Customer Eligibility for Shopify Discounts: Targeting Specific Segments Strategy Guide
Shopify's customer eligibility targets WHO customers are. But discounts should reach those who need them NOW. Learn native segments plus Growth Suite's intent-based targeting that protects margins on dedicated buyers.
By Muhammed Tüfekyapan
Key Takeaways
- Static segments treat all members identically - dedicated buyers and hesitant visitors get the same discount
- 60% of returning customers are dedicated buyers who would purchase at full price - discounting them wastes $9,000+ monthly
- Intent-based targeting identifies what visitors are DOING, not just who they ARE
- Growth Suite's dedicated buyer protection ensures full-price purchases from ready-to-buy visitors
- Max Number of Offers and Cooldown Period prevent discount expectation conditioning
- Use segments for loyalty programs and communication; use intent-based for real-time conversion
A returning customer discount sounds smart. Until it gives 15% off to someone who was already heading to checkout with their credit card in hand. That is the hidden cost of Shopify discount customer eligibility settings. They target WHO your customers are, not whether they actually need a discount right now.
Customer segment discount strategies help you personalize offers. They work well for loyalty programs and email campaigns. But there is a fundamental limitation most merchants miss. Past behavior does not predict current intent. A "returning customer" might be a dedicated buyer ready to pay full price. Or a hesitant browser about to leave. Static segments treat them the same.
This guide covers two approaches to targeted discount Shopify strategies. Part 1 shows you how to use Shopify's built-in customer eligibility options. Part 2 introduces Growth Suite's intent-based behavioral targeting. One targets WHO someone is. The other targets WHAT they are doing right now.
The Segment Paradox:
Customer segments tell you WHO someone is based on what they have done. But discounts should go to visitors who need them NOW. The customer who bought three times last month and is ready to buy again does not need a discount. The one browsing for 10 minutes and about to close the tab? That is who needs the nudge.
What You Will Learn
- How to set Shopify discount customer eligibility for all three options
- Creating and using customer segments for targeted discount Shopify campaigns
- Common segment strategies for first-time buyers, returning customers, and VIPs
- The limitation: Why static segments miss the real target
- Growth Suite's intent-based alternative with real-time behavioral targeting
- Advanced features: Max offers, cooldown periods, and dedicated buyer protection
- When to use each approach for maximum ROI
This article is part of our complete guide to Shopify discount rules and logic.
What Is Customer Eligibility in Shopify Discounts?
Shopify discount customer eligibility determines which customers can use a discount code or receive an automatic discount. You find this setting in every Shopify discount setup. It acts as a filter that controls who can access your offers.
Shopify gives you three options for customer segment discount targeting:
- All customers: Anyone can use the discount. No restrictions at all.
- Specific customer segments: Only customers matching segment criteria qualify.
- Specific customers: Manually selected individual customers only.
Definition (Featured Snippet Target):
Customer eligibility in Shopify discounts determines which customers can use a discount code or receive an automatic discount. Merchants can choose between all customers (no restrictions), specific customer segments (based on criteria like purchase history), or specific individual customers (manually selected).
| Eligibility Option | Best For | Example |
|---|---|---|
| All customers | Store-wide sales, public promotions | Black Friday 20% off |
| Specific customer segments | Targeted campaigns, loyalty rewards | 15% for returning customers |
| Specific customers | VIP exclusives, personal outreach | Special offer for top 10 buyers |
Let us start with how to set up each eligibility option in Shopify. Then we will examine the limitations of this approach and explore whether there is a smarter way to target customers who actually need discounts.
Shopify's Built-In Customer Eligibility Options
Complete guide to setting up customer eligibility using Shopify's native discount tools.
Option 1: All Customers (No Restrictions)
This is the simplest Shopify discount customer eligibility setting. Everyone who visits your store can use the discount. No questions asked.
When to Use "All Customers"
This is the default setting. Anyone who visits your store can use the discount. It works with both discount codes and automatic discounts. Use it for store-wide sales, seasonal promotions, and public marketing campaigns.
Quick Setup:
- Step 1: Go to Discounts in your Shopify Admin
- Step 2: Create any discount type
- Step 3: Under "Customer eligibility," select All customers
- Step 4: This is the default. No additional configuration needed.
Best use cases: Black Friday sales, new store launch promotions, social media shared discount codes, and influencer partnership codes.
The Trade-Off:
Choosing "All customers" means no targeting at all. Your loyal VIP customer gets the same 20% as a first-time visitor. For broad sales events this is fine. But for ongoing promotions you are likely leaving money on the table. Or rather, giving it away to customers who would buy anyway.
Option 2: Specific Customer Segments
This is the most powerful customer segment discount option in Shopify. You can target groups of customers based on their purchase history, subscription status, tags, and more.
Understanding Customer Segments
Segments are groups of customers defined by criteria you set. Shopify automatically updates segment membership based on these rules. When a customer meets the criteria, they are added. When they no longer meet the criteria, they are removed.
