Best Practices for Launching a Loyalty Program
Best Practices for Launching a Loyalty Program with Kefi: Loyalty Program Rewards
Launching a loyalty program isn’t just about offering points—it’s about creating a long-term relationship with your customers. With Kefi: Loyalty Program Rewards, you have the tools to transform one-time buyers into repeat customers and brand advocates.
This guide outlines proven best practices to help you launch your program successfully, maximize engagement, and drive measurable growth.
1. Start with Clear Goals
Before activating your Points Program, define what success looks like.
Ask yourself:
Do you want to increase repeat purchases?
Improve Customer Lifetime Value (CLV)?
Reduce cart abandonment?
Encourage daily engagement?
Promote specific products?
Best Practice:
Align your earning and redemption rules with one primary goal first. You can always expand later.
2. Design a Simple & Understandable Points Structure
Simplicity increases participation. Customers should immediately understand:
How to earn points
How to redeem them
What the rewards are worth
Recommended Setup for Launch:
Ways to Earn
Sign Up Bonus – Offer a strong welcome incentive (e.g., 100 points)
Place an Order (Incremental) – Reward spending proportionally (e.g., 5 points per $1 spent)
Daily Visit – Encourage habitual engagement (limit to 1 per day)
Birthday Reward – Build emotional loyalty
Best Practice Tip:
Start with incremental order-based rewards. This encourages higher cart values and scales naturally with your revenue.
3. Make Rewards Feel Valuable (But Sustainable)
Your rewards must feel exciting—while still protecting your margins.
Balanced Redemption Strategy:
Percentage Off → Great for increasing average order value
Free Shipping → Reduces cart abandonment
Amount Off (Fixed) → Simple and clear value
Free Product → High perceived value reward
Best Practice:
Avoid setting rewards too cheap at launch. Start slightly conservative—you can always increase generosity later based on data.
4. Optimize Reward Expiration
Expiration creates urgency.
Set rewards to expire (e.g., 30 days)
Remind customers before expiration
Avoid “Never expires” at launch unless necessary
Why it works:
Urgency increases redemption rates and drives faster repeat purchases.
5. Use the Loyalty Widget Strategically
The Loyalty Widget is your primary engagement driver.
Recommended Setup:
Enable on both Desktop & Mobile
Position: Bottom Right (high visibility, low obstruction)
Use brand colors for a native look
Customize text to match your tone
Best Practice:
Rewrite generic phrases.
Instead of:
“Join our rewards program”
Try:
“Earn points on every purchase 🎁”
Personalized copy increases conversion.
6. Create a Dedicated Loyalty Page
A Loyalty Page builds trust and explains your program clearly.
Include:
A compelling banner
“How it Works” section
Highlighted Ways to Earn
Featured Rewards
Clear value explanation
Don’t forget:
Add the page to your main or footer navigation
Optimize SEO settings in Shopify
Use keywords like “rewards,” “points,” and “loyalty program”
Best Practice:
Announce your loyalty page via email and social media at launch.
7. Activate the Customer Account Page Integration
This improves retention by embedding loyalty directly into the account area.
Customers can:
View live points balance
See active rewards
Track their loyalty history
Track their loyalty history
Why this matters:
Keeping loyalty inside the account experience increases engagement and perceived professionalism.
8. Monitor & Adjust After Launch
Your launch is only the beginning.
Use the Customers section to:
Identify high-point members
Spot inactive users
Track sign-up growth
Monitor redemption behavior
Key Metrics to Track:
Repeat purchase rate
Average order value
Redemption rate
Points liability
Member vs Guest conversion rate
Best Practice:
Review performance every 30 days and adjust earning ratios or reward values if needed.
9. Promote Your Program Everywhere
A loyalty program only works if customers know about it.
Promote via:
Homepage banners
Checkout messaging
Email campaigns
Post-purchase emails
Social media posts
SMS campaigns
Example launch message:
“We’ve launched Rewards! Earn points on every purchase and redeem for discounts.”
10. Keep It Fresh
Once your program is stable, introduce:
Limited-time bonus campaigns
Double points events
Seasonal rewards
Exclusive VIP perks (for high point earners)
This prevents loyalty fatigue and keeps engagement high.
11. Avoid Common Mistakes
❌ Making rewards too complicated
❌ Offering too many earning rules at launch
❌ Setting unrealistic redemption values
❌ Forgetting to promote the program
❌ Ignoring customer data
Start simple. Optimize with data.
Final Thoughts
A successful loyalty program isn’t just about discounts—it’s about building a relationship.
With Kefi: Loyalty Program Rewards, you’re not just rewarding transactions—you’re rewarding engagement, habits, and brand loyalty.
Start simple, launch confidently, monitor results, and continuously optimize. Over time, your loyalty program can become one of your most powerful growth engines.
Need Help?
Our support team is here to help you succeed with Kefi:
Live Chat: Available directly within the Kefi Loyalty app
Email: wecare@keficommerce.com