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how to set up loyalty program in klaviyo

The Ultimate Playbook for Loyalty Program Integration in Klaviyo

Pushing buyers into a loyalty program can lead to them spending twice as much with your store. Learn how to use Klaviyo for customer loyalty growth....

Did you know that loyalty program members drive 12 to 18% more annual revenue than non-members? This is a fact not lost on large brands like Nivea which credit loyalty initiatives for at least 5% of their yearly earnings.

But at the same time, the average American consumer is enrolled in 16.7 loyalty programs! So, standing out is a necessity. 

It brings to mind Seth Godin’s timeless question: Would they miss you if you were gone?

If the answer isn’t an easy “yes,” then your loyalty program might be falling short. Whether due to unclear intent, limited tech infrastructure, or gaps in execution. Or maybe all of these together?

Turning that around doesn’t happen overnight. Every rebuild starts small. And in this case, it starts with technology. 

This guide shows you how to use Klaviyo, one of the top retention platforms, to lay the foundation for a robust loyalty strategy, demonstrating how a powerful Klaviyo-loyalty program integration can transform your customer relationships.

Benefits of loyalty integration in Klaviyo

Define your loyalty model

Align all rewards with customer motivations

Set clear goals

Segmentation and lifecycle mapping

3 tools for loyalty integration in Klaviyo

Wrapping up

Benefits of loyalty integration in Klaviyo

Consolidating loyalty programs with email and SMS within Klaviyo offers a powerful synergy that enhances customer relationships, streamlines operations, and drives revenue. This comprehensive approach is central to effective Klaviyo loyalty marketing:

  • Unified Customer Data: Get a complete, real-time view of every customer, merging purchase history, web activity, email/SMS engagement, and loyalty data into one profile.
  • Hyper-Personalization: Deliver highly relevant email and SMS messages based on a customer’s loyalty status, points balance, past behavior, and preferences.
  • Seamless Omnichannel Experience: Create consistent brand messaging and automated journeys that flow effortlessly across email and SMS channels, strengthening your loyalty program with Klaviyo.
  • Enhanced Engagement & Retention: Boost loyalty program participation, proactively engage at-risk customers, and drive repeat purchases through highly targeted campaigns.
  • Operational Efficiency: Manage all email, SMS, and loyalty campaigns from a single platform, streamlining workflows and reducing tech stack complexity.
  • Deeper Analytics: Gain comprehensive insights into overall campaign performance, enabling data-driven decisions and continuous optimization across both channels.


Before you even touch Klaviyo’s integration settings, you’ll need to decide what kind of loyalty program is best for you. 

So, let’s set up the foundation of a strong loyalty program. 

Define your loyalty model

There are three types of loyalty models: Points-based, tiered, and paid. Let’s take a quick look at each of them. 

1. Points-based

Customers earn points for actions (purchases, sign-ups, reviews, social shares) and redeem them for rewards. Klaviyo receives “points earned,” “points redeemed,” and “current points balance” as custom events or profile properties from your loyalty integration. This direct sync is crucial for a smooth rewards integration with Klaviyo. 

Moroccanoil’s Points-based Reward System

Source: Moroccanoil’s Points-based Reward System

Subsequently, this data allows you to send automated emails and SMS via a loyalty workflow in Klaviyo:

  • “You just earned X points!”
  • “You have Y points available – redeem them now!”
  • “Your points are expiring soon!”

You would be segmenting customers based on point thresholds to encourage redemption.

2. Tiered (VIP)

Customers unlock higher tiers (e.g., Bronze, Silver, Gold) based on spending or engagement, receiving increasingly exclusive perks. This often has a much higher ROI. 

Your loyalty app will send “Tier Upgraded” or “Tier Changed” events, and “Current Tier” as a profile property. Klaviyo excels here:

  • Exclusive campaigns only for “Gold Tier” members.
  • Nudge campaigns for customers close to reaching the next tier (“You’re only $X away from Silver Tier perks!”).
Diane von Furstenberg's Insider Tiers

Source: Diane von Furstenberg’s Insider Tiers

The campaigns will be part of automated loyalty flows in Klaviyo

3. Paid/subscription

Customers pay a fee for exclusive benefits (such as free shipping, exclusive products, early access). You can create:

  • Welcome flows for new paid members detailing benefits.
  • Offers to retain paid members.
  • Segmentation of paid vs. non-paid customers for different messaging.
Welcome flows for new paid members

Source: Antavo

You can also send out personalized renewal reminders, powered by loyalty automation in Klaviyo. 

