You know what’s frustrating about running an online store? Shoppers come in, buy once, and never return.
It’s hard to grow a strong customer base when every sale feels like starting from zero (ugh! We hate that). But one of the best marketing “inventions” that can save you from this ruthless cycle is setting up a loyalty program.
And the easiest way to do that? With rewards program software.
This guide will show you how loyalty programs drive repeat purchases and what features to look for. We’ll also name the best Shopify rewards apps and compare them side by side.
Understanding Rewards Programs and Customer Loyalty
We have to make sure that we’re on the same page. So, let me tell you the basics before I show you the features and the best customer loyalty software out there.
What is a Rewards Program?
A rewards program is a way for businesses to encourage customers to come back, buy more, and stick around longer.
Let’s say you owned a makeup line. Cristy, one of your customers, bought a $30 foundation and earned 60 points. Then she saw a banner: “Claim your free blush at 100 points. Free shipping applies.” A few days later, she returned to buy a setting spray just to qualify.
Cristy didn’t really need the setting spray. But your offer nudged her to buy it.
And if you continue to offer perks like free products or early access to new arrivals, customers (like Cristy) will have a reason to come back. Again and again.
So, how is this different from a regular discount? Well, discounts are one-time deals. Loyalty programs reward customers every time they shop. And that helps keep your brand top of mind.
The Indispensable Role of Customer Loyalty
Customer loyalty is something money can’t buy. But it’s the one that brings the most in. Because when you reach that level of connection with your audience, sales will follow.
A 2024 survey showed that brands with loyalty programs generate 5 to 7 times what they invest (WOW). More income for your business, but fewer expenses. That’s every business’s dream.
Plus, a customer loyalty program increases customer retention. Loyal buyers make bigger orders, shop more frequently, and are more likely to be lenient with issues. They save you from going all-in to get new customers.
Do you know what happens next once you have an impressive base of loyal buyers? You’ll be the talk of the town.
About 36% of U.S. consumers said they discovered new brands through recommendations from other people. WOM beats paid ads and social media efforts… and the best part? It costs wayyy less.
How Rewards Programs Influence Customer Behavior
About 8 out of 10 Americans are part of at least one loyalty program. But why are people so into it?
Let me answer these questions in the simplest way (promise!):
- Positive reinforcement and habit formation: When you reward customers, they’ll feel good. So, they do it again, until it becomes second nature. That kind of consistency turns them from browsers into loyal buyers.
- Social influence: We humans love to join the crowd. That’s why people still line up for new Apple products after all those years. If your new customers see others earning rewards or reaching VIP status, they’re more likely to sign up… and stay active!
- Dopamine through gamification: Games release feel-good hormones. So when it’s used for loyalty programs, it taps into that same rush. For example, a “Spin to Win” feature after checkout can turn a routine order into something exciting.
You now know how rewards programs breed loyal customers (great!). Next, I’ll show you what features to look for in an effective customer loyalty software.
Essential Features of Effective Loyalty Program Software
A good customer loyalty software often has white-labeling features, diverse reward options, and extensive integration. I’ll discuss each and provide you with more things to consider:
Deep Customization and Branding Capabilities
Your loyalty program page has to mirror your brand. Or else, your customers might not recognize and connect with it (uh-oh).
But why does it matter? Lucidpress reported that consistent brand presentation can increase revenue by up to 23%. That means if your customers can see the color, tone, and look of your store on your loyalty program dashboard, you’ll build that trust faster as they’ll feel “at home.”
Now let’s go a bit deeper. Good loyalty program software should also let you group customers or create tiered rewards.
For example, if you sell skincare, you could offer free shipping to new customers and early product drops to your high spenders. That way, each person feels like the program was made for them (and makes them feel special).
Diverse and Engaging Reward Options
Discounts are a great way to reward your loyal customers. But do you know what else is? Free products, early access, exclusive events, and even experiences.
Diverse reward options keep everything fun. You don’t want the same 10% coupon over and over, right? That’s what your customers feel, too. Especially for those who’ve been with you for a long time.
