Loyalty Reward Types Explained in Rivyo • Loyalty • Rivyo Help Center – Reviews, Loyalty & Referral Program Setup Guides for Shopify

Overview

Rivyo gives you several reward types so you can match rewards to different customer goals, order values, and campaign strategies. Some rewards are best for quick redemptions, while others work better when you want customers to spend more or come back again.

This page explains what each reward type does, when to use it, and how to choose the right points value for your loyalty program.

Reward types can feel similar at first, but they influence customer behavior in different ways. Choosing the right reward matters just as much as choosing the right points cost.

Available reward types

1. Amount discount

An amount discount gives customers a fixed value off their order.

Example: ₹100 OFF for 200 points

Best for: Simple, easy-to-understand rewards
Why customers like it: They know exactly how much they will save
Works well when: You want a straightforward redemption option for most shoppers

Use this reward when you want your loyalty program to feel clear and predictable. Fixed discounts are often the easiest reward for customers to redeem without confusion.

2. Percentage discount

A percentage discount gives customers a percentage off their order total.

Example: 10% OFF for 300 points

Best for: Encouraging larger purchases
Why customers like it: The reward feels more valuable on bigger carts
Works well when: You want to increase average order value

This reward is useful when you want customers to add more items before redeeming. Since the savings grow with the order total, it can encourage higher spending than a flat discount.

3. Free shipping

Free shipping removes the shipping charge from the order.

Best for: Reducing cart abandonment
Why customers like it: Shipping fees are often the final reason customers hesitate at checkout
Works well when: You want to offer an easy, low-friction reward

Free shipping is often one of the most frequently redeemed rewards because it feels immediately useful, even for smaller orders.

4. Free product

A free product reward lets customers redeem points for a specific item.

Best for: Promoting selected products
Why customers like it: They receive something tangible instead of a discount
Works well when: You want to highlight new items, low-cost add-ons, or bestsellers

This reward works especially well for products with strong perceived value, such as samples, accessories, or exclusive items.

5. Customer store credit

Store credit gives customers a balance they can use on future purchases.

Best for: Driving repeat purchases
Why customers like it: It feels flexible and reusable
Works well when: You want to keep customers coming back instead of using a one-time reward only

Store credit can be a strong option if your goal is long-term customer retention rather than a single discounted order.

How to choose the right reward type

The best reward type depends on the outcome you want from your loyalty program.

Choose amount discount if you want the easiest reward for customers to understand.
Choose percentage discount if you want to encourage larger carts.
Choose free shipping if shipping cost is a common reason customers abandon checkout.
Choose free product if you want to promote a specific item or make rewards feel more exciting.
Choose store credit if you want to increase repeat shopping behavior.

Most stores perform best when they offer a mix of rewards: one easy entry-level reward, one high-value reward, and one “quick win” reward such as free shipping.

Set up points spending

When you create a reward, you can decide how customers spend their points to redeem it.

Points spending options

Fixed number of points: Customers redeem the exact points amount you set.
Custom number of points: Customers choose how many points to apply, based on the rules you allow.

Use a fixed points value when you want rewards to stay simple and easy to compare. Use custom points spending when you want customers to have more flexibility during redemption.

Discount method

From your current setup, rewards are applied as a one-time code.

This means each redemption generates a single-use reward code that the customer can apply at checkout.

A one-time code setup helps prevent a reward from being reused beyond the intended redemption.

Additional controls you can configure

Each reward can include rules that control when and how it can be used.

Minimum purchase value: Require a minimum cart total before the reward can be applied.
Expiry: Set an expiration window so rewards must be used within a certain time.
Product applicability: Limit the reward to specific products or collections when needed.
Combination rules: Decide whether the reward can be used together with other offers or discounts.

These controls help you balance customer value with profitability. For example, you can make a percentage discount more sustainable by adding a minimum purchase requirement, or make a free product reward more targeted by limiting it to one specific item.

If reward rules are too restrictive, customers may earn points but feel disappointed when they try to redeem them. Keep restrictions clear and reasonable.

Recommended setup process

Decide what you want the reward to achieve: more conversions, higher order value, repeat purchases, or product promotion.

Use amount discounts for simplicity, percentage discounts for larger carts, free shipping for quick wins, free products for item promotion, and store credit for retention.

Price the reward so it feels attainable, but still reflects meaningful value to your business.

Configure minimum order value, expiry, eligible products, and combination settings if needed.

Make sure customers can see a clear path from small rewards to more valuable rewards as they earn more points.

Best practices

Start with at least one reward that customers can reach quickly.
Offer a mix of low, medium, and high-value rewards.
Keep reward names simple and easy to understand.
Use fixed amount discounts when launching a new program, since they are the easiest to explain.
Use free shipping as an accessible reward for customers who may not have enough points for larger discounts yet.
Use free products strategically to move featured items or create excitement around seasonal campaigns.
Review redemption behavior regularly and adjust points values if a reward is too easy or too hard to reach.

If you are launching your loyalty program for the first time, begin with fewer reward choices. Too many options can make redemption feel harder instead of better.

Example reward strategy

A simple reward ladder gives customers something to redeem early, while also encouraging them to keep earning points for larger rewards.

₹50 OFF → 100 points
Free Shipping → 200 points
₹200 OFF → 500 points

This structure works well because:

The first reward feels reachable for new members
Free shipping gives customers a practical mid-level option
The highest reward creates a stronger reason to continue collecting points

Avoid these common mistakes

Setting every reward too high: Customers may lose motivation if rewards feel out of reach.
Using only one reward type: Different customers respond to different reward styles.
Creating too many restrictions: Rewards should feel usable, not frustrating.
Offering discounts without a strategy: Match each reward to a business goal instead of adding rewards at random.
Ignoring perceived value: A free product can sometimes feel more exciting than a discount of the same cost.

Quick summary

Use reward types intentionally:

Amount discount for clarity and simplicity
Percentage discount for larger orders
Free shipping for easy redemption and cart recovery
Free product for promotion and excitement
Store credit for repeat purchases

The strongest loyalty programs usually combine multiple reward types, use clear points values, and make redemption feel rewarding without being complicated.

Reward Types Explained