Docs/Merchants/Rewards Program
How points work
Your rewards program is a loop: customers earn points through activities, then redeem them for rewards. You control both sides of the loop from Rewards Program in the merchant portal.
Earning: activities
An activity is anything a customer does that earns points. Common ones:
| Activity | Typical reward |
|---|---|
| Place an order | Points per amount spent (e.g. 5 points per $1) |
| Create an account | Fixed welcome bonus |
| Refer a friend | Bonus when the friend's first order ships |
| Follow on social media | Small fixed bonus |
| Celebrate a birthday | Annual bonus |
Each activity is individually configurable: how many points, how often it can be earned, and who's eligible. Purchases work everywhere — online checkout and Shopify POS.
Multipliers
Paid members or specific customer segments can earn at a higher rate — for example, members earn 2× points on every order. Multipliers are configured per membership tier or via campaigns.
Redeeming: redemption options
A redemption option is what customers spend points on:
- Discounts — fixed amount or percentage off an order.
- Store credit — points convert into credit applied at checkout.
- Free products — a specific product for a set number of points.
- Gift cards — points convert into a Shopify gift card.
You choose the exchange rate for each option. Customers redeem from the on-site widget, their wallet pass, or at POS.
Balances and history
Every customer has a points balance and a full ledger of earning and redemption events. You can view (and manually adjust) any customer's balance under Members in the merchant portal — useful for making things right after a support conversation.
Points from a purchase are typically credited once the order is paid. If an order is refunded, the earned points are reversed automatically.
Approvals
Some activities can be set to require manual review before points are granted — for example, user-generated content or receipt uploads. Pending items appear under Approve in the merchant portal, where you accept or reject them in one click.
Designing a healthy points economy
A rule of thumb that works for most stores:
- Pick a redemption value first — e.g. 100 points = $5 off.
- Set purchase earning so a typical order earns 3–7% back in value.
- Keep welcome and social bonuses small relative to a purchase, so points stay tied to revenue.