How to Apply Customer Tag-Based Discounts with Shopify Functions | Shopify Tutorial

In the competitive world of e-commerce, personalized shopping experiences are key to driving customer loyalty and increasing sales. One powerful way to achieve this is by offering discounts based on customer tags in Shopify. Using Shopify Functions, you can create custom discount logic that automatically applies discounts to specific customers based on their tags. This tutorial will guide you through the process of setting up customer tag-based discounts using Shopify Functions, allowing you to enhance your Shopify store with personalized promotions.

What Are Shopify Functions?

Before diving into the implementation, let’s understand what Shopify Functions are and why they’re beneficial:

• Shopify Functions: Shopify Functions are serverless functions that allow you to customize the behavior of your Shopify store beyond what’s possible with liquid or theme customizations. They enable you to create custom logic that runs on Shopify’s servers, ensuring high performance and scalability.
• Use Cases: Shopify Functions are ideal for creating custom discount rules, payment methods, shipping logic, and more. In this tutorial, we’ll focus on using Shopify Functions to apply discounts based on customer tags.

Prerequisites

Before starting, make sure you have the following prerequisites:

• Shopify Store: You need access to a Shopify store, ideally with a Shopify Plus plan, as Shopify Functions are primarily available to Shopify Plus merchants.
• Shopify CLI: The Shopify CLI (Command Line Interface) is required to develop and deploy Shopify Functions.
• Node.js and npm: Ensure Node.js and npm are installed on your machine. You can download them from the official Node.js website.

Step 1: Setting Up Your Development Environment

To get started, you need to set up your development environment, including the Shopify CLI and the necessary dependencies.

Install Shopify CLI

First, install the Shopify CLI if you haven’t already:

bashCopy codenpm install -g @shopify/cli

The Shopify CLI simplifies the process of creating, testing, and deploying Shopify Functions.

Step 2: Creating a Shopify Function for Customer Tag-Based Discounts

Now that your environment is set up, let’s create a Shopify Function that applies discounts based on customer tags.

Create a New Shopify Function

Start by using the Shopify CLI to create a new Shopify Function:

bashCopy codeshopify app generate extension --type=discounts

This command will prompt you to enter a name for your function and choose a directory where it will be created. Once generated, the function will include boilerplate code for a basic discount function.

Define the Discount Logic

Next, navigate to the function’s directory and open the index.js file. This is where you’ll define the logic for applying discounts based on customer tags.

Here’s an example of how you might implement this:

javascriptCopy codeexport default function applyDiscountBasedOnTags({ discount, cart, customer }) {
  const discountValue = 10; // 10% discount
  const eligibleTags = ['VIP', 'Loyal']; // Tags that qualify for the discount

  if (customer && customer.tags.some(tag => eligibleTags.includes(tag))) {
    return {
      discount: {
        type: 'percentage',
        value: discountValue
      }
    };
  }

  return null; // No discount applied
}

In this code:

• discountValue: The percentage discount to apply (e.g., 10%).
• eligibleTags: An array of customer tags that qualify for the discount (e.g., ‘VIP’, ‘Loyal’).
• customer.tags: Checks if the customer has any of the eligible tags. If they do, the discount is applied; otherwise, no discount is given.

Test Your Function Locally

To test your Shopify Function, use the Shopify CLI:

bashCopy codeshopify app dev

This command runs your function locally, allowing you to test the logic in a development environment. You can simulate various scenarios to ensure that the discount is applied correctly based on the customer tags.

Step 3: Deploying the Shopify Function

Once you’ve tested your function and confirmed that it works as expected, you’re ready to deploy it to your Shopify store.

Deploy the Function

Deploy the function using the following command:

bashCopy codeshopify app deploy

This command will upload your function to Shopify, making it available in your store’s discount settings.

Step 4: Integrating the Function with Your Shopify Store

Now that your function is deployed, you need to integrate it with your Shopify store to apply the discounts at checkout.

Create a Discount in Shopify Admin

1. Navigate to Discounts: In your Shopify admin, go to “Discounts” and click “Create discount.”
2. Select Custom Discount: Choose the option to create a custom discount.
3. Apply the Shopify Function: Select your newly created function from the list of available functions. Configure any additional settings, such as discount value and expiration date.

Step 5: Advanced Customizations

Depending on your business needs, you may want to extend the functionality of your Shopify Function. Here are a few advanced customizations you can consider:

1. Tiered Discounts

You can create tiered discounts based on different customer tags. For example, offer a 5% discount for ‘Regular’ customers and a 15% discount for ‘VIP’ customers:

javascriptCopy codeexport default function applyTieredDiscount({ discount, cart, customer }) {
  if (!customer) return null;

  const tagDiscounts = {
    Regular: 5,
    VIP: 15
  };

  const customerTag = customer.tags.find(tag => tagDiscounts[tag]);

  if (customerTag) {
    return {
      discount: {
        type: 'percentage',
        value: tagDiscounts[customerTag]
      }
    };
  }

  return null;
}

2. Minimum Purchase Requirement

Add logic to require a minimum purchase amount before applying the discount:

javascriptCopy codeexport default function applyDiscountWithMinimum({ discount, cart, customer }) {
  const minimumPurchaseAmount = 50.0; // Minimum amount to qualify for discount
  const discountValue = 10;
  const eligibleTags = ['VIP', 'Loyal'];

  if (customer && cart.total >= minimumPurchaseAmount && customer.tags.some(tag => eligibleTags.includes(tag))) {
    return {
      discount: {
        type: 'percentage',
        value: discountValue
      }
    };
  }

  return null;
}

3. Combining with Other Discounts

You can customize your function to allow the discount to stack with other promotions or restrict it to certain products:

javascriptCopy codeexport default function applyConditionalDiscount({ discount, cart, customer }) {
  const discountValue = 10;
  const eligibleTags = ['VIP'];

  const hasEligibleTag = customer && customer.tags.some(tag => eligibleTags.includes(tag));
  const hasSpecificProduct = cart.items.some(item => item.productId === 'specific-product-id');

  if (hasEligibleTag && hasSpecificProduct) {
    return {
      discount: {
        type: 'percentage',
        value: discountValue
      }
    };
  }

  return null;
}

Step 6: Monitoring and Adjusting Your Discount Logic

After deploying your function, it’s important to monitor its performance and make adjustments as needed. You can track the effectiveness of your discounts by reviewing sales data in Shopify Analytics and gathering customer feedback.

Conclusion

Using Shopify Functions to create customer tag-based discounts allows you to offer personalized promotions that can significantly enhance customer loyalty and boost sales. By following this tutorial, you’ve learned how to create, test, and deploy a Shopify Function that applies discounts based on customer tags. This level of customization opens up numerous possibilities for creating dynamic and targeted marketing strategies in your Shopify store.

As you continue to explore Shopify development, consider how Shopify Functions can be used to further tailor the shopping experience for your customers. Whether you’re offering discounts, customizing checkout flows, or integrating with third-party services, Shopify Functions provide the flexibility and power needed to create a truly unique e-commerce experience.