Gift Card Rewards

Overview

Gift Card Rewards allow customers to redeem loyalty points for Shopify gift cards of a specified value. When a customer claims this reward, the app automatically generates a gift card and sends it to the customer, providing flexible spending power for future purchases.

Gift cards provide maximum flexibility for customers while maintaining value for your business, as they encourage future purchases and can often lead to customers spending more than the gift card value.

Restricted Rewards

Gift card rewards 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 gift card reward.

How It Works

When a customer claims a gift card reward:

1. Customer redeems points for the gift card
2. App creates a Shopify gift card with specified value
3. Gift card is issued to the customer's email
4. Customer receives unique gift card code
5. Customer can use gift card code on future purchases

Key Benefit: Unlike discount codes that have restrictions, gift cards act as store credit with maximum flexibility.

Gift Card Configuration

Gift Card Value

Set the monetary value of the gift card customers receive.

Common Values:

• $5, $10, $25, $50, $100

Strategic Considerations:

Value	Point Cost (Example)	Use Case
$5	500 points	Entry-level reward, frequent redemption
$10	1,000 points	Popular mid-tier reward
$25	2,500 points	Drives higher point accumulation
$50	5,000 points	Premium reward, encourages sustained engagement
$100	10,000 points	VIP tier, maximum flexibility

Multiple Reward Strategy:

Create multiple gift card rewards at different values:

Gift Card Rewards:
├─ $5 Gift Card (500 points)
├─ $10 Gift Card (1,000 points)
├─ $25 Gift Card (2,500 points)
└─ $50 Gift Card (5,000 points)

Benefits:

• Customers choose reward that fits their point balance
• Encourages point accumulation for higher values
• Provides redemption options for all engagement levels

Point Cost

Set how many loyalty points customers must spend to claim this gift card.

Recommended Ratio:

Maintain consistent value with your points-per-dollar earning rate:

If customers earn: 10 points per $1 spent
Gift card ratio: 100 points = $1 gift card value

Examples:
$10 gift card = 1,000 points
$25 gift card = 2,500 points
$50 gift card = 5,000 points

Margin Factor:

Consider adding a margin factor to protect profitability:

Standard ratio: 100 points = $1
With 1.25x margin: 125 points = $1

$10 gift card = 1,250 points
$25 gift card = 3,125 points

Consistency

Keep your gift card point cost consistent with other rewards to maintain perceived fairness and value across your loyalty program.

Customer Eligibility

Control who can see and claim gift card rewards:

All Customers

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

Use Case: Universal reward option for all members.

Benefits:

• Simple, straightforward program
• Maximum accessibility
• Consistent value proposition

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, service recovery, VIP perks.

Example Scenarios:

• Compensate customer for negative experience
• Reward brand ambassador or influencer
• Thank long-term loyal customer

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.

Example Strategy:

Bronze Tier: $5 and $10 gift cards
Silver Tier: $5, $10, and $25 gift cards
Gold Tier: All gift cards including $50 and $100

Maximum Usage Limits

Gift Card Claim Restriction

Customers cannot claim a gift card reward again until they have fully redeemed their previously claimed gift card from the same reward. Once the gift card balance reaches $0, they can claim the reward again (if they have enough points).

Gift Card Claim Restriction

Customers must fully use a claimed gift card before they can claim the same gift card reward again.

How It Works:

1. Customer claims $25 gift card reward (2,500 points deducted)
2. Customer receives gift card with $25 balance
3. Customer cannot claim the same gift card reward again until the $25 balance is fully used
4. Once the gift card balance reaches $0, customer can claim the reward again (if they have enough points)

Example Scenario:

Step 1: Customer claims $25 Gift Card
- Points deducted: 2,500 points
- Gift card balance: $25.00
- Can claim again? No

Step 2: Customer uses $15 on an order
- Gift card balance: $10.00 remaining
- Can claim again? No (balance still exists)

Step 3: Customer uses remaining $10 on another order
- Gift card balance: $0.00
- Can claim again? Yes (once they have 2,500 points)

Step 4: Customer claims $25 Gift Card again
- Points deducted: 2,500 points
- Gift card balance: $25.00
- Can claim again? No

Purpose:

• Prevents customers from accumulating multiple gift cards from the same reward
• Encourages customers to use their gift cards before claiming more
• Simplifies gift card management

Multiple Reward Options

If you want to allow customers to claim gift cards more frequently, create multiple gift card rewards at different values (e.g., $10, $25, $50). Each reward is tracked separately, so customers can claim different value gift cards even if they have an unused gift card from another reward.

Using Gift Cards

Automatic Email Delivery

When a customer claims a gift card reward:

1. Shopify generates the gift card
2. Gift card code is created
3. Email is automatically sent to customer's registered email
4. Email contains:
   • Gift card code
   • Gift card balance
   • Instructions for use
   • Link to your store

Email Customization

Customize the gift card email through Shopify:

Navigation: Shopify admin > Settings > Notifications > Gift card created

Customizable Elements:

• Email subject line
• Header branding
• Message body
• Color scheme
• Footer information

Branding Consistency

Customize your gift card email template to match your loyalty program branding for a cohesive customer experience.