One of our clients set up a custom loyalty program with three tiers. New shoppers earned loyalty points toward freebies, while VIPs got invites to online workshops and product testing events. They also used digital loyalty cards to track redemptions and run seasonal loyalty campaigns.
Because they offered a little something for everyone, they saw better program performance and were able to retain customers for repeat business.
Smart Integrations That Scale With You
Integrations are a thing in the present and future. It’ll be difficult to survive as an ecommerce business without them.
For example, your POS systems should connect directly with your loyalty software. That way, you won’t have to manually input your customers’ earned points for that transaction.
You’ll also want it to sync with your CRM and ecommerce platform. This gives you one place to measure key metrics, see your customer data, and lets you automate rewards for different channels.
Plus, go for a tool that you can grow with because that’s the secret for a long-term and healthy setup. And not something that breaks down the moment things get serious. Yup, I’m still talking about software here (*wink*).
Robust Analytics and Reporting for Loyalty Management
What good is a loyalty program if you can’t see how it’s performing?
Look for dashboards that show which rewards get redeemed most, how long people take to earn points, and what drives referral programs’ success.
Plus, the best tool lets you create custom reports. Maybe you want to see how your holiday campaign performed or which customer group brings the most value. With this feature, you can check problems early and double down on what works.
PRO-TIP: Set up monthly data reviews. Look for patterns like which rewards people ignore or which customer segments need more attention.
User-Friendly Interface for Both Admins and Customers
Your team shouldn’t feel like they need a computer science degree to manage loyalty programs. If that’s what’s happening, then you’re using the wrong tool.
The admin dashboard should be simple enough (for you and your team) to set up new rewards, check member activity, and handle customer questions.
But a user-friendly interface should also reach your customers. That way, they’ll feel comfy using your reward app. We think Starbucks is the best example here.
When both sides of your program are easy to use, everyone wins!
Exploring Types of Loyalty Programs Supported by Software
Now we already know the features you have to look for in loyalty software. But what types of programs can you offer? Some most popular options include point-based systems, tiered programs, and store credit or cashback models.
Point-Based and Tiered Programs
Point and tiered systems are the most common loyalty setups. In point-based programs, shoppers earn and redeem points for rewards like discounts or gifts. Tiered programs reward status. The more they spend, the better the perks.
Many brands use both. Take Sephora’s Beauty Insider as an example.
Their shoppers earn points, but also move through Insider, VIB, and Rouge tiers.
Cashback and Spend‑Based Programs
You know what most shoppers like more than earning points? Saving money. It’s no wonder that 53% of U.S. consumers prefer cashback rewards over any other loyalty setup. Programs like “Spend $100, get $10 back” also feed instant gratification that makes shoppers come back.
Spend-based programs are a bit similar to points systems. But it rewards customers based on their total spending (and not how often).
Referral and Subscription Models
If you’ve seen influencers share their experience about a product or service and provide you with a “code” to use at the end, then you already know how referral programs work. Customers get rewarded for inviting others (and those new buyers often get a little bonus, too).
In the blue corner are subscription models. What happens is that a customer pays a flat fee for perks like exclusive products, early access, and free shipping. Ipsy is my fave example for this type of loyalty program.
Other Types of Loyalty Programs
There are a few more loyalty models you might come across.
Membership programs charge a fee (monthly or annually) in exchange for VIP perks, like Amazon Prime.
Punch card programs reward repeat purchases with a freebie after a set number of orders (“Buy 5, get 1 free”).
And there’s gamification: some brands add challenges, leaderboards, or badges to make earning rewards more fun.
