Order Discount Rewards

Overview

Order Discount Rewards allow customers to redeem loyalty points for discount codes that apply to their entire order. These discounts can be fixed amounts or percentages and support various customization options including subscription handling, minimum requirements, and customer eligibility.

When a customer claims an order discount reward, the app generates a unique Shopify discount code that they can apply at checkout.

Restricted Rewards

Order discounts can be created as restricted rewards for internal features like Referrals. Restricted rewards are:

• Not visible to customers in the public rewards catalog
• Have no points cost associated with them
• Claimed automatically by features (e.g., when a friend claims a referral offer)

To create a restricted reward, select the "Create Restricted Reward" option when creating an order discount.

Discount Types

Fixed Value Discount

A specific dollar amount deducted from the order total.

Example: $10 off any order

Order Subtotal: $50.00
Discount: -$10.00
New Total: $40.00

Percentage Discount

A percentage deducted from the order total.

Example: 15% off any order

Order Subtotal: $50.00
Discount: -$7.50 (15%)
New Total: $42.50

Payment Type Options

One-Time Payments Only

Discount applies exclusively to one-time purchases, excluding subscription orders.

Use Case: Reward occasional shoppers without affecting subscription economics.

Subscriptions Only

Discount applies exclusively to subscription orders.

Subscription Application Options:

Option	Description	Example
First Payment Only	Discount applies to the initial subscription payment	$10 off first subscription box
Multiple Recurring Payments	Discount applies to a specified number of payments	20% off first 3 monthly payments
All Recurring Payments	Discount applies to every payment for the subscription duration	$5 off every subscription delivery

Use Case: Incentivize subscription signups or reward loyal subscribers.

Both

Discount applies to both one-time purchases and subscriptions.

Flexibility: When both are selected, you can configure different subscription behaviors as described above.

Minimum Requirements

Set conditions that must be met for the discount to apply:

Minimum Order Value

Require a minimum subtotal before the discount can be used.

Configuration:

• Set minimum amount (e.g., $50)
• Discount won't apply if order subtotal is below this threshold

Example: "Spend $50 or more to use this discount"

Minimum Order Item Quantity

Require a minimum number of items in the cart.

Configuration:

• Set minimum quantity (e.g., 3 items)
• Discount won't apply if cart contains fewer items

Example: "Add 3 or more items to use this discount"

None

No minimum requirements - discount can be applied to any qualifying order.

Best Practice

Setting minimum requirements helps protect your margins while still rewarding customers. Consider your average order value when setting minimums.

Customer Eligibility

Control who can see and claim this reward:

All Customers

The reward is visible and claimable by any customer in your loyalty program.

Use Case: General promotion for all loyalty members.

Specific Customers

Select individual customers who can access this reward.

Configuration:

• Search for customers by name or email
• Add multiple customers individually
• Only selected customers see the reward

Use Case: VIP rewards, service recovery, personalized offers.

Specific Customer Segment

Target customer segments created in Shopify.

Configuration:

• Select from Shopify customer segments
• Segments are created and managed in Shopify admin
• Use Shopify's segmentation tools to define criteria

Common Segment Examples:

• Customers who spent over $500 lifetime
• Customers with 5+ orders
• VIP tier customers
• Customers who haven't purchased in 90 days

Use Case: Tier-specific rewards, targeted campaigns, re-engagement offers.

Shopify Customer Segments

Customer segments are created in Shopify admin > Customers > Segments. Learn more in Shopify's customer segmentation documentation.

Maximum Usage Limits

Customers can claim this reward multiple times. These settings control how many times each claimed discount code can be used and how many times the reward can be claimed overall.

Uses Per Discount Code

Default: 1 use per code

Control how many times each claimed discount code can be used before it's depleted:

Setting	Behavior
1 (Default)	Each discount code can be used once
Custom Number	Each discount code can be used N times

Important: After a discount code is fully used, the customer can claim the reward again (if they have enough points) to receive a new discount code.

