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Product Discount Rewards ​

Overview ​

Product Discount Rewards allow customers to redeem loyalty points for discount codes that apply to specific products or entire collections. These discounts can be fixed amounts or percentages and support subscription handling, minimum requirements, and customer targeting.

Unlike order discounts that apply to the entire cart, product discounts apply only to designated items, making them ideal for promoting specific products or collections.

Restricted Rewards

Product 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 a product discount.

Discount Types ​

Fixed Value Discount ​

A specific dollar amount deducted from qualifying products.

Example: $15 off any premium product

Product Price: $50.00
Discount: -$15.00
Product Total: $35.00

Note: If multiple qualifying products are in the cart, the discount applies to each item up to quantity limits.

Percentage Discount ​

A percentage deducted from qualifying products.

Example: 20% off collection items

Product Price: $50.00
Discount: -$10.00 (20%)
Product Total: $40.00

Product Selection ​

Specific Products ​

Target individual products for discounts.

Configuration:

  • Search for products by name or SKU
  • Select multiple products
  • Each selected product qualifies for the discount

Use Case: Promote bestsellers, clear overstock, feature new arrivals.

Example: "20% off Premium T-Shirt, Deluxe Hoodie, or Classic Cap"

Collections ​

Apply discount to all products within a collection.

Configuration:

  • Select one or multiple collections
  • All current and future products in the collection qualify
  • Collections managed in Shopify admin

Use Case: Seasonal promotions, category discounts, brand partnerships.

Example: "15% off all Winter Collection items"

Mixed Selection ​

Combine both product and collection selections:

Example Configuration:

  • Products: Limited Edition Jacket, Exclusive Sneakers
  • Collections: Summer Sale, New Arrivals
  • Result: Discount applies to 2 specific products plus all items in 2 collections

Dynamic Collections

When using collection-based discounts, new products added to the collection automatically become eligible. This keeps your rewards current without manual updates.

Payment Type Options ​

One-Time Payments Only ​

Discount applies exclusively to one-time purchases of qualifying products.

Use Case: Promote one-time product purchases without affecting subscription revenue.

Subscriptions Only ​

Discount applies exclusively to qualifying products purchased as subscriptions.

Subscription Application Options:

OptionDescriptionExample
First Payment OnlyDiscount applies to the initial subscription payment$10 off first subscription box
Multiple Recurring PaymentsDiscount applies to a specified number of payments20% off first 3 deliveries
All Recurring PaymentsDiscount applies to every payment for the subscription duration15% off every monthly delivery

Use Case: Incentivize subscription signups for specific products or collections.

Both ​

Discount applies to qualifying products whether purchased one-time or as subscription.

Flexibility: Configure different subscription behaviors when both are selected.

Minimum Requirements ​

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

Minimum Purchase Value ​

Require a minimum total value of qualifying products.

Configuration:

  • Set minimum amount (e.g., $40)
  • Only qualifying products count toward minimum
  • Discount won't apply if qualifying products total less than threshold

Example: "Spend $40 or more on Summer Collection items to use this discount"

Calculation:

Qualifying Product A: $25.00
Qualifying Product B: $20.00
Non-Qualifying Product: $30.00
───────────────────────────────
Qualifying Total: $45.00 ✓ Meets $40 minimum
Discount applies to Products A and B only

Minimum Item Quantity ​

Require a minimum quantity of qualifying products.

Configuration:

  • Set minimum quantity (e.g., 2 items)
  • Only qualifying products count toward quantity
  • Discount won't apply if cart contains fewer qualifying items

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

None ​

No minimum requirements - discount applies to any quantity or value of qualifying products.

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 product 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: Personalized offers, beta testers for new products, VIP early access.

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 product access, targeted collection promotions, 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:

SettingBehavior
1 (Default)Each discount code can be used once
Custom NumberEach 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: 20% Off Collection (750 points)
Uses per code: 1

Customer Journey:
1. Customer claims reward → receives code ABC123 (750 points deducted)
2. Customer uses code ABC123 on Order #1 → code depleted
3. Customer claims reward again → receives code DEF456 (750 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 ​

CombinationDescription
Order DiscountsCan stack with order-level discounts
Product DiscountsCan stack with other product-specific discounts
Shipping DiscountsCan stack with free shipping or shipping discounts

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 Product Discount

Step 2: Configure Basic Settings ​

FieldDescription
Reward NameName customers see (e.g., "20% Off Winter Items")
Points RequiredPoints cost to claim this reward
Discount TypeFixed value or percentage
Discount ValueAmount or percentage off

Step 3: Select Products and Collections ​

Choose one or both:

  • Products: Search and select specific products
  • Collections: Select one or multiple collections

Step 4: 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 5: Define Minimum Requirements ​

Choose one:

  • Minimum purchase value of qualifying products (enter amount)
  • Minimum item quantity of qualifying products (enter number)
  • None

Step 6: Set Customer Eligibility ​

Choose one:

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

Step 7: Configure Usage Limits ​

Set:

  • Maximum uses per discount code (default: 1)

Step 8: Select Discount Combinations ​

Enable combinations with:

