Subscriptions create recurring revenue, but that doesn't automatically make customers loyal. Loyalty points give them an extra reason to stay: they build something up with every delivery. If the loyalty programme of your shop and your subscriptions run separately, you miss that opportunity. Link them, and you can reward behaviour that directly affects your revenue.
Points on subscription orders
The starting point is simple: a paid subscription order earns points, just like a regular purchase, at the same number of points per euro. In Loyalo one toggle decides whether subscription orders count. If subscribers already get a solid discount on their subscription, you can choose to let them earn on one-off purchases only.
- Award points on every successful charge, not when the subscription is created
- Decide deliberately whether subscription orders count: subscribers often have a discount already
- Account for varying order sizes when frequency changes
- Make sure the point balance is visible right after the order, in the customer portal and in emails
Tiers: rewarding those who stay
Besides points per order, you can use tiers: levels a customer reaches based on amount spent, number of orders or points. A subscriber grows towards them automatically, because every delivery counts. That works well at the moment customers are most likely to cancel. The first few deliveries are often the most uncertain for a subscriber: is the product worth it, does it fit the chosen rhythm. A tier with a discount or free shipping that comes within reach at that point gives a nudge to continue.
- Identify the risk momentLook at your churn data and determine after which delivery customers most often cancel.
- Put a tier at that momentChoose the threshold, for example three orders, so that a subscriber reaches the tier just before or at that moment.
- Show what is comingShow customers in the portal and in the shop how much they still need for the next tier, so it motivates them.
- Measure the effectTrack whether churn around that moment actually decreases and adjust the threshold if needed.
Redeeming as a Shopify discount
Points only have value when redeeming is simple. In Loyalo, a redemption is applied as a regular Shopify discount, including on subscription orders. That means you don't need separate discount logic for subscribers: the same discount engine you already use for one-off orders also processes point redemption. Customers redeem points through the customer portal. A subscriber can have the reward applied to their next delivery right away; otherwise they get a discount code for their next order.
| Element | Why it matters |
|---|---|
| Redeem as a discount | With a subscription the reward goes along with the next delivery, without a separate code |
| Visible point balance | Customers see immediately what they can redeem, including on subscriptions |
| Logged history | Every redemption can be traced per customer for support and analysis |
| Works on recurring orders | Discount is also applied on automatic charges, not just checkout |
Worked example: what does a point cost?
Say a customer gets 2 points per euro spent and 500 points give € 5 off. For 500 points they have to spend € 250, so you give back 2% of revenue. On a subscription of € 25 per month a subscriber has that reward after ten deliveries. Put that percentage next to your margin per delivery: at a 40% margin, 2% is easy to carry; at a 10% margin it is a fifth of what you earn. The numbers are an example; the sum is the same for every programme.
Bonus points that suit subscribers
Points per euro reward spending. Bonus points reward behaviour you want to see more of. For subscribers these are the moments that pay off most:
- Creating an account: the first points are there right away, so earning feels started
- Writing a review after the second or third delivery, when the customer knows the product
- Referring a friend: the friend gets a discount, the subscriber points once the order is final
- A campaign period with double points, in a quiet month for example
- Extra points on one product, such as a new flavour you want people to try
Pitfalls to avoid
Linking a points programme to subscriptions sounds simple, but a few choices can make the programme expensive or confusing. Two come up most often.
If the redemption value of points exceeds the margin a subscription generates, you lose money on every redemption. Calculate point value based on your margin per delivery, not just on revenue.
Never award points before a charge has succeeded. When a failed payment later succeeds through a retry, point allocation must be tied to the moment of payment, not the moment of ordering.
- Set point value based on margin, not revenue
- Only award points after a successful charge
- Prevent double point allocation on a retry after a failed payment
- Keep the benefits per tier affordable: calculate them against your margin
- Test redemption on a subscription order before going live
Frequently asked questions
Do customers get points if a charge fails?
No, points are only awarded after a successful payment. If a retry later succeeds, points are awarded at that moment.
Do subscription orders count for points?
Yes, if you switch that on. Subscription orders then earn the same number of points per euro as one-off orders.
How does a customer redeem points on a subscription?
In the customer portal the customer picks a reward. It is applied as a discount to their next delivery, or they get a discount code for a one-off order.
Can I reward subscribers for how long they stay?
Yes, with tiers based on number of orders or amount spent. Every delivery counts, so those who stay move up to a higher tier with a discount or free shipping.
Can points expire?
Yes, if you set that. You choose after how many months points expire, or that they never do. The oldest points are used first, and customers get an email before points expire.
What happens to points when an order is refunded?
The points for that order are taken back proportionally. With a partial refund that is part of the points.
Does a tier discount also apply to subscription products?
Not by default, because a subscription usually has its own discount already. In Loyalo you switch on at the tiers that the tier discount also applies to subscription products.
Want to combine loyalty and subscriptions?
In a demo we show how points, tiers and redemption work on your subscriptions.
Request a demo