Let’s face it, points-based loyalty programs always sound like a winner. Hand out points for every purchase, let people cash them in later, and just like that, you’ve got loyal customers. At least, that’s the idea.
But reality? Not so simple.
Most Shopify stores that roll out a basic points program see a quick jump in activity, but it doesn’t last. Customers lose interest, their points sit untouched, and the loyalty you wanted just fades away.
So, what’s going on? And how do you build a loyalty program that people actually care about?
Let’s dig in.
1. The Problem With Points: They’re Too Abstract
Points aren’t real. Tell someone, “You’ve got 200 points,” and watch their eyes glaze over. Is that ₹200? ₹20? Does it get them free shipping or what? Most shoppers won’t bother to figure it out.
That confusion is a loyalty killer. People are busy, they’re not going to decode your rewards system. If it’s not obvious what they get, they’ll probably ignore it.
What actually works: Give rewards people understand, cashback, store credit, actual coupons they can use right away.
Take the Loyalty Wallet app, for example. Customers see a real currency balance, not just some random number. ₹50 wallet credit feels like cash. Real money, real rewards, people come back for that.
2. Most Programs Reward the Wrong Things
A lot of loyalty programs only reward purchases. Sure, that matters, but you’re missing out. Real fans do more than shop, they refer friends, leave reviews, share your brand, and just generally spread the word.
A strong loyalty program rewards all of that.
So, mix it up:
- Give points or credits for referrals
- Thank people for reviews or social shares
- Surprise them with a little bonus on their birthday
- Win back customers who haven’t ordered in a while with a special offer
When you combine transactional rewards with emotional touches, you build a connection that points alone can’t touch.
Check out:
https://rewards.webplanex.com/why-customers-leave-loyalty-programs-10-reasons.html
3. Confusing Redemption Rules = No Motivation
We’ve all seen it: “Get ₹500 off after you earn 5,000 points.” Someone just spent ₹1,000 and got 50 points, they do the math, realize they’ll never get a reward, and stop caring.
If rewards are too far away or the rules are a mess, people just check out.
What works better: Make it easy to win, fast. Let people use wallet credit or cashback right away on their next order. That instant payoff keeps them coming back.
That’s why cash-based rewards, like the Webplanex Loyalty Wallet, usually beat points. The feedback is quick and clear.
4. Loyalty Is About More Than Just Rewards
This part gets missed a lot: loyalty isn’t just about what people get, it’s about how they feel.
Shoppers want to feel noticed. Points? They don’t exactly make anyone feel special.
A good loyalty program calls customers by name, remembers what they like, and gives them something personalized. Early access to new stuff, exclusive previews, a birthday discount, little touches like that make a big difference.
The Loyalty Wallet app lets you segment your customers and reward each group in a way that fits. Not just lump everyone together in the same points bucket.
5. If Customers Don’t Know About Your Program, It Doesn’t Matter
You can have the best loyalty program in the world, but if nobody knows about it, what’s the point?
Too many stores tuck their program away in a tiny link or hide it at checkout. If shoppers can’t see it, they won’t use it.
Smart brands do this instead:
- Show wallet balances right in the dashboard
- Send reminder emails about available credits
- Push notifications for new rewards
- Highlight loyalty perks during big sales and events
Remind people what they have, and you’ll see more redemptions and repeat business.
6. The “One Size Fits All” Mistake
Every business is different. So is every customer. A skincare shop just doesn’t work the same way as a furniture store, and electronics have their own rhythm, too. Still, a lot of stores stick with the old “get X points for every ₹ you spend” routine, no matter what they sell.
That’s usually a miss. People shop for different things in different ways, depending on what they’re buying, how often they come back, and how much they care about the product.
There’s a better way: use your data to actually shape your rewards.
Let’s say you run a beauty store. Try smaller, more frequent cashbacks or wallet credits, something that keeps people coming back. If you sell big-ticket items like home appliances, focus more on referral bonuses or rewards after the purchase. The Webplanex Loyalty Wallet app makes this easy. You can set up different rewards for different products or even different types of customers, and you don’t need a developer to do it.
7. What to Do Instead: Build a Wallet-Based Loyalty System
If the same old points programs don’t cut it, what should you do?
Go with a wallet-based loyalty system. Give your customers real value they can see and use, not just a pile of points nobody understands.
Why does this work so well?
People get it right away. They always know how much they’ve earned and what it’s worth. They can track their rewards, spend them whenever, and the whole thing feels as easy as using a payment wallet.
You can run all kinds of creative campaigns, instant cashback, bonus credits, without making people do complicated math.
Apps like Loyalty Wallet are built for this. They let Shopify stores reward purchases, referrals, and all kinds of engagement, while keeping everything simple and clear.
8. Real Example: Turning Frustration Into Loyalty
Here’s what happened with a Shopify store we worked with. They had a classic points program: collect 2,000 points, get a ₹100 coupon. Almost nobody cared.
Then they switched to a wallet-style system. Now, shoppers saw wallet cash show up right after checkout. They could use it next time, or even gift it to a friend.
Two months later, repeat orders jumped by over 25%.
The actual reward didn’t change, just the way it was delivered.
9. How to Make Your Loyalty Program Actually Work
Thinking about starting (or fixing) your Shopify loyalty program? Here’s the quick and dirty playbook:
- Keep rewards simple.
- No confusing math.
- Show people what they’re getting.
- Make it personal. Tailor rewards to how and when people shop.
- Make spending rewards easy. Less clicking, more instant joy
- Keep it in front of people. Remind them about their wallet balance with emails or push notifications.
- watch the numbers. Use analytics and see what gets people coming back.
Check out:
https://rewards.webplanex.com/boost-sales-and-loyalty-with-smarter-campaigns.html
Conclusion
A loyalty program only works if people actually care about it. Points sound good, but if customers can’t see their value or figure out how to use them, they just stop paying attention.
That’s why the new wave of loyalty apps goes for simplicity, clarity, and flexibility. They make rewards obvious and easy, and that’s what keeps people coming back. So if your points program isn’t working, don’t blame your customers. The system needs a rethink.
Maybe it’s time to make loyalty feel real again.