Example:

Reward: $10 Off Order (500 points)
Uses per code: 1

Customer Journey:
1. Customer claims reward → receives code ABC123 (500 points deducted)
2. Customer uses code ABC123 on Order #1 → code depleted
3. Customer claims reward again → receives code DEF456 (500 points deducted)
4. Customer uses code DEF456 on Order #2 → code depleted

Discount Combinations

Control whether this discount can be stacked with other discounts at checkout.

Combinable With

Combination	Description
Order Discounts	Can stack with other order-level discounts
Product Discounts	Can stack with product-specific discounts
Shipping Discounts	Can stack with free shipping or shipping discounts

Shopify Combination Rules

Shopify has specific rules about discount stacking:

• Only one automatic discount can apply per order
• Discount codes can combine based on your settings
• Product discounts apply before order discounts

Default Behavior: If you don't select any combinations, only this discount will apply.

Setup Process

Step 1: Navigate to Coupon Rewards

1. Open Keystone Loyalty Rewards app
2. Navigate to Loyalty Program > Reward types > Coupon Rewards
3. Click Create Discount
4. Select Order Discount

Step 2: Configure Basic Settings

Field	Description
Reward Name	Name customers see (e.g., "$10 Off Your Order")
Points Required	Points cost to claim this reward
Discount Type	Fixed value or percentage
Discount Value	Amount or percentage off

Step 3: Set Payment Type

Choose one:

• One-time payments only
• Subscriptions only (configure subscription behavior)
• Both

If subscriptions are included, select:

• First payment only
• Multiple recurring payments (specify number)
• All recurring payments

Step 4: Define Minimum Requirements

Choose one:

• Minimum order value (enter amount)
• Minimum order item quantity (enter number)
• None

Step 5: Set Customer Eligibility

Choose one:

• All customers
• Specific customers (search and select)
• Specific customer segment (choose segment)

Step 6: Configure Usage Limits

Set:

• Maximum uses per discount code (default: 1)

Step 7: Select Discount Combinations

Enable combinations with:

• Other order discounts
• Product discounts
• Shipping discounts

Step 8: Review and Save

1. Review all settings
2. Click Save Reward
3. The reward is now available for customers to claim

How Customers Claim and Use

Claiming the Reward

1. Customer views available rewards in the loyalty widget or account
2. Customer has sufficient points (500 points required)
3. Customer clicks "Claim Reward"
4. Points are deducted from their balance
5. Unique discount code is generated

Using the Discount Code

1. Customer receives their unique discount code
2. Customer adds items to cart meeting minimum requirements
3. At checkout, customer enters the discount code
4. System validates:
   • Minimum requirements met
   • Customer eligibility
   • Code not expired or already used
5. Discount is applied to the order

Code Display

Customers can view their claimed codes:

• In the loyalty widget
• In the reward claim confirmation

Refunds and Reversals

Automatic Refunds

Points are automatically refunded to customers in these scenarios:

Scenario	Refund Behavior
Discount code deleted	Full point refund if unused
Reward deleted	Full point refund for all unused codes

Manual Refunds

Customers and merchants can manually refund claimed discount codes to return points.

Customer-Initiated Refunds

Customers can refund their claimed discount codes through the loyalty widget or their account:

Eligibility:

• Discount code has not been fully redeemed (uses remaining)
• Customer has the discount code in their account

Process:

1. Customer views their claimed rewards
2. Customer selects the discount code to refund
3. Customer confirms refund
4. Points are returned to customer's balance
5. Discount code is deactivated/deleted

Refund Amount:

Code Status	Points Refunded
Unused (0 uses)	Full points refunded
Partially used	Points refunded proportionally based on remaining uses
Fully used	Cannot be refunded

Example:

Reward: $10 Off Order (500 points)
Uses per code: 3 uses
Code status: Used 1 time, 2 uses remaining

