Shopify loyalty apps: features and setup checks

What to take away

Smile.io, LoyaltyLion, Yotpo Loyalty & Referrals, Stamped Loyalty and Marsello are the main named options on Shopify.
Growave and Joy Loyalty are also worth a look for smaller budgets or all-in-one needs.
For a UK store with a counter, Marsello and LoyaltyLion are options to assess because both publicise Shopify POS support.
Check VAT on rewards, UK GDPR consent, data export and referral cookie consent before you sign.

How Shopify loyalty apps differ

Named apps differ most in where points live. Smile.io, LoyaltyLion and Yotpo keep balances on vendor servers and show them through a Shopify widget. Growave and Joy Loyalty also run hosted balances. Metafield routes are less common, but some custom builds still write points to customer metafields.

Where loyalty points live

Hosted balance

Apps: Smile.io, LoyaltyLion, Yotpo
Exit: Manual export and import
In-store: Shopify POS or integrated till

Metafield balance

Apps: Custom builds
Exit: Moves if field names stable
In-store: Confirm reader support

The shape decides your exit. If balances sit in a closed database, switching provider means exporting and re-importing them by hand. Metafield balances move more easily, but only while the app keeps its field names stable.

In-store collection usually runs through Shopify POS or an integrated till. Marsello and LoyaltyLion both work with Shopify POS on iPad, iPhone and Android devices, using the Shopify Tap & Chip Reader, Shopify Chip & Swipe Reader or Shopify POS Go.

Five checks before you choose a Shopify rewards programme

List the earn actions you want. Points per pound, a birthday bonus and a referral reward are three builds, not one setting.
Decide where points are earned. Online only is simple; adding a till means hardware and staff training.
Fix the refund rule in writing. Points should reverse automatically when an order is refunded.
Ask for a full data export in a file you can open without the vendor. The export example below gives the file type and fields.
Confirm the VAT treatment of the reward. A discount and a free gift are not the same.

Comparing named Shopify loyalty apps

What it does

Smile.io: Points, referrals and VIP tiers
LoyaltyLion: Points, tiers, referrals and segmentation
Yotpo Loyalty & Referrals: Loyalty, referrals, reviews and SMS in one suite
Stamped Loyalty: Points, referrals and VIP tiers
Marsello: Loyalty, email, SMS and POS in one tool
Growave: Loyalty, referrals, wishlist and reviews
Joy Loyalty: Points, referrals and VIP tiers

Where points live

Smile.io: Vendor servers, storefront widget
LoyaltyLion: Vendor servers
Yotpo Loyalty & Referrals: Vendor servers
Stamped Loyalty: Vendor servers
Marsello: Vendor servers
Growave: Vendor servers
Joy Loyalty: Vendor servers

In-store and referrals

Smile.io: Shopify POS on supported plans; referral links
LoyaltyLion: Shopify POS integration; strong referral tracking
Yotpo Loyalty & Referrals: POS support depends on plan; referral tracking
Stamped Loyalty: POS support varies; referral links
Marsello: Shopify POS and in-store capture; referral features
Growave: POS support limited; referral tracking
Joy Loyalty: POS support limited; referral tracking

UK notes, plan tiers and pricing

Smile.io: Free plan for a small member count, then Grow and Pro paid tiers; prices quoted in USD and scale with members
LoyaltyLion: UK-founded; no free tier, quote-based plans priced by monthly order volume; check its GDPR terms
Yotpo Loyalty & Referrals: Quote-based pricing with no public rate card; suits larger UK retailers already using Yotpo
Stamped Loyalty: Free tier for reviews, then paid loyalty plans; easier add-on if you use Stamped reviews
Marsello: Paid tiers split between loyalty only and loyalty plus marketing; strong fit for UK shops with a counter or pop-up
Growave: Free plan then paid tiers; budget all-in-one for online-only UK stores
Joy Loyalty: Free plan then paid tiers; low-cost start for new Shopify stores

Plan names and limits change, so check each app's Shopify listing for current UK pricing before you commit.

For a UK store that sells online and at a counter, Marsello is one option to assess because it combines in-store points capture with email and SMS in one contract. LoyaltyLion is another option for larger UK brands that need detailed referral tracking and can meet its paid plan. Smile.io or Joy Loyalty suit a small online-only shop.

Named Shopify loyalty apps compared

Marsello

What it does: Loyalty, email, SMS, POS
In-store: Shopify POS
UK notes: Counter or pop-up
Best for: Online and counter

LoyaltyLion

What it does: Points, tiers, referrals
In-store: Shopify POS
UK notes: UK-founded
Best for: Larger UK brands

Smile.io

What it does: Points, referrals, VIP
In-store: Shopify POS
UK notes: Good first app
Best for: Small online-only shop

Joy Loyalty

What it does: Points, referrals, VIP
In-store: Limited
UK notes: Low-cost
Best for: Small online-only shop

Data portability and switching apps

Ask what happens on the day you cancel. The export you want is a CSV file with one row per member and columns such as customer_id, email, points_balance, earn_date, expiry_date and last_activity. A good answer names that file and its fields. A poor answer is a promise that support will help.

If you sell through a counter as well as online, the comparison of loyalty app or punch card shows why paper and app schemes fail for different reasons.

VAT on points, cashback and free gifts

Smile.io and LoyaltyLion both let you issue points discounts, free gifts or cashback. The VAT question turns on what the customer receives, not what you call it. Points that reduce the price of goods work as a discount, so output VAT follows the lower price.

VAT on points rewards

What does the customer receive?

Yes

Points discount -> output VAT follows lower price

Cashback -> may look like separate supply

Cashback is different. Our default position: treat cashback that reduces the price of a specific order as a discount, so output VAT follows the lower price. Treat a general cash payment as a separate supply and ask your accountant if the link to an order is unclear.

Registration status matters too. HMRC publishes the current threshold, which was raised to £90,000 on 1 April 2024, and a growing store can cross it mid-year. The GOV.UK VAT registration service sets out when registration is compulsory.

Consent and referral tracking

Points balances, purchase histories and referral links are personal data. You need a lawful basis, a retention period and a route for deletion requests. Consent is one option, not the only one.

Cookie-based referral attribution needs consent before non-essential cookies are set. The ICO's UK GDPR guidance explains lawful bases and how to record your reasoning.

Ask vendors where records are held and whether a deletion request reaches their copy too. Marsello, LoyaltyLion and Yotpo all hold balances on their own servers.

Spending points at checkout

The customer has to be able to spend points without leaving checkout. An extra page or a slow widget shows up as drop-off, and rewards then cost more than they return.

If your abandoned checkout rate is already high, the order of work in cutting checkout abandonment is a better starting point than a new app.

Common questions

Do Shopify loyalty apps work for a small UK store?

Yes. Smile.io and Joy Loyalty offer free or low-cost plans. Keep points per pound with automatic refund reversal. Tiers and cashback usually need more admin than a small team has.

Can a loyalty app collect points in store as well as online?

Only where the app supports your till. Marsello and LoyaltyLion publicise Shopify POS support. Smile.io and Growave have narrower POS options. Test one in-store transaction before launch.

How should a Shopify store handle VAT on loyalty rewards?

Treat a points discount as a discount, and a free gift as a supply of that gift. Treat cashback against a specific order as a discount; treat a general cash payment as a separate supply.

How do we switch loyalty apps without losing balances?

Ask for the CSV export example above before you sign. Smile.io, LoyaltyLion and Marsello should confirm it in writing.