Setting up a customer loyalty program is a powerful way to turn one-time buyers into loyal, lifelong brand advocates. It’s no secret that the average customer acquisition cost for e-commerce is going up, so getting users to come back for more is vital for longevity.
But actually building a loyalty program is only the beginning. This isn’t a set it and forget it strategy. The real loyalty program ROI comes from continuous iteration and understanding how to improve customer loyalty programs over time.
That’s why we’ve put together this guide on how to improve loyalty programs so you can optimize yours. From trying different rewards to leveraging data for more informed decision making, there are plenty of strategies you can explore to push the boundaries of loyalty.
If you haven’t already, though, switching to Rivo’s Shopify loyalty program platform is the best way to improve your program. It makes your life easier as a loyalty program manager, but more importantly, it allows for a more cohesive, on-brand experience with unparalleled customization.
Book a demo today and discover what’s possible with Rivo.
Benefits of Shopify Loyalty Programs
This structured system rewards customers for repeat purchases or other actions like referrals, reviews, or social follows. It’s designed to incentivize long-term engagement by offering perks, be it points, discounts, exclusive access, or freebies.
This is the long game for building higher customer lifetime value, lowering acquisition costs, and strengthening your brand moat. It can be one of your most efficient growth levers - here’s how:
- Increase Customer Lifetime Value (LTV): Loyalty members tend to spend more, shop more often, and stick around longer, according to customer retention statistics. A points or tier system gives customers a reason to come back and keeps your store top-of-mind.
- Offset Rising Acquisition Costs: Paid ads are expensive. You reduce dependency on performance marketing by turning happy customers into acquisition channels. You can afford to spend more aggressively, knowing you’ll make it up on the back-end, too.
- Improve Retention With Personalization: You can segment users by behavior, AOV, or tags and serve up tailored rewards that actually speak to different shopper types, rather than using a one-size-fits-all approach. This makes customers feel like family, and family is always eager to support you in any way possible.
- Build a Brand Community, Not Just a Storefront: Great loyalty programs tap into identity. Whether it’s VIP tiers or branded perks, you’re giving customers an opportunity to be part of something bigger than themselves.
Most Shopify brands understand loyalty is important. The ones that outperform, though, treat it like a growth engine rather than setting it and forgetting it, hoping it continues to work well in the background. So, let’s get into our top tips on how to improve customer loyalty programs.
How to Improve Customer Loyalty Programs
From improving loyalty segmentation to thinking more strategically about how to reward customer loyalty, there are so many great ways to improve loyalty programs.
But, you need to start by understanding what customer retention KPIs to track - otherwise, how can you know if your efforts are actually making a difference or not? Let’s begin there.
Audit What’s Working (and What’s Not)
Data is your best friend as a marketer. So, look at reward redemption rates, repeat purchase frequency, referral activity, and overall program participation. What are the common themes?
If a ton of people are earning points but no one’s cashing them in, that’s a red flag. If customers are referring friends but the conversions are low, your reward value or UX might be off. Make this a monthly ritual.
Create More Meaningful Rewards
“10% off your next purchase” won’t cut it anymore. The best loyalty programs tap into what your customers actually care about. This could be exclusive product drops, early access, store credit that stacks with promos, or even IRL experiences.
Better yet, give customers options: let them pick between a discount, free item, or donation to a cause they care about. Make it feel like a thank-you, not a coupon.
If you haven’t gotten into the habit of polling your most loyal customers for insights on what rewards will move the needle for them, this is something you should consider doing. Why play the guessing game when you get insights straight from the horse's mouth?
Gamify the Experience
Progress bars, badges, tiers, and streaks make earning feel like winning. These tend to be far better alternatives to loyalty points, and one of the top tips we have to share on how to improve customer loyalty programs.
Loyalty programs that tap into game mechanics create emotional engagement, not just transactional activity. Customers are more likely to come back when there’s a sense of achievement or something to unlock.