Align all rewards with customer motivations

This is where true personalization shines through loyalty marketing in Klavuyo. You see, simply giving generic discounts might not be enough. You need to understand what truly motivates your specific customer segments.

Klaviyo’s unified customer profiles provide the data to understand motivations:

  • Purchase History: Identify popular products or categories for specific customers. Offer rewards related to those preferences. This feeds into effective e-commerce loyalty campaigns in Klaviyo.
  • Engagement Data: See which emails or SMS messages resonate. If a customer consistently opens “new arrival” emails, offer early access as a loyalty perk.
  • Website Behavior: Track browsed products or categories. Offer points multipliers on those items or access to exclusive content related to their interests.
  • Dynamic Content Blocks: Insert personalized reward options directly into emails based on a customer’s loyalty tier or points balance — a key feature for leveraging any loyalty program integration in Klaviyo to the hilt.
  • Targeted Campaigns: Segment customers by preferences (e.g., “customers who buy sustainable products”) and offer loyalty rewards that align with those values (e.g., “double points on eco-friendly items this week”).

Test different reward offerings on segments to see what drives the most engagement and redemption, ensuring that any rewards integration in Klaviyo is suitably optimized. 

Set clear goals

Your loyalty program isn’t just a feel-good initiative, right? It needs to drive measurable business outcomes. Klaviyo is instrumental in tracking and optimizing toward these goals, supporting customer loyalty growth in Klaviyo. 

1. Repeat purchases

Identify customers who are falling out of their typical purchase frequency and send targeted re-engagement messages with loyalty incentives. Automate flows triggered by “X days since last purchase” or “customer has Y points available” to incentivize the next purchase. For example, here’s a re-engagement flow, a core aspect of loyalty workflows in Klaviyo. 

loyalty workflows in Klaviyo

Source: LoyaltyLion

Then, track repeat purchase rate within Klaviyo and correlate it with loyalty program engagement.

2. Average order value (AOV) lift

Design rewards that encourage higher spend. Promote “bundle and save” loyalty offers or “spend more, get more points” campaigns via email and SMS. Use Klaviyo’s product recommendations in your loyalty-related emails to encourage adding more to the cart.

As you’ll find out, cart abandonment flows will be an integral and regular part of Klaviyo’s e-commerce loyalty campaigns. 

3. Customer lifetime value (LTV) increase

Use loyalty automation in Klaviyo to build comprehensive flows that nurture customers through their entire lifecycle, from welcome to loyal advocates, using loyalty data at each stage. 

If your loyalty platform includes referrals, promote referral links and reward referrers and referred customers, directly impacting CLTV through new customer acquisition and retention.

Segmentation and lifecycle mapping

Understanding customer journeys and how loyalty will fit in before configuring integrations is crucial. Klaviyo’s “Customer Lifecycle” reporting and pre-built flow templates are designed around these stages. You’ll create segments and flows within each stage to build the foundation for loyalty marketing through Klaviyo: 

  • When a new customer makes their first purchase, trigger a Klaviyo flow that invites them to join the loyalty program. This is the first step in a successful loyalty program with Klaviyo.
  • Automate emails/SMS whenever points are earned.
  • Send celebratory messages when a reward is redeemed, and encourage further engagement.
  • Trigger special communications as customers move up tiers.
  • If a loyal customer becomes inactive, use loyalty data (e.g., “has points available,” “last loyalty activity X days ago”) to craft specific win-back campaigns, forming a strategic loyalty workflow within Klaviyo. 

Based on your loyalty model and goals, define precise customer segments within Klaviyo before setting up flows: 

  • “Loyalty Members – Active”
  • “Loyalty Members – VIP Tier”
  • “Loyalty Members – Points Expiring Soon”
  • “Non-Loyalty Members – Eligible for Enrollment”
  • “Customers X days since last purchase, with Y points”

Klaviyo’s powerful segmentation tools allow you to combine loyalty data with all other customer data points to build incredibly precise audiences for targeted messaging, essential for all e-commerce loyalty campaigns in Klaviyo or elsewhere. 

