Getting started with Loyalty

Motivate customers to stay active and spend more with a tiered rewards system. As they unlock higher tiers, they gain better benefits, helping you boost repeat purchases, increase retention, and grow lifetime value.

Learn how to set up your Tiers and Rewards program in our guide here.

Key benefits of Tiers and Rewards

• Drives repeat purchases: Customers are motivated to stay active to maintain or reach higher tiers.

• Increases customer lifetime value (LTV): Higher tiers unlock better benefits, encouraging more spending over time.

• Improves retention: Tier expiration and requalification windows give customers a reason to stay engaged.

• Creates emotional loyalty: Recognition and exclusive perks help customers feel valued and connected to your brand.

• Encourages goal-driven behavior: Customers work toward visible milestones, making the experience feel rewarding and gamified.

• Offers flexible segmentation: Tiers help you identify and target high-value customers with tailored offers or messaging.

Tiers and Rewards Example

• A supplements brand creates a tiered loyalty program to reward consistent health routines. All customers start in the “Core” tier, earning 100 points per dollar spent.

• When a customer spends $200 within a 6-month window, they move up to the “Elevate” tier, unlocking 1.5x points and early access to new product drops.

• At $500, they reach the “Peak” tier, where they earn 2x points, receive quarterly gift boxes, and an additional 10% off all subscription purchases.

This structure reinforces healthy habits, encourages subscription upgrades, and builds long-term brand loyalty.

Drive engagement and loyalty by rewarding customers with credits for every purchase or brand interaction. Redeemable credits make your subscription experience more rewarding and more likely to stick.

Learn how to set up Credits in our guide here.

Key benefits of Credits

• Drives repeat purchases: Customers return to redeem credits, increasing order frequency.

• Boosts average order value (AOV): Customers often add more to their cart to maximize credit usage.

• Encourages subscription retention: Offer recurring credits as a subscriber perk to reinforce value.

• Offers flexible promotions: Use credits instead of discounts to preserve brand pricing and margin.

• Increases engagement: Reward non-purchase actions like reviews, referrals, or email signups.

• Improves customer satisfaction: Credits feel like rewards, not coupons, strengthening loyalty.

• Supports churn prevention: Use expiring or bonus credits to re-engage lapsed or at-risk customers.

Credits Example

A supplements brand launches a credits system to reward consistent purchasing habits. Customers earn $1 in store credit for every $20 spent, which can be redeemed on future orders. The credits are automatically applied at checkout, making it easy for customers to see the value of returning. The brand also awards bonus credits on their birthday, for writing product reviews, or signing up for their newsletter.

This approach encourages repeat purchases, boosts subscription adoption, and turns loyalty into tangible savings. It’s also an opportunity to motivate customers to increase the touchpoints with your brand, leading to stickier customers.

Implement a referral program to incentivize customers to refer their friends. Set up rewards for both referrers and new customers to drive acquisition and growth.

Learn how to set up Referrals in our guide here.

Key benefits of Referrals

• Drives low-cost customer acquisition: Turn your best customers into a reliable growth channel by incentivizing them to share your brand.
  Increases trust and conversion rates: Referred customers are more likely to convert and stay loyal, thanks to the built-in trust of a personal recommendation.

• Boosts customer lifetime value (LTV): Referred customers often spend more and stay longer compared to other channels.
  Strengthens brand loyalty: Rewarding advocates reinforces their connection to your brand and gives them a reason to keep engaging.

• Supports segmentation and targeting: Track referrers and offer exclusive perks or tiers based on their impact.

Referrals Example

A supplements brand starts a referral program to bring in new customers. Customers get a unique link to share with friends. When someone uses the link, the friend gets $10 off their first order, and the referrer earns $10 in store credit. The brand highlights the program in emails and on customer account pages to make sharing easy.

Set up referrals

• Navigate to referrals settings: In the lefthand menu of your Skio Dashboard, go to Loyalty > Referrals

• Define your referral reward structure (discount type, amount, minimum requirements)

• Configure advocate rewards (what referrers receive)

• Configure friend rewards (what new customers receive)

• Set referral link format and customize sharing options

• Test referral link generation and reward application

Related guide: How to set up referral rewards

Configure reward tiers

• Navigate to tiers settings: In the lefthand menu of your Skio Dashboard, go to Loyalty > Tiers

• Define tier qualification criteria (subscription count, total spend, or subscription duration)

• Name each tier and set threshold values

• Assign benefits to each tier (discounts, exclusive access, free shipping)

• Configure tier upgrade and downgrade logic

• Test tier assignment with sample customer profiles

Related guide: How to create and manage loyalty tiers

Set up loyalty credits

• Navigate to credits settings: In the lefthand menu of your Skio Dashboard, go to Loyalty > Credits

• Define how customers earn credits (per order, subscription milestone, engagement actions)

• Set credit value and redemption rules

• Configure credit expiration policies (if applicable)

• Set minimum and maximum redemption amounts

• Test credit earning and redemption flows

Related guide: How to configure loyalty credits

• Create test customer accounts at different subscription levels

• Verify referral links generate correctly and apply rewards

• Confirm tier assignments update based on customer actions

• Test credit earning, balance tracking, and redemption

• Review customer portal display of loyalty information

• Check that loyalty data appears correctly in analytics

Create announcement content

• Draft email announcement explaining your new loyalty program

• Create on-site messaging (banners, pop-ups, or landing pages)

• Prepare social media posts highlighting program benefits

• Update your FAQ or help center with loyalty program details

• Create visual assets (graphics, icons, or badges for tiers)

Update customer touchpoints

• Add loyalty program information to your welcome series

• Update subscription confirmation emails to mention rewards

• Add loyalty callouts to your customer portal

• Include loyalty benefits in product pages or checkout flow

• Create a dedicated loyalty program landing page

Plan your messaging strategy

• Segment customers by subscription status or tier eligibility

• Schedule announcement emails to current subscribers

• Plan follow-up reminders for customers to refer friends or redeem credits

• Set up automated emails for tier upgrades or milestone achievements

• Create templates for personalized loyalty communications

• Enable your loyalty program in the Skio Dashboard

• Send initial announcement to all active subscribers

• Monitor early adoption and engagement rates

• Track referral conversions, tier distribution, and credit redemptions

• Review analytics to identify top-performing loyalty features

• Gather customer feedback and iterate on program structure