How to Build a Loyalty Program on Shopify: 6 Best Loyalty Apps
A well-structured loyalty program encourages repeat purchases, builds brand loyalty, and fosters long-term relationships with customers.
Loyalty programs have become an essential part of eCommerce growth strategies, especially for Shopify store owners looking to retain customers and increase their lifetime value. A well-structured loyalty program encourages repeat purchases, builds brand loyalty, and fosters long-term relationships with customers.
In this article, we’ll guide you through the steps of building an effective loyalty program on Shopify, followed by a review of the six best loyalty apps you can use to automate and optimize your program.
Why Loyalty Programs Matter for Your Shopify Store
Before diving into the details of how to build a loyalty program, let’s look at why it’s important:
– Boosts Customer Retention:
It’s cheaper to retain customers than acquire new ones. Loyalty programs encourage customers to return to your store by rewarding them for their purchases.
– Increases Customer Lifetime Value (CLTV):
By offering points, rewards, or exclusive perks, customers are incentivized to spend more, increasing their lifetime value to your store.
– Builds Brand Advocacy:
A great loyalty program can turn your customers into brand advocates, who recommend your store to others, leading to organic growth.
– Fosters Emotional Connections:
Loyalty programs that offer personalized rewards or special treatment (like early access to new products) create emotional bonds between customers and your brand.
Steps to Building a Successful Loyalty Program on Shopify
1. Define Your Loyalty Program Goals
Start by determining what you want to achieve with your loyalty program. Your goals will influence how you structure the program and what types of rewards you offer.
Common goals include:
– Increasing repeat purchases
– Encouraging referrals and customer advocacy
– Boosting average order value (AOV)
– Reducing customer churn
2. Choose a Reward System
There are various ways to structure your loyalty program. Common reward systems include:
– Points-Based Programs: Customers earn points for each purchase, which they can redeem for discounts or free products.
– Tiered Rewards: Customers unlock higher rewards or perks as they spend more, encouraging them to reach new tiers.
– Referral Programs: Customers earn rewards for referring friends to your store, creating a viral loop for acquiring new customers.
– Cashback Programs: Offer customers a percentage of their spending back as store credit, which encourages future purchases.
3. Determine the Rewards
Decide what rewards to offer and how customers will earn them. Rewards can include discounts, free products, early access to new collections, or exclusive deals.
Common rewards include:
– Discounts on future purchases
– Free products or samples
– Free shipping
– Birthday gifts
– Early access to sales or new products
4. Set Up a User-Friendly Experience
Your loyalty program should be easy to join and navigate. Customers should be able to track their points, redeem rewards, and view their status in a simple and intuitive way. Use your Shopify store’s navigation or a dedicated loyalty dashboard to display program information.
5. Promote Your Loyalty Program
Make sure your customers know about your loyalty program by promoting it across multiple channels:
– On Your Website: Highlight the loyalty program on your homepage, product pages, and checkout.
– Via Email: Send email campaigns promoting the benefits of joining the program.
– On Social Media: Share the details of your loyalty program with your followers.
– In Post-Purchase Emails: Remind customers about the points they’ve earned and how to redeem them.
6. Measure and Optimize
Track the performance of your loyalty program regularly. Key metrics to monitor include:
– Customer retention rate
– Repeat purchase rate
– Customer lifetime value (CLTV)
– Redemption rates (how many customers redeem rewards)
Use this data to refine your loyalty program, making adjustments to your rewards or how points are earned to improve engagement.
The 6 Best Loyalty Apps for Shopify
To help you streamline and automate your loyalty program, Shopify offers several apps specifically designed for loyalty management. Here are the six best loyalty apps for Shopify:
1. Smile.io
Best for Points and Referral Programs
Smile.io is one of the most popular loyalty apps on Shopify, offering a comprehensive suite of features to help you create points-based loyalty programs, referral programs, and VIP tiers.
Key Features:
– Create points-based rewards for purchases, social shares, and referrals.
– Set up referral programs where customers can earn rewards for bringing new shoppers to your store.
– VIP tiers to reward your most loyal customers with exclusive benefits.
PROS
– Easy to set up and use.
– Customizable rewards, tiers, and referral structures.
– Gamified experience that encourages repeat purchases.
CONS
– Some advanced features, like VIP tiers, are only available in higher-tier plans.
Pricing:
– Free plan available with basic features.