Refund calculation:
Remaining uses: 2 out of 3 (66.67%)
Points refunded: 500 × (2/3) = 333 points

Merchant-Initiated Refunds

Merchants can refund discount codes on behalf of customers:

Use Cases:

• Customer service requests
• Technical issues preventing use
• Customer unable to use discount due to product availability
• Goodwill gestures

Process:

1. Navigate to Loyalty Program > Customers
2. Select the customer
3. View their claimed rewards/transactions
4. Select the discount code to refund
5. Confirm refund
6. Points are returned to customer's balance
7. Discount code is deactivated/deleted

Same refund calculation applies: Full refund for unused codes, proportional refund for partially used codes.

Best Practice

Communicate with customers about refunds. If a merchant refunds a code, consider sending a notification explaining why points were returned.

Shopify Synchronization

Discount Creation

When a customer claims an order discount reward:

1. App creates discount code in Shopify admin
2. Discount inherits all configured settings
3. Code is linked to customer and transaction
4. Code is immediately usable at checkout

Viewing in Shopify admin

To view app-generated discounts:

1. Go to Shopify admin > Discounts
2. Filter by discount type or search
3. App-generated codes include reference to loyalty program
4. Click discount to view details and usage

Use Cases

1. Welcome Reward

Configuration:

• Discount: $5 off
• Points: 200 points
• Minimum: None
• Eligibility: All customers
• Max uses per customer: 1

Goal: Give new loyalty members an easy first reward to build engagement.

2. High-Value Order Incentive

Configuration:

• Discount: 15% off
• Points: 1,000 points
• Minimum: $100 order value
• Eligibility: All customers
• Combinations: None

Goal: Encourage larger purchases from engaged loyalty members.

3. Subscription Acquisition

Configuration:

• Discount: $20 off
• Points: 800 points
• Payment type: Subscriptions only (first payment)
• Minimum: None
• Eligibility: All customers

Goal: Incentivize subscription signups by offsetting first payment.

4. VIP Tier Reward

Configuration:

• Discount: 25% off
• Points: 1,500 points
• Minimum: None
• Eligibility: Gold tier customers
• Max uses per customer: 2

Goal: Provide exclusive rewards to top-tier customers.

5. In-Store Redemption

Configuration:

• Discount: $10 off
• Points: 500 points
• Minimum: $50 order value
• Eligibility: All customers

Goal: Drive repeat purchases with accessible rewards.

Best Practices

1. Balance Point Cost and Value

Maintain a healthy points-to-dollar ratio:

Common Ratios:

• 100 points = $1 discount value
• Makes math easy for customers
• Aligns with typical earning rates

2. Set Strategic Minimums

Use minimum requirements to protect margins:

Guidelines:

• Set minimum at or above average order value
• Higher discounts should have higher minimums
• Test and adjust based on redemption data

3. Use Combinations Wisely

Consider allowing combinations to enhance customer satisfaction:

Recommendations:

• Allow order + shipping for premium experience
• Restrict order + order to prevent over-discounting
• Product + order combinations can drive discovery

4. Monitor Redemption Rates

Track how often rewards are claimed and used:

Healthy Metrics:

• 30-50% claim rate (customers have enough points)
• 80%+ usage rate (customers use claimed codes)
• Low expiration rate (customers find value)

Related Features

• Product Discount Rewards - Discounts for specific products
• Free Shipping Rewards - Free shipping discount codes
• Gift Card Rewards - Gift card generation
• Customer Tiers - Segment-based eligibility
• Transactions - View reward claims and usage

Summary

Order Discount Rewards provide flexible, powerful tools to reward your loyal customers with discounts on their purchases. With support for subscriptions, minimum requirements, and customer targeting, you can create precisely tailored rewards that drive engagement while protecting your margins.

The automatic Shopify sync ensures seamless redemption, and the built-in verification process guarantees customers always receive functioning discount codes.