  • Other order discounts
  • Other product discounts
  • Shipping discounts

Step 9: Review and Save ​

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

How Customers Claim and Use ​

Claiming the Reward ​

  1. Customer views available rewards
  2. Customer sees which products or collections qualify
  3. Customer has sufficient points
  4. Customer clicks "Claim Reward"
  5. Points are deducted from their balance
  6. Unique discount code is generated

Using the Discount Code ​

  1. Customer adds qualifying products to cart
  2. Customer adds enough qualifying items to meet minimum requirements
  3. At checkout, customer enters the discount code
  4. System validates:
    • Products in cart match reward configuration
    • Minimum requirements met
    • Customer eligibility
  5. Discount applies only to qualifying products

Discount Application Example ​

Cart Contents:

  • Qualifying Product A: $50.00
  • Qualifying Product B: $40.00
  • Non-Qualifying Product: $30.00
  • Subtotal: $120.00

Discount Code: 20% off qualifying products

Calculation:

Qualifying Product A: $50.00 - $10.00 (20%) = $40.00
Qualifying Product B: $40.00 - $8.00 (20%) = $32.00
Non-Qualifying Product: $30.00 (no discount)
────────────────────────────────────────────
New Subtotal: $102.00
Savings: $18.00

Refunds and Reversals ​

Automatic Refunds ​

Points are automatically refunded to customers in these scenarios:

ScenarioRefund Behavior
Discount code deletedFull point refund if unused
Reward deletedFull point refund for all unused codes
Product removed from selectionCode remains valid for other selected products
Collection deletedFull point refund if collection was only qualifier

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 StatusPoints Refunded
Unused (0 uses)Full points refunded
Partially usedPoints refunded proportionally based on remaining uses
Fully usedCannot be refunded

Example:

Reward: 20% Off Collection (750 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: 750 × (2/3) = 500 points

Merchant-Initiated Refunds ​

Merchants can refund discount codes on behalf of customers:

Use Cases:

  • Customer service requests
  • Technical issues preventing use
  • Product out of stock or discontinued
  • 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.

Product Availability ​

If a qualifying product becomes unavailable:

  • Code remains valid
  • Discount applies to other qualifying products
  • Customer can still use code when product restocks

Shopify Synchronization ​

Discount Creation ​

When a customer claims a product discount reward:

  1. App creates discount code in Shopify admin
  2. Discount configured with product/collection targeting
  3. Code is linked to customer and transaction
  4. Code is immediately usable at checkout

Use Cases ​

1. New Product Launch ​

Configuration:

  • Discount: 25% off
  • Points: 800 points
  • Products: New Collection items
  • Minimum: None
  • Eligibility: All customers
  • Total limit: 100 uses

Goal: Drive early adoption of new products through loyalty program.

2. Overstock Clearance ​

Configuration:

  • Discount: $20 off
  • Points: 600 points
  • Products: Specific overstock items
  • Minimum: None
  • Eligibility: All customers
  • Combinations: Can stack with order discounts

Goal: Clear excess inventory while rewarding loyal customers.

3. Collection Promotion ​

Configuration:

  • Discount: 15% off
  • Points: 500 points
  • Collections: Summer Sale
  • Minimum: $50 in qualifying products
  • Eligibility: All customers

Goal: Promote entire collection with built-in minimum to protect margins.

4. Subscription Product Discount ​

Configuration:

  • Discount: $10 off
  • Points: 400 points
  • Products: Subscription Coffee Box
  • Payment type: Subscriptions only (first 3 payments)
  • Eligibility: All customers

Goal: Incentivize subscription signups for specific products.

5. Tier-Exclusive Product Access ​

Configuration:

  • Discount: 30% off
  • Points: 1,200 points
  • Products: Premium Collection
  • Eligibility: Gold tier customers only
  • Max uses: 2 per customer

Goal: Provide exclusive product discounts to top-tier customers.

Best Practices ​

1. Choose Products Strategically ​

Select products that align with business goals:

Good Candidates:

  • High-margin products (more discount flexibility)
  • New launches (drive awareness)
  • Complementary products (increase basket size)
  • Subscription products (recurring revenue)

Avoid:

  • Already heavily discounted products
  • Very low-margin items
  • Products with supply constraints

2. Use Collections for Scale ​

Collections provide flexibility and reduce maintenance:

Benefits:

  • Automatic updates when products are added
  • Easier management than individual products
  • Seasonal rotation without reward changes
  • Consistent brand messaging

3. Set Strategic Minimums ​

Use minimums to encourage larger purchases:

Guidelines:

  • Set minimum value at 2-3x average product price
  • Use quantity minimums to drive multiple product purchases
  • Higher discounts warrant higher minimums

4. Communicate Clearly ​

Help customers understand what qualifies:

Best Practices:

  • List specific products in reward description
  • Link to collections so customers can browse
  • Show example products in reward images
  • Clarify any exclusions

5. Monitor Product Performance ​

Track which products are redeemed most:

Key Metrics:

  • Redemption rate by product
  • Attach rate (other products purchased alongside)
  • Customer feedback on product selection
  • ROI per product discount

Summary ​

Product Discount Rewards provide precise control over which products receive discounts, making them ideal for targeted promotions, new launches, and inventory management. With support for both individual products and collections, subscription handling, and flexible minimum requirements, you can create rewards that drive specific purchasing behaviors while maintaining healthy margins.

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