– Paid plans start at $49/month.
2. Yotpo: Loyalty & Rewards
Best for Integrating Reviews with Loyalty
Yotpo is known for its product review features, but its Loyalty & Referrals solution is also highly effective. It allows you to build a robust loyalty program that ties customer reviews with loyalty rewards.
Key Features:
– Offer points for leaving reviews, making purchases, or following your social media accounts.
– Integrate your loyalty program with Yotpo’s review system to encourage customers to leave reviews in exchange for points.
– Referral programs to reward customers for bringing in new shoppers.
PROS
– Great integration with Yotpo’s review features.
– Encourages social proof and loyalty at the same time.
– Flexible point-earning options and custom rewards.
CONS
– More expensive than some other loyalty apps.
Pricing:
– Free plan available.
– Paid plans start at $29/month.
3. Bold Loyalty Points
Best for Customization
Bold Loyalty Points offers one of the most customizable loyalty programs on Shopify, allowing you to reward customers with points for almost any action, such as purchases, social shares, or newsletter sign-ups.
Key Features:
– Fully customizable point-earning and redemption rules.
– Create point multipliers for specific products or collections to incentivize higher spending.
– Tiered loyalty programs with personalized rewards.
PROS
– Highly customizable to fit any store’s specific needs.
– Integrates well with other Bold apps for upselling, subscriptions, and more.
– Detailed reporting and customer insights.
CONS
– Paid plans start at $29.99/month.
Pricing:
– $9.99/month.
4. LoyaltyLion
Best for Scaling Businesses
LoyaltyLion is a powerful and flexible loyalty app designed to help scaling businesses create highly personalized loyalty programs. It offers advanced features like loyalty tiers, customer segmentation, and analytics.
Key Features:
– Reward customers for purchases, social shares, and referrals.
– Create tiered programs where customers can unlock exclusive rewards as they spend more.
– Advanced customer insights and segmentation options to tailor rewards to specific groups.
PROS
– Highly customizable and scalable for growing businesses.
– Extensive reporting and analytics tools.
– Wide range of integrations with other Shopify apps and marketing tools.
CONS
– More expensive than basic loyalty apps.
Pricing:
– Free plan available.
– Paid plans start at $159/month.
5. Growave
Best All-in-One Loyalty and Marketing Tool
Growave is an all-in-one marketing app that offers loyalty programs, reviews, wishlist features, and social media integration. This makes it a great option if you’re looking for a multi-functional tool to engage customers.
Key Features:
– Points-based loyalty programs with rewards for purchases, reviews, and social media actions.
– Integrated reviews and wishlist features to increase customer engagement.
– Social login and referrals to help you acquire new customers.
PROS
– Combines loyalty with reviews, wishlists, and social engagement tools.
– Affordable compared to some other loyalty apps.
– Easy to set up and manage from the Shopify dashboard.
CONS
– Lacks some advanced customization options found in other apps.
Pricing:
– Free plan available.
– Paid plans start at $9/month.
6. Refersion
Best for Referral Programs
While Refersion is primarily a referral marketing platform, it’s an excellent choice for building a loyalty program that revolves around referrals. It allows you to track and reward customers who refer others to your store.
Key Features:
– Create referral programs where customers earn rewards for referring friends.
– Real-time tracking of referral conversions and rewards.
– Integrates with Shopify’s checkout to ensure seamless referral tracking.
PROS
– Excellent for businesses that want to focus on referral marketing.
– Real-time analytics and reporting.
– Scales well as your business grows.
CONS
– Lacks traditional points-based loyalty program features.
Pricing:
– Free trial available.
– Paid plans start at $99/month.
Conclusion: Build a Loyalty Program That Works for Your Brand
Building a loyalty program on Shopify is a smart way to foster customer loyalty, increase repeat purchases, and build long-term relationships with your customers. By offering rewards that are relevant to your audience and using tools to automate the process, you can create an engaging and profitable loyalty program that grows with your business.
The six loyalty apps we’ve reviewed—Smile.io, Yotpo, Bold Loyalty Points, LoyaltyLion, Growave, and Refersion—each offer unique features and benefits, so choose the one that best aligns with your goals and the needs of your customers. Whether you’re focused on points-based rewards, referrals, or VIP tiers, there’s an app that can help you turn one-time shoppers into loyal brand advocates