Customer Viewing

Customers can view their gift cards in multiple places:

In Keystone Loyalty App:

• Transaction history shows gift card claim
• Reward redemption record

In Shopify:

• Gift card email (keep in inbox)
• Customer account (if they have one)
• Gift card notification from Shopify

Recommendation: Encourage customers to save the gift card email or note the code for future use.

Using Gift Cards

At Checkout

Customers apply gift cards during checkout:

1. Add items to cart
2. Proceed to checkout
3. Enter gift card code in payment section
4. Gift card balance applies to order
5. Remaining balance (if any) saved for future use

Partial Balance Usage

Gift cards can be used across multiple orders:

Example:

Gift Card Value: $25.00

Order 1:
Subtotal: $15.00
Gift Card Applied: -$15.00
Remaining Balance: $10.00
Customer Pays: $0.00

Order 2:
Subtotal: $30.00
Gift Card Applied: -$10.00
Remaining Balance: $0.00
Customer Pays: $20.00

Multiple Gift Cards

Customers can apply multiple gift cards to a single order:

Shopify allows combining:

• Multiple gift cards
• Gift card + discount code
• Gift card + automatic discounts

Example:

Order Total: $75.00
Gift Card 1 ($25): -$25.00
Gift Card 2 ($10): -$10.00
Discount Code (10% off): -$4.00
Customer Pays: $36.00

Balance Checking

Customers can check gift card balance:

Methods:

• Shopify checkout page (enter code, balance displays)
• Your store's gift card balance page (if enabled)
• Contact customer support

Gift Card Flexibility

Gift cards work on any products, have no expiration (by default), and can be combined with other payment methods, making them the most flexible loyalty reward option.

Refunds and Reversals

Automatic Refunds

Points are automatically refunded to customers in these scenarios:

Scenario	Refund Behavior
Gift card deleted before use	Full point refund
Reward deleted	Full point refund for all unused gift cards

Gift Card vs. Order Refunds

If an order paid with a gift card is refunded, the gift card balance is restored (standard Shopify behavior), but loyalty points are not refunded. The gift card itself remains valid.

Manual Refunds

Customers and merchants can manually refund claimed gift cards to return points.

Customer-Initiated Refunds

Customers can refund their claimed gift cards through the loyalty widget or their account:

Eligibility:

• Gift card has any remaining balance
• Customer has the gift card in their account

Process:

1. Customer views their claimed rewards
2. Customer selects the gift card to refund
3. Customer confirms refund
4. Points are returned to customer's balance (proportionally based on remaining balance)
5. Gift card is deactivated/disabled

Refund Amount:

Points refunded are calculated proportionally based on the remaining gift card balance:

Formula: Points Refunded = (Current Balance / Original Value) × Points Cost

Gift Card Status	Points Refunded
Unused (full balance)	Full points refunded
Partially used	Proportional refund based on remaining balance
Fully used ($0 balance)	Cannot be refunded

Examples:

Example 1: Unused Gift Card
Reward: $25 Gift Card (2,500 points)
Current balance: $25.00 (unused)
Refund calculation: ($25 / $25) × 2,500 = 2,500 points
Points refunded: 2,500 points
Gift card status: Disabled

Example 2: Partially Used Gift Card
Reward: $25 Gift Card (2,500 points)
Current balance: $15.00 (used $10)
Refund calculation: ($15 / $25) × 2,500 = 1,500 points
Points refunded: 1,500 points
Gift card status: Disabled

Example 3: Mostly Used Gift Card
Reward: $50 Gift Card (5,000 points)
Current balance: $8.00 (used $42)
Refund calculation: ($8 / $50) × 5,000 = 800 points
Points refunded: 800 points
Gift card status: Disabled

Example 4: Fully Used Gift Card
Reward: $25 Gift Card (2,500 points)
Current balance: $0.00 (fully used)
Cannot refund: No value remaining

Merchant-Initiated Refunds

Merchants can refund gift cards on behalf of customers:

Use Cases:

• Customer service requests
• Technical issues with gift card
• Customer preference for different reward
• Goodwill gestures

Process:

1. Navigate to Loyalty Program > Customers
2. Select the customer
3. View their claimed rewards/transactions
4. Select the gift card to refund
5. Confirm refund
6. Points are returned to customer's balance (proportionally based on remaining balance)
7. Gift card is deactivated/disabled

Same refund calculation applies: Proportional refund based on remaining gift card balance.

Best Practice

Communicate with customers about gift card refunds. When a gift card is refunded, it becomes disabled and can no longer be used, even if it had remaining balance.