3 tools for loyalty integration in Klaviyo  

As we saw, integrating your loyalty program with Klaviyo is about creating a seamless flow of data that empowers highly personalized marketing. There are 3 popular tools to achieve this:

  1. LoyaltyLion
  2. Yotpo
  3. Klaviyo 

Let’s kick off with LoyaltyLion. 

1. LoyaltyLion

Founded in 2012 by Dave Clark and Charlie Casey, LoyaltyLion is headquartered in London, United Kingdom. They were a pioneer in offering loyalty solutions for Shopify and have grown to work with over 10,000 e-commerce brands worldwide. They are recognized as a leader in the loyalty platform space, offering a robust partnership between Klaviyo and loyalty apps. 

Below are the steps to integrate Klaviyo with LoyaltyLion:

  • Log in to your LoyaltyLion account. Navigate to the Manage tab. Under Settings, select Integrations.
LoyaltyLion account dashboard

  • Locate Klaviyo in the list of available integrations and click the Install Integration button.

Klaviyo Install Integration

  • Log into your Klaviyo account when prompted.
  • Click Allow to authorize the integration.

LoyaltyLion account dashboard

  • Choose the properties and/or events you want to sync with Klaviyo contacts. This paves the way for a smooth rewards integration with Klaviyo.
  • Next, click Update configuration to save your settings.

LoyaltyLion account dashboard

2. Yotpo

Yotpo is one of the leading e-commerce retention marketing platforms that helps direct-to-consumer brands build stronger customer relationships and drive growth. 

Yotpo enables brands to create customized loyalty programs with points, tiers, and rewards. They also facilitate referral programs to incentivize existing customers to bring in new ones, contributing to effective loyalty marketing via Klaviyo. 

For a loyalty program with Klaviyo through Yotpo, take these steps:

  • In your Klaviyo account, navigate to Settings > Account > API Keys.
  • Click Create Private API Key to open the key creation page. Enter a name for your key.
  • Under Select Access Level, choose Full Access Key, then click Create.
  • Once the key is generated, copy it to your clipboard
  • In your Yotpo SMS & Email dashboard, navigate to the Integrations section.
  • Search for Klaviyo and click Connect.
  • Follow the setup wizard and paste the copied API key when prompted.
  • Click Connect to complete the process.

Yopto dashboard

To start syncing your email subscribers, switch on the Sync toggle. Then, from the drop-down menu that appears, choose the Klaviyo list where new subscribers should be added.

To sync custom events from Yotpo SMS & Email to Klaviyo, enable the Sync Events toggle.

3. Klaviyo

You can create and manage e-commerce loyalty campaigns within Klaviyo, natively. There is no need for third-party integrations. 

With its robust segmentation capabilities, you can target customers based on highly specific behaviors, purchase history, engagement patterns, and predictive data. This level of precision allows you to deliver personalized loyalty experiences that drive repeat purchases, increase customer lifetime value, and strengthen brand relationships. For more details, check out our blog post on how to use 7 advanced segments in Klaviyo.

Whether you’re rewarding high-spending customers, re-engaging inactive ones, or tailoring incentives by lifecycle stage, Klaviyo gives you full control to run loyalty initiatives that truly resonate with your audience. 

Wrapping up!

What keeps customers coming back isn’t just points or perks. It’s recognition. Relevance. A sense that they matter beyond the transaction. This is the essence of successful loyalty marketing in Klaviyo and everywhere.

When done right, loyalty marketing doesn’t feel like marketing at all. It feels like a connection.

Klaviyo gives you the infrastructure—but the real power lies in how you use it: to reward behavior, yes, but more importantly, to reflect values, celebrate milestones, and build trust at scale. 

Need help setting up a loyalty program with Klaviyo? Book a 30-min call with one of our Klaviyo experts!

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Susmit Panda - Content Writer

A realist at heart and an idealist at head, Susmit is a content writer at Mavlers. He has been in the digital marketing industry for half a decade. When not writing, he can be seen squinting at his Kindle, awestruck.

Chintan Doshi - Reviewer

Chintan is the Head of Email & CRM at Mavlers. He loves email marketing and has been in the industry for 7+ years. His track record of email marketing success covers building email programs from scratch and using data-driven strategies to turn around underperforming accounts.

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