Run a loyalty program
Reward repeat customers with points, tiers, and perks that turn one-time buyers into regulars.
A loyalty program gives customers a reason to come back and buy again. By rewarding people for shopping with you, you turn one-time buyers into regulars.
Why loyalty pays off
Winning a brand-new customer usually costs more than keeping one you already have. A loyalty program leans into that: it rewards the people who already like you and gently nudges them to come back instead of shopping elsewhere. Over time, a small group of repeat customers can make up a large share of your sales.
How it works
A loyalty program rewards customers for actions you choose — usually making a purchase. The pieces fit together like this:
| Piece | What it is |
|---|---|
| Points | What customers earn for the actions you reward, like spending money |
| Tiers | Levels customers climb as they earn more, each with better perks |
| Rewards | What customers redeem their points for — a discount applied at checkout |
| Campaigns | Time-limited boosts, like bonus points during a sale |
| Members | The customers enrolled in your program, with their points and tier |
Customers earn points, climb through tiers, and redeem points for rewards.
Set up points earning
Decide how customers earn points. A common approach is to give points for every amount spent — for example, a point for each dollar. The more they shop, the more they earn.
Tip: Keep earning simple to explain. "Earn 1 point per dollar, get $5 off at 100 points" is something a customer can understand at a glance — and what they understand, they use.
Add tiers
Tiers create levels customers can work their way up, such as Bronze, Silver, and Gold. Higher tiers can come with better perks, which gives your best customers something to aim for.
When to use tiers
Tiers shine when you want to reward your very best customers with something extra and give everyone else a goal to climb toward. If your store is small or new, you can start with simple points and add tiers later once you have regulars worth recognizing.
Tip: Keep the first reward easy to reach. If customers see they're close to earning something, they're more likely to come back and finish the job.
Offer rewards
The built-in reward is a discount: customers redeem their points for money off at checkout. Choose a conversion rate that feels worth it but still makes sense for your margins.
| Reward type | Good for |
|---|---|
| Discount | A simple, popular reward people understand instantly — points become money off at checkout |
If you want to offer perks like free shipping or a small gift, you can do that manually for your best customers — they aren't built-in redeemable reward types, but they're a nice way to make loyal shoppers feel valued.
Balance is key: a reward that's too small won't motivate anyone, but one that's too generous eats into your profit. Aim for something that feels genuinely worth coming back for while still leaving you a healthy margin.
Run campaigns
Campaigns are limited-time boosts that add urgency, like double points during a holiday weekend or bonus points on a new collection. They're a great way to drive a burst of sales and remind quieter members that your program exists.
Tips for a program people use
- Keep the rules simple enough to explain in one sentence.
- Make rewards feel genuinely valuable — a token reward won't change behavior.
- Remind customers of their points balance so they don't forget what they've earned.
- Recognize your top tiers with perks that feel special, not just slightly bigger discounts.
Common mistakes to avoid
- Overcomplicating it — if customers can't tell how to earn or redeem, they won't bother.
- Rewards that hurt your margin — generous is good, unsustainable is not.
- Setting it and forgetting it — the occasional reminder or campaign keeps the program alive.
FAQ
Do I need tiers, or can I start simple?
You can start with simple points and rewards, which is plenty for a new store. Add tiers later, once you have enough repeat customers to make levels meaningful. A simple program people actually use beats a complex one they ignore.
How generous should my rewards be?
Generous enough to motivate a return visit, but not so generous they eat your profit. A good test: would the reward make you come back? Look at your margins and pick something that feels worth it on both sides.
How do customers know about their points?
Reminding members of their balance is one of the best ways to bring them back — people are motivated when they see they're close to a reward. Mention the program at checkout, in newsletters, and whenever you have a campaign running.
Who are my best customers to reward?
Your repeat shoppers are the ones a loyalty program is built for. You can see who keeps coming back on your Customers page and tailor perks to recognize them. See Customers for more.
What's next
- See who your repeat shoppers are — visit Customers.
- Pair loyalty with discounts and codes — see Coupons and discounts.
- Keep members coming back with email — see Send newsletters & grow subscribers.