Shopify Integration

Gift Card Creation

When a customer claims a gift card reward:

1. App sends request to Shopify to create gift card
2. Shopify generates unique gift card code
3. Shopify sets initial balance
4. Shopify triggers gift card email
5. App records transaction in customer history

Gift Card Management

Manage issued gift cards through Shopify admin:

Navigation: Shopify admin > Products > Gift cards

Available Actions:

• View all issued gift cards
• Check gift card balances
• Disable gift cards
• Issue additional gift cards manually
• Export gift card data

App-Generated Identification:

Gift cards created by the loyalty app include:

• Note indicating loyalty program origin
• Link to customer who claimed it
• Transaction reference

Setup Process

Step 1: Navigate to Gift Card Rewards

1. Open Keystone Loyalty Rewards app
2. Navigate to Loyalty Program > Rewards > Gift card rewards
3. Click Create Reward

Step 2: Configure Basic Settings

Field	Description
Reward Name	Name customers see (e.g., "$25 Store Credit")
Points Required	Points cost to claim this reward
Gift Card Value	Dollar value of the gift card

Example Configuration:

Reward Name: $10 Gift Card
Points Required: 1,000 points
Gift Card Value: $10.00

Step 3: Set Customer Eligibility

Choose one:

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

Step 4: Review and Save

1. Review all settings
2. Verify gift card value matches point cost appropriately
3. Click Save Reward
4. The reward is now available for customers to claim

Claim Restriction

Remember: Customers can only claim this reward again after fully using their previous gift card from this reward (balance = $0).

Step 5: Customize Gift Card Email (Optional)

1. Go to Shopify admin > Settings > Notifications
2. Find Gift card created
3. Click Edit code to customize
4. Add loyalty program branding
5. Save changes

Use Cases

1. Flexible Universal Reward

Configuration:

• Multiple gift card values: $10, $25, $50
• Points: 1,000, 2,500, 5,000
• Eligibility: All customers

Goal: Provide flexible redemption options for all engagement levels. Customers can claim different value rewards independently.

2. Tier-Based Gift Cards

Configuration:

• $5 gift card: Bronze tier, 500 points
• $10 gift card: Silver tier, 1,000 points
• $25 gift card: Gold tier, 2,500 points

Goal: Incentivize tier progression with access to higher-value gift cards.

3. High-Value VIP Reward

Configuration:

• Gift card value: $100
• Points: 10,000
• Eligibility: Gold tier only

Goal: Reward top-tier customers with substantial store credit.

4. New Member Welcome

Configuration:

• Gift card value: $5
• Points: 250 points (discounted from usual 500)
• Eligibility: All customers

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

5. Seasonal Promotion

Configuration:

• Gift card value: $20
• Points: 1,500 points (25% discount)
• Eligibility: All customers

Goal: Limited-time offer to drive seasonal engagement.

Best Practices

1. Offer Multiple Values

Provide gift card options at different point thresholds:

Recommended Tiers:

• Entry: $5-$10 (500-1,000 points)
• Mid: $25 (2,500 points)
• Premium: $50-$100 (5,000-10,000 points)

Benefits:

• Accessibility for all point balances
• Encourages accumulation for higher values
• Provides clear progression path

2. Keep Point Ratios Consistent

Maintain the same points-per-dollar ratio across all gift card values:

Example:

Ratio: 100 points = $1

$10 gift card = 1,000 points
$25 gift card = 2,500 points
$50 gift card = 5,000 points

Why: Inconsistent ratios feel unfair and confuse customers.

3. Create Multiple Value Options

Offer gift card rewards at different values so customers can claim independently:

Recommended Strategy:

• $10 Gift Card (1,000 points)
• $25 Gift Card (2,500 points)
• $50 Gift Card (5,000 points)

Benefits:

• Customers can claim a different value even with unused gift cards
• Provides flexibility for different point balances
• Each reward tracked separately (no blocking between values)

4. Communicate No Expiration

Highlight that gift cards don't expire:

Messaging Examples:

• "Never expires!"
• "Use anytime on any products"
• "Save for your next purchase"

Benefit: Reduces customer anxiety about losing value.

5. Use Clear, Simple Names

Make it obvious what customers receive:

Good Names:

• "$10 Store Credit"
• "$25 Gift Card"
• "$50 Reward Card"

Avoid:

• "Loyalty Voucher" (vague)
• "Special Offer" (unclear value)
• "Reward Level 3" (confusing)

6. Monitor Redemption Patterns

Track how customers use gift cards:

Key Metrics:

• Redemption rate by value tier
• Time from claim to first use
• Average additional spend beyond gift card value

Related Features

• Order Discount Rewards - Cart-wide discounts
• Product Discount Rewards - Product-specific discounts
• Free Shipping Rewards - Free shipping codes
• Customer Tiers - Segment-based eligibility
• Transactions - View reward claims and usage

Summary

Gift Card Rewards provide the ultimate flexibility for your customers while maintaining value for your business. They're easy to understand, never expire (by default), and can be used on any products without restrictions.

By offering multiple gift card values with consistent point ratios and unlimited redemptions, you create a reliable, fair reward system that encourages sustained customer engagement and point accumulation. The automatic Shopify integration ensures seamless gift card creation and delivery, while the verification process guarantees customers always receive functioning gift cards for their redeemed points.