Top Shopify Rewards Program Software Solutions
There’s no perfect loyalty program. But these third-party apps surely stole the spotlight from their competitors and are worth checking out.
| Platform | Key Features | Pros | Cons | Pricing |
| Channelwill Loloyal | Rewards, VIP tiers, referrals, social engagement, double-points promos | Easy to use, Shopify POS sync, multilingual support | Slow live chat support | $29/month (free plan and free trial available) |
| Smile.io | Points, referrals, and social activity | Easy setup, good integrations for new users | Limited customization, support delays | $49/month (free plan available) |
| Growave | Rewards + Wishlists, reviews, referrals | Includes wishlist and reminder tools | Mobile bugs, leftover code post-uninstall | $49/month for 500 orders |
| Rise.ai | Store credit, cashback, gift cards, branded wallet | Good for bulk gifting, supports digital & physical cards | Tricky setup, some fraud risks | $19.99/month |
| Appstle | Points, referrals, VIP, cart/checkout redemption | Affordable, checkout reward redemption | POS integration not reliable | $10/month (free plan available) |
1. Channelwill Loloyal
Loloyal is the top pick when it comes to incentivizing customers. It helps you set up a rewards program, build VIP tiers, run referral campaigns, and even reward customers for social engagement.
You can make the loyalty page match your store’s branding, recommend the right perks to the right shoppers, and run double-points promos during big sales. How cool is that?
What users love about Loloyal is how easy and accessible it is. It works for both online and offline orders, connects smoothly with Shopify POS (no need to segment your buyers manually), and supports multiple languages.
While live chat still needs some improvement, as it can be slow at times, we still saw more users praising how good the customer support is.
The plans start at $29/month. But there’s a free trial and plan for new users.
Easy to customize your brand loyalty program
Want to see how it handles loyalty programs? Book a demo today.
2. Smile: Loyalty Rewards Program
Another app you can check is Smile.io. You can encourage repeat purchases by using its points-based rewards, social activity, and referrals.
It works well with tools like Klaviyo and Gorgias, and many brands appreciate how easy it is to launch and manage (especially for first-time loyalty users).
But we saw some users commented about its limited customization and slow customer support. Plus, other brands said that reward redemption wasn’t always smooth for shoppers. And that’s not good, as they can leave their carts (uh-oh) if your rewards program doesn’t work as promised.
Smile.io is free to install (like Loloyal), but its paid plans start at $49/month.
3. Growave: Loyalty & Wishlist
Growave works like the first two. But what makes it a bit different is that they partner the rewards feature with wishlists.
You know those moments when shoppers save an item but don’t check out? Wishlists reduce that drop-off. Shoppers can save items, engage customers with gentle reminders, and earn loyalty points when they return to buy.
Users liked that it combines rewards with tools like reviews and referrals to support the full customer journey (pretty handy if you’re short on apps). But some merchants reported bugs on mobile and leftover code after uninstalling (yikes!), which could slow your store.
Pricing starts at $49/month and covers 500 monthly orders.
4. Rise.ai: Gift Cards & Loyalty
Rise.ai is also a loyalty software but it focuses more on store credit, cashback, and gift cards. You know what that means? Your customers earn actual dollar value that they can spend right away. Plus, it bundles everything into one branded wallet for a smoother customer journey.
Some merchants say it’s great for gifting. But others didn’t like how hard it is to set up. Users also reported fraud. And that’s a deal breaker for most store owners, because safety should be a top priority.
You can get started with Rise.ai for $19.99/month.
5. Appstle Loyalty Reward Programs
Last on our customer loyalty platform’s list (but still a great one!) is Appstle.
It covers the basics like points, referrals, and VIP perks. But one thing that’s helpful is the ability to redeem rewards right in the cart or at checkout.
You can use that to push sales at the right moment (especially when customers are still deciding). Plus, tracking customer engagement is also possible on its dashboard.
Users love how affordable it is. But some complained about the migration process. And Appstle’s one main feature is integration with POS, but looking at the comments… it’s not doing so well in that area.
Pricing starts at $10/month, with a free plan available.
Strategic Considerations When Selecting Loyalty Software
Choosing the right loyalty program software goes beyond features and flashy demos. You need to think about three big areas: your business size, the budget and setup, and customer support.
Fit for Your Business Needs, Size, and Industry
Small businesses and enterprise companies need completely different things from their loyalty platform. For example, a small online jewelry store might just need simple loyalty points that customers earn for purchases. But a multi-brand fashion retailer? They need customer data tracking, billing integration, and advanced analytics for customer retention.
