it’s not doing its job. Here’s why that might be happening (and how to fix it).

1. You’re hiding it

If customers don’t know it exists, they won’t use it.

Fix it:

  • Show points earned on the product and checkout pages
  • Include point balances in account dashboards
  • Mention the program in post-purchase emails and flows
  • Add a launcher to your site header or footer

2. The rewards are boring

“$5 off after 15 orders” is not inspiring. Neither is 1000 points = 5% off something nobody wants.

Fix it:

  • Offer meaningful, high-perceived value rewards (free shipping, early access, VIP experiences)
  • Let customers redeem sooner
  • Include non-discount perks (e.g. exclusive products)

3. You forgot about referrals

Referrals are the growth part of your loyalty loop—and often overlooked.

Fix it:

  • Offer dual-sided rewards (the referrer AND their friend benefit)
  • Make it easy to share links
  • Promote it visibly—email, social, customer dashboard

4. It’s not automated

If you’re manually managing rewards, tracking referrals, or sending point emails—it won’t scale.

Fix it: Use an app that automates:

  • Earning and redemption
  • Birthday or milestone triggers
  • Tier upgrades
  • Referral rewards and affiliate tracking

Toki, Smile, and LoyaltyLion all support automation—just choose based on your complexity needs.

5. You’re not tracking performance

If you can’t measure what’s working, you can’t fix what’s not.

Fix it: Track:

  • % of customers enrolled
  • Repeat purchase rate for loyalty vs. non-loyalty customers
  • Points issued vs. points redeemed
  • Referral conversion rates

Final Thoughts

A loyalty program isn’t a set-it-and-forget-it tool. It’s a retention system—one that needs to be visible, valuable, automated, and performance-driven.

If yours isn’t working, don’t scrap it. Refactor it.