- 20 Oktober 2025
- Ridwan Fauzi, S.psi
- customer retentione-commerce marketinggift card strategyloyalty programsloyalty rewardsrepeat customersshopify appsShopify gift cardsShopify store optimization
Here’s a sobering reality: acquiring a new customer costs five times more than retaining an existing one. Yet, many Shopify store owners focus exclusively on attracting new visitors while overlooking the goldmine right in front of them—their current customers.
If you’re watching customers make a single purchase and disappear, you’re not alone. But you’re also leaving significant revenue on the table. The good news? Two powerful tools can transform one-time buyers into loyal brand advocates: gift cards and loyalty programs.
In this guide, we’ll walk you through exactly how to set up both features on your Shopify store, share proven strategies that drive results, and show you how to create a customer retention system that works while you sleep.
Why Gift Cards and Loyalty Programs Matter for Your Bottom Line
Before we dive into the setup process, let’s talk about why these tools deserve your attention.
Gift cards solve multiple business challenges simultaneously. They bring new customers to your store (the gift recipients), generate immediate cash flow, and often result in purchases that exceed the card’s value. According to industry research, 72% of gift card recipients spend more than the card’s face value—that’s pure margin expansion.
Loyalty programs work differently but equally powerfully. They increase customer lifetime value by incentivizing repeat purchases. When customers know they’re earning rewards, they’re more likely to choose your store over competitors. Research shows that members of loyalty programs generate 12-18% more revenue per year than non-members.
Together, these tools create a customer retention ecosystem that compounds over time. Loyal customers buy gift cards for friends, those new customers join your loyalty program, and the cycle continues.
Key Takeaway: Gift cards and loyalty programs aren’t just nice-to-have features—they’re revenue-generating systems that pay for themselves many times over.
Setting Up Shopify Gift Cards: Your Step-by-Step Blueprint
Shopify makes gift cards remarkably straightforward, but there are strategic decisions that separate good implementation from great results.
Enabling Gift Cards in Your Shopify Store
First, you’ll need to activate gift cards in your Shopify admin. Here’s the process:
- Navigate to your Shopify admin dashboard
- Go to Products > Gift cards
- Click “Add product” if you don’t see a gift card product already created
- Shopify automatically creates a gift card product type for you
The beauty of Shopify’s native gift card feature is its simplicity—no third-party app required for basic functionality. Gift cards work across all your sales channels, including your online store, POS system, and mobile app.
Configuring Gift Card Denominations and Options
Here’s where strategy comes in. You need to decide what gift card values to offer. We recommend starting with 4-5 denominations that align with your average order value (AOV).
If your AOV is $75, consider offering:
- $25 (entry-level, perfect for small gifts)
- $50 (mid-tier, your most popular option)
- $100 (premium, for generous gifters)
- $150 (high-value, for special occasions)
- Custom amount (always include this option)
To set denominations, edit your gift card product and add variants for each value. Make the custom amount option prominent—many customers prefer choosing their own value.
Designing Your Gift Card Presentation
Visual presentation matters more than you think. Shopify allows you to customize gift card images and email templates. Create designs that:
- Match your brand aesthetic
- Feel premium and gift-worthy
- Work for multiple occasions (holidays, birthdays, thank-you gifts)
- Include clear redemption instructions
You can create seasonal variations (Christmas, Mother’s Day, graduation) to increase relevance and urgency. Update these at least quarterly to keep your gift card offerings fresh.
Setting Up Gift Card Delivery Options
Shopify gift cards are delivered electronically by default, but you can enhance this experience:
Email delivery: Customers receive a unique code via email. Ensure your email template is mobile-responsive and includes clear “Shop Now” calls-to-action.
Scheduled delivery: Allow customers to schedule when the gift card email is sent—perfect for birthdays or future occasions.
Physical gift cards: If you have a retail location or want to offer physical cards, you can print gift card codes and include them with shipped orders or sell them in-store.
Key Takeaway: Your gift card setup should be frictionless for buyers and delightful for recipients. Test the entire purchase and redemption flow before promoting gift cards.
Implementing a High-Converting Loyalty Program
While Shopify doesn’t include native loyalty program functionality, several excellent apps integrate seamlessly with your store. The right choice depends on your business model, customer base, and technical requirements.
Choosing the Right Loyalty App for Your Store
The Shopify App Store offers dozens of loyalty program solutions. Here are the top contenders and when to use each:
Smile.io: Best for stores wanting comprehensive features without overwhelming complexity. Offers points, VIP tiers, and referral programs. Great for fashion, beauty, and lifestyle brands.
LoyaltyLion: Ideal for data-driven stores that want deep analytics and customer insights. Stronger reporting features and advanced segmentation. Perfect for mid-sized businesses scaling their retention strategy.
Yotpo Loyalty: Best if you’re already using Yotpo for reviews. Integrated loyalty and reviews create powerful social proof loops. Excellent for brands focused on community building.
Growave: All-in-one solution including loyalty, reviews, wishlists, and Instagram integration. Best for smaller stores wanting multiple features in one app.
For most Shopify stores, we recommend starting with Smile.io or LoyaltyLion—they offer the best balance of features, ease of use, and ROI.
Designing Your Points and Rewards Structure
This is where many stores stumble. Your rewards structure needs to be generous enough to motivate behavior but sustainable for your margins.
Follow this framework:
Points earning opportunities:
- $1 spent = 5-10 points (adjust based on margins)
- Account creation = 100-250 points (welcome bonus)
- Social media follow = 50-100 points per platform
- Birthday = 250-500 points
- Product review = 100-200 points
- Referral = 500-1000 points (for both referrer and friend)
Redemption structure:
- 500 points = $5 off (1% reward rate)
- 1000 points = $12 off (1.2% reward rate—incentivizes saving)
- 2500 points = $35 off (1.4% reward rate—incentivizes larger redemptions)
The key is creating a graduated reward structure where customers get slightly better value for saving points. This increases engagement and average order values.