Industry matters too. Retail stores focus on repeat purchases and average order value. Service businesses care more about booking frequency and customer referrals. What works for one probably won’t work for the other (and that’s totally fine).
Budget, Setup, and Long-Term ROI
Loyalty software pricing models vary wildly. Some charge per transaction, others per customer, and many offer tiered monthly plans.
Don’t just look at the monthly fee, though. Factor in setup costs, integration fees, and unlimited transaction limits that might surprise you later.
Speed matters more than you think. If your loyalty program software takes three months to set up, you’re losing potential loyal customers every day. Look for solutions that promise quick onboarding and actually deliver on it.
PRO-TIP: Always test the free trial or request a demo with your actual customer data. Setup fees can range from zero to thousands of dollars, so ask upfront.
Support You Can Count On
Put yourself in your customer’s shoes: What would you feel if you tried to redeem loyalty points during a flash sale, only to get an error message? Would you be angry? Confused? Or maybe ready to shop elsewhere.
Before you even get to that point, make sure your customer loyalty platform works well with Shopify, your CRM, and any marketing tools you already use. If your systems don’t talk to each other, it’s harder to track rewards, segment customers, or automate anything… at all.
24/7 support is a huge plus when you’re managing loyalty programs during peak times or expanding to new markets.
You need people who understand loyalty management, not generic tech support who’ll tell you to “restart your browser” (we’ve all been there).
Implementing and Optimizing Your Customer Loyalty Program
Getting your loyalty program software live takes (serious) planning.
You’ll want to have clear goals, pick the right audience segments, and do ongoing tweaks to keep customers engaged with your rewards program. And we’ll show you how to do that:
Set Clear, Measurable Goals First
SMART goals shape everything about your customer loyalty program. Want to boost customer retention by 25%? Or increase average order value? Then you have to brainstorm, pick (and design) your rewards to match those targets.
Your goals also affect how you set up your loyalty program software. If lifetime value matters most, reward purchases with points that unlock perks over time. If you’re aiming for quick wins, offer immediate discounts.
Define the Right Audience Segments
Here’s the truth: rewards work best when you know who you’re targeting. Your customer data reveals who buys regularly, spends more, or brings friends through customer referrals.
One of our clients ran a beauty brand and noticed something interesting. Customers buying premium skincare had 3x higher lifetime value than budget shoppers.
They created a VIP tier with early product access and free consultations. Result? A 40% lift in repeat purchases in six months.
Launching Your Rewards Program Effectively
Don’t rush your launch… but don’t overthink it either. Start with internal testing. Make sure the app syncs properly with your ecommerce system. Then, prep your team and do a soft launch with your most engaged buyers.
Continuous Monitoring and Analysis
Programs fail when they’re ignored. One perfume store we know saw a redemption tank after a few months. When they refreshed their offers (early access and samples), engagement bounced back.
PRO-TIP: Review program performance monthly. A/B test your rewards and change them up every few months to keep things interesting.
Future Trends Shaping Rewards Program Software
What should we expect from the rewards program in the coming years? Good question. Future trends will include AI personalization, blockchain ownership, and omnichannel experiences that work everywhere your customers shop.
A recent study found that 73% of consumers expect more personalization. One of our clients used AI to suggest snacks at checkout and saw repeat purchases jump by 20%.
Blockchain is slowly becoming more common in loyalty programs (though still early-stage for most ecommerce stores). It lets customers truly own their rewards as digital tokens they can gift, trade, or store in their phone wallets. This setup works best for younger shoppers or brands selling digital goods.
And don’t overlook omnichannel experiences. Nordstrom’s Nordy Club is a solid example. It lets customers earn and redeem points across their website, app, and physical stores.
When your loyalty platform performs consistently across all touchpoints, it keeps things simple for customers and helps you track customer behavior across their journey.
What’s Next?
Wow! That was a detailed article about loyalty programs. Congrats on making it to the end. Now, it’s time to take action.
Ready to increase customer lifetime value by up to 56%? Book a demo with our team at ChannelWill Loloyal and see how it actually works in action.