Don’t Just Reward Purchases
You’re missing a huge opportunity if the only way to earn points is by buying something. Today’s best loyalty programs reward social shares, product reviews, quiz completions, referral invites, and even birthdays or anniversaries - because these are all ways to foster loyalty!
These actions build a stronger connection with your brand and let customers engage in ways that don’t always involve their wallet. More importantly, they help you gather valuable data and UGC that fuels your broader marketing.
Simplify the Earning and Redemption Process
One reason why loyalty programs fail to deliver the ROI brands expect is they’re just too complicated. Customers shouldn’t have to decode your program like a puzzle.
Make points visible across your store, show progress toward rewards in the customer account, and use tooltips or post-purchase banners to reinforce what they’ve earned.
Bonus: add a checkout-based reward preview so they can apply rewards on the spot. Friction kills loyalty, so make the process as seamless as possible. Rivo can help you with this.
Segment and Target Your Loyalty Campaigns
This one should go without saying, and we hope you already have it in place. If not, though, you need to deliver personalized experiences to your customers. That starts with proper segmentation.
Not all customers are the same, so don’t treat them like they are. Reward your VIPs with higher-tier perks. Win back lapsed customers with exclusive one-time bonuses. Create flows based on behaviors (like referring a friend) and tailor messages accordingly.
Integrate Loyalty Into Every Channel
Your loyalty program should live everywhere your brand does. Embed point balances in emails, add referral CTAs to your post-purchase flows, and link loyalty dashboards from SMS or your mobile app.
Whether your customer lands in your inbox, feed, or storefront, they should see their rewards and know what to do next. This also goes a long way in encouraging opt-ins. You should be marketing your loyalty program like a product. More on that in a moment.
Encourage Habit Formation, Not Just Transactions
Your goal isn’t just to get one more order, it’s to build a habit. Use streak-based rewards (“shop 3 months in a row”), anniversary perks, birthday bonuses, or membership perks that unlock over time. Reinforce behavior through consistency and small wins, not just discounts.
Leverage First-Party Data to Refine the Program
We touched on the role of data in improving customer loyalty programs already, but take this a step further. Use data from loyalty behaviors to guide broader decisions.
Ask yourself, what products are VIPs buying? What rewards drive redemptions? Which channels actually influence referrals? Then, lean into those insights.
Loyalty programs generate rich, owned data that you won’t get through other channels. Use it to fuel smarter marketing, product planning, and customer lifecycle strategies.
Combine Loyalty With Other Retention Tools
Don’t silo loyalty from your broader retention stack. Pair it with subscriptions (earn more points when you subscribe), reviews (bonus points for feedback), or post-purchase surveys (insights + incentives). A loyalty program works best when it plugs into the full retention flywheel.
Consider Taking Loyalty Mobile
Loyalty shouldn’t live only in email flows or account dashboards. Bringing it to mobile via SMS, app push, or wallet passes makes your program feel more integrated into your customers’ lives.
More importantly, though, this increases visibility - rewards don’t get forgotten in inboxes or hidden behind login screens. Plus, you can personalize offers in real time, deliver location-based perks, or push reminders when a customer is close to their next reward.
Test, Iterate, and Promote the Program Like a Product
Ultimately, your loyalty program is no different than any other revenue-generating stream. It needs to be treated just like your core product offerings.
A/B test reward values. Trial limited-time campaigns. Promote new perks with the same energy you’d give a new collection drop. You’re leaving growth on the table if no one knows your program exists (or if the rewards feel stale).
Closing Thoughts on How to Improve Loyalty Programs
We hope you feel inspired by this guide on how to improve customer loyalty programs. It’s not just about throwing more points at your customers. Strive to make every interaction more intentional, more rewarding, and more connected to how they actually shop.
From smarter segmentation to frictionless redemption and habit-building rewards, the brands winning loyalty today treat it like a product, not a plugin. They test it, evolve it, and tie it into everything they do.
Now’s the time to upgrade how you do loyalty if you're serious about building long-term retention on Shopify. You’ll wish you’d started sooner once you see what’s possible with Rivo. Turn one-time buyers into lifelong fans with our platform today!