How to Implement a Loyalty Program in Magento 2

Why You Need a Loyalty Program in Magento 2

Customer retention is just as important as acquisition. A well-structured loyalty program keeps shoppers coming back, increases average order value, and turns casual buyers into brand advocates. Magento 2 makes it easy to implement a points-based rewards system, but where do you start?

Step 1: Choose the Right Extension

While Magento 2 doesn't include built-in loyalty features, several excellent extensions exist. At Magefine, we recommend:

  • Amasty Loyalty Program - Flexible points system with tiered rewards
  • Mageplaza Reward Points - Simple setup with good reporting
  • Webkul Reward System - Budget-friendly option with core features

Step 2: Install Your Chosen Extension

Let's walk through installing Amasty Loyalty via composer:


composer require amasty/module-loyalty
php bin/magento setup:upgrade
php bin/magento setup:di:compile
php bin/magento setup:static-content:deploy -f

Step 3: Configure Basic Settings

Navigate to Stores > Configuration > Amasty Extensions > Loyalty Program. Key settings to adjust:


<?xml version="1.0"?>
<config xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="urn:magento:module:Amasty_Loyalty:etc/system.xsd">
    <default>
        <amasty_loyalty>
            <general>
                <enabled>1</enabled>
                <points_name>Reward Points</points_name>
                <earn_rate>10</earn_rate> <!-- 10 points per $1 spent -->
            </general>
        </amasty_loyalty>
    </default>
</config>

Step 4: Create Reward Tiers

Tiered rewards encourage customers to spend more. Here's how to set up Silver/Gold/Platinum tiers:

  1. Go to Marketing > Loyalty Program > Tiers
  2. Click "Add New Tier"
  3. Set minimum points thresholds and bonus percentages

Step 5: Add Points to Product Pages

Display potential earnings on product pages by adding this to your theme's product view template:


<?php if ($block->getPointsEarned()): ?>
    <div class="product-points">
        <?= /* @escapeNotVerified */ __('Earn %1 points', $block->getPointsEarned()) ?>
    </div>
<?php endif; ?>

Step 6: Set Up Email Notifications

Keep customers engaged with automated point updates. Configure these under Marketing > Email Templates:

  • Points earned notification
  • Tier upgrade alert
  • Points expiration warning

Step 7: Test Thoroughly

Before launching, verify:

  • Points calculate correctly during checkout
  • Rewards apply properly to orders
  • Tier promotions trigger at the right thresholds
  • All email notifications send correctly

Advanced Customization Options

For developers looking to extend functionality:


<?php
namespace Vendor\Module\Plugin;

class PointsCalculator
{
    public function afterCalculatePoints(\Amasty\Loyalty\Model\Calculation $subject, $result)
    {
        // Add bonus points for specific customer groups
        if ($customerGroupId == 5) {
            return $result * 1.5; // 50% bonus
        }
        return $result;
    }
}
?>

Measuring Your Program's Success

Track these key metrics in your Magento admin:

  • Redemption rate - Percentage of earned points used
  • Repeat purchase rate - How often members return
  • Average order value - Compare members vs. non-members

Common Pitfalls to Avoid

  • Setting point expiration too short (aim for 12+ months)
  • Making redemption rules too complicated
  • Not promoting the program enough
  • Failing to segment rewards for different customer types

Implementing a loyalty program in Magento 2 requires planning but pays off in customer retention and increased sales. Start simple, measure results, and gradually add more sophisticated features as your program matures.

Need help choosing or configuring the right loyalty solution? Contact our Magento experts for personalized advice.