Rewards programs overview
Explore an overview of our points-based rewards programs, including earning and redeeming options, and learn how to effectively implement them in your Shopify store
Introduction
In the competitive world of e-commerce, retaining customers is not only more cost-effective than acquiring new ones but also essential for building a strong, lasting brand. A well-structured rewards program can play a key role in fostering customer loyalty, enhancing your relationship with them, and cultivating a community around your Shopify store.
Why do you need it?
A rewards program based on points is an effective way to engage your customers because it’s familiar and easy to understand. When customers can easily track their points, they know exactly what they need to do to reach their goals, which encourages them to return to your store for more rewards. This clear and straightforward system helps customers feel more connected to your brand, as they see tangible progress toward earning something valuable.
Here are a few reasons why implementing a rewards program can benefit your Shopify store:
Familiarity: Points are easy for customers to understand and track, helping them set goals and encouraging repeat visits for more rewards.
Brand Connection: A clear points system makes customers feel more connected to your brand as they see their progress and achievements.
Personalized Experience: Tailored rewards create a personalized shopping experience, making customers feel valued and boosting their loyalty to your store.
Setting up a points program with Joy Loyalty is straightforward—let’s move on to the next section to explore more.
Overview of our point program
Our points program focuses on earning and spending points, which in turn rewards customer purchases and encourages repeat visits. Customers can earn points for actions like placing orders, signing up, subscribing to newsletters, celebrating birthdays, writing reviews, and engaging on social media. These points can then be redeemed for rewards such as discounts, free shipping, or free gifts, keeping customers motivated to return and shop again.
Earning programs
Programs list
Our earning programs are divided into two groups: Online Store and Social. The two most common ways to earn points are by placing orders and signing up for accounts. Additionally, you can set up rewards for actions like subscribing to newsletters, receiving birthday rewards, leaving reviews, and engaging in social media interactions such as sharing and following.
How it works
These programs integrate seamlessly with your store activities through Shopify webhooks and API. Once activated, for example, the Place Order program will automatically credit points to a customer's balance for every new order. Be sure to turn these programs on only when you're ready to launch, as they will start applying immediately.
Redeeming programs
Online store
For redeeming programs, customers can exchange their points for coupons that they can apply to their cart. While the process bears some resemblance to creating discounts in the Shopify admin, it offers unique flexibility tailored to your loyalty program. Here are the different types of redemption options available:
Points for Fixed Discount: For example, 100 points could be redeemed for a $10 discount. You can set up step discounts like 100 points for $10, 300 points for $20, and 500 points for $30, allowing customers to redeem only at certain milestones. Alternatively, you can create a dynamic rate, such as 1 dollar off for every 10 points.
Points for Percentage Discount: Customers can redeem points for a percentage off their purchase. Since percentage discounts can lead to significant savings, it’s advisable to set a minimum order requirement to control the discount's impact.
Points for Free Shipping: Customers can use their points to cover shipping costs. You can specify which countries or order requirements apply to this option, giving you control over the free shipping offer.
Points for Free Gifts: Customers can redeem their points for free products selected by the admin. With this type of coupon, one item in the cart that matches the specified product will be free.
In the near future, when the store credit is supported by Shopify right out of the box, then it will provide a seamless way to use points on the Shopify store. This is in our development plan surely.
POS (Point of sales)
By default, these programs are active only in the Online Store channel. If you want to enable them on your POS system, you’ll need to set them up on your POS device (we use the Shopify POS UI extension for the best ease of use). For guidance, refer to our POS setup guide here. Once enabled on POS, you can use the following programs:
Points for a discount amount
Points for a percentage discount
Points for free products
FAQs
What currency do you use to calculate the points rewards?
The same as Shopify, we will work with the store's main currency which works in your Shopify admin. All the processing inside Shopify works with your store's main currency. All will be converted to the main currency and then the reward rate will be implemented to this total amount.
Are shipping and taxes included in the calculation of points rewarded?
If you choose the reward customer on the amount they spent as below, then it is: no, they are not. We will only add up the total price of the products matching the conditions (you can whitelist some of the products out of the program) in the order.
When will the points be rewarded to the customer after placing orders?
In the settings, you can change this behavior. By default, it will issue the points once the order is paid or marked as paid. You can also change it to Fulfilled to make sure that you can manually qualify the order and reward it once it is processed.
Wrap up
In the following posts, we'll take a closer look at each rewards program and explore how to maximize their potential. We’ve kept this overview brief because covering everything in one post would be overwhelming. Stay tuned for more detailed guides to help you get the most out of your rewards programs.
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