Creating Engaging VIP Tiers
Tiered programs outperform flat programs by 30-40% because they tap into psychology—people love status and progression.
Structure your tiers around annual spending:
Bronze Tier (Entry-level): All loyalty members start here
- Standard points earning
- Early access to sales
- Birthday reward
Silver Tier ($250-500 spent annually):
- 1.25x points earning
- Free shipping on all orders
- Exclusive member-only products
- Priority customer service
Gold Tier ($500-1000+ spent annually):
- 1.5x points earning
- Free shipping + free returns
- First access to new launches
- Personal shopper or concierge service
- Surprise gifts and bonuses
Name your tiers to reflect your brand personality—don’t feel bound to Bronze/Silver/Gold if other names resonate more with your audience.
Integrating Loyalty with Your Marketing Stack
Your loyalty program shouldn’t exist in isolation. Connect it to:
Email marketing: Send points balance updates, tier progression notifications, and reward expiration reminders. Customers with points balances have 30% higher open rates.
SMS marketing: Text customers when they’ve earned enough points to redeem a reward. Include a direct link to checkout.
Post-purchase experience: Show points earned immediately after purchase. Include points balance in order confirmation emails.
On-site messaging: Display points balance in your site header for logged-in customers. Show points earning potential on product pages.
Key Takeaway: A loyalty program is only effective if customers know about it and engage with it regularly. Make points earning and redemption visible throughout the customer journey.
Advanced Strategies to Maximize Results
Once your basic systems are in place, these advanced tactics will amplify your results.
Bundle Gift Cards with Loyalty Incentives
Reward loyalty members with bonus points for purchasing gift cards. For example: “Loyalty members earn double points on all gift card purchases.”
This creates a flywheel effect—your best customers become your best advocates, bringing in new customers through gift card gifting.
Create Limited-Time Bonus Point Events
Run flash promotions where customers earn 2-3x points for 24-48 hours. These events create urgency and can revive dormant customers.
Promote these events via email and SMS to your entire customer base, not just active loyalty members. It’s a low-risk way to re-engage lapsed customers.
Use Gift Cards as Loyalty Rewards
Allow customers to redeem points for gift cards at a preferential rate. For example, if 500 points normally equals $5 off, offer a $10 gift card for 800 points.
Gift cards feel more valuable than discounts because they’re portable and can be saved for a special purchase.
Segment Loyalty Communications
Not all loyalty members are the same. Create segments based on:
- Tier status
- Points balance
- Time since last purchase
- Product categories purchased
Send targeted campaigns to each segment. High-tier members get exclusive previews and premium perks. Members close to the next tier get encouragement to reach it. Members with expiring points get urgency-driven reminders.
Track and Optimize Your Metrics
Monitor these KPIs monthly:
- Loyalty program enrollment rate
- Active member percentage (made a purchase in last 90 days)
- Points redemption rate
- Average order value: members vs. non-members
- Customer lifetime value: members vs. non-members
- Gift card redemption rate
- Gift card breakage rate (unused balances)
- Average gift card overspend
Use this data to refine your points structure, promotional strategy, and reward offerings.
Key Takeaway: The stores that see the best results from gift cards and loyalty programs treat them as dynamic systems that require ongoing optimization, not set-it-and-forget-it features.
Common Pitfalls to Avoid
Even with the best intentions, these mistakes can undermine your success:
Making rewards too difficult to earn: If customers need to spend $1,000 to get a $10 reward, engagement will be minimal. Aim for customers to earn their first reward within 2-3 purchases.
Complicated redemption processes: Every extra step in redemption reduces conversion. Make applying points at checkout automatic or require just one click.
Ignoring mobile experience: Over 70% of e-commerce traffic is mobile. Ensure your gift card purchase flow and loyalty program interfaces work flawlessly on smartphones.
Poor communication: Customers can’t engage with a program they don’t understand or remember. Over-communicate rather than under-communicate, especially in the first 90 days after launch.
Neglecting non-members: Don’t make non-loyalty members feel like second-class customers. Everyone should receive excellent service—loyalty perks should feel like bonuses, not necessities.
Making It All Work Together
Gift cards and loyalty programs are most powerful when they work in concert. Here’s how to create that synergy:
Promote gift cards to loyalty members with bonus points. Encourage gift card recipients to join your loyalty program upon first purchase. Use loyalty points to drive gift card purchases during holiday seasons. Feature your most engaged loyalty members in gift card marketing campaigns.
The goal is creating a customer ecosystem where every interaction reinforces the value of staying connected to your brand.
Your Next Steps
Setting up gift cards and loyalty programs is just the beginning. The real magic happens when you commit to ongoing optimization and customer-centric thinking.
Start with gift cards if you want immediate cash flow and new customer acquisition. Start with a loyalty program if you have a solid base of repeat customers you want to activate more frequently. Ideally, implement both within 60 days of each other for maximum impact.
If you’re feeling overwhelmed by the technical setup, integration challenges, or strategic decisions, you’re not alone. This is where partnering with experienced Shopify developers can accelerate your success and avoid costly mistakes.
At MNBApps, we’ve implemented hundreds of Shopify optimization projects, including custom loyalty program integrations and conversion-focused gift card strategies. We don’t just set up features—we design retention systems that align with your specific business model and growth goals.
Whether you need hands-on implementation, strategic consulting, or ongoing optimization support, we’re here to help you turn one-time buyers into lifetime customers.
Ready to build a customer retention system that drives measurable results? Let’s talk about your specific challenges and goals. Your customers—and your bottom line—will thank you.