How to Select Specific Customer Segments for a Discount
- Step 1: Go to Discounts in Shopify Admin
- Step 2: Click Create Discount and choose discount type
- Step 3: Configure discount value and conditions
- Step 4: Scroll to Customer eligibility
- Step 5: Select Specific customer segments
- Step 6: Click Browse to see available segments
- Step 7: Select one or more segments (OR logic. Any customer in ANY selected segment qualifies)
- Step 8: Complete other settings and Save
Pre-Built Segments in Shopify
Shopify provides several default segments you can use for returning customer discount Shopify campaigns:
| Default Segment | Criteria | Use Case |
|---|---|---|
| Email subscribers | Has email subscription = true | Newsletter exclusive discounts |
| Returning customers | Number of orders > 0 | Loyalty rewards |
| First-time customers | Number of orders = 0 | Welcome offers |
| Abandoned checkout | Abandoned checkout in last 30 days | Recovery campaigns |
Creating Custom Customer Segments
To create segments that do not exist by default for your specific customer discount campaigns:
- Step 1: Go to Customers in Shopify Admin
- Step 2: Click Segments tab
- Step 3: Click Create segment
- Step 4: Use filters to define criteria (purchase history, customer tags, location, email status)
- Step 5: Name your segment and Save
- Step 6: Segment is now available in discount eligibility settings
| Segment Name | Filter Criteria | Discount Strategy |
|---|---|---|
| VIP Customers | Total spent > $500 | Exclusive 20% off new arrivals |
| High-Value Returners | Orders > 3 AND Total spent > $300 | Early access to sales |
| Lapsed Customers | Last order > 90 days ago | Win-back 25% off |
| Wholesale Buyers | Customer tag = "wholesale" | Bulk pricing discount |
Segments Update Automatically:
When you create a segment with criteria like "Total spent > $500," Shopify automatically adds customers when they cross that threshold. And removes them if you use criteria they no longer meet. No manual management required.
Option 3: Specific Customers (Individual Selection)
This is the most granular Shopify discount customer eligibility option. You hand-pick individual customers for a discount. Most control, but least scalable.
When to Use Specific Customer Selection
Use this for VIP outreach, apology discounts after a bad experience, or personal relationships. You must manually add each customer, so it does not scale well.
Setup Steps:
- Step 1: Create your discount in Shopify Admin
- Step 2: Under "Customer eligibility," select Specific customers
- Step 3: Click Browse or start typing customer name/email
- Step 4: Select individual customers from the list
- Step 5: Add as many as needed and Save
| Situation | Why Individual Selection |
|---|---|
| Apology discount | Customer had a bad experience. Personal gesture required. |
| Influencer partnership | Specific person promoting your brand |
| B2B relationship | Known wholesale buyer with negotiated pricing |
| Contest winner | Prize discount for competition winner |
The Scalability Limit:
Specific customer selection works for a handful of people. If you are selecting more than 20-30 customers, you probably need a segment instead. Create a segment with the right criteria and let Shopify manage membership automatically.
Creating Effective Customer Segments - Best Practices
Strategic customer segment discount targeting requires thoughtful segment design. Here is how to build segments that actually drive results.
Segment Strategy by Customer Lifecycle
| Lifecycle Stage | Segment Definition | Discount Strategy | Goal |
|---|---|---|---|
| Prospect | Email subscriber, 0 orders | 10% welcome offer | First purchase |
| New Customer | 1 order, recent | 15% second purchase | Repeat conversion |
| Developing | 2-3 orders | Free shipping threshold | Habit building |
| Loyal | 4+ orders | VIP early access | Retention |
| At-Risk | Was loyal, no order in 60+ days | 25% win-back | Re-engagement |
| Lapsed | No order in 120+ days | 30% aggressive win-back | Recovery |
Common Segment Mistakes
| Mistake | Problem | Better Approach |
|---|---|---|
| Segment too broad | "All returning customers" includes dedicated buyers | Add engagement criteria (recency, frequency) |
| Segment too narrow | "5+ orders AND $1000+ spent" has 12 people | Balance criteria to reach meaningful volume |
| Overlapping segments | Customer in 3 segments gets 3 offers | Use mutually exclusive criteria or priority logic |
| Set and forget | Segment criteria no longer relevant | Review segments quarterly |
The Precision Problem:
Even the most carefully crafted segment treats all members identically. A "returning customer" segment includes the person who visited 5 times and is about to buy AND the person who bought once a year ago and is just browsing. Same segment, same discount. But wildly different intent. This is the fundamental limitation of static segmentation.
The Limitation of Static Customer Eligibility
This is where the trade-off becomes clear. Segments target WHO. But discounting is about WHO NEEDS IT RIGHT NOW.
Past Behavior vs. Current Intent
Customer segments are based on HISTORY. What they have done. Purchase decisions happen in the PRESENT. What they are doing now. A customer's past purchases do not tell you if they need a targeted discount Shopify offer TODAY.
Two customers in the same segment can have completely different intent:
| Customer | Segment Match | Current Behavior | Needs Discount? | What Happens |
|---|---|---|---|---|
| Sarah | Returning (5 orders) | Added to cart, heading to checkout | NO - dedicated buyer | Gets 15% off anyway = Margin lost |
| Mike | Returning (2 orders) | Browsing 8 min, viewed 6 products | YES - hesitant visitor | Gets 15% off if he notices = Maybe converts |
| Lisa | Not in segment (0 orders) | First visit, 10 min on site, exit intent | YES - needs nudge | Gets nothing = Lost opportunity |
The Dedicated Buyer Problem
"Dedicated buyers" are visitors who WILL purchase without any incentive. They have made their decision. A discount just reduces your margin. Static segments cannot distinguish dedicated buyers from hesitant visitors.
The Hidden Cost of Segment Discounts:
Your store has 1,000 returning customers this month.
• 600 were "dedicated buyers" - they would have purchased at full price
• 400 were "hesitant visitors" - some needed a nudge, some left anyway
With "15% off returning customers":
• 600 dedicated buyers get unnecessary discount = $9,000 margin lost (avg $15 discount)
• 400 hesitant visitors get discount = some convert, some still leave
The question: What if you could give discounts ONLY to the 400 hesitant visitors?
The Real-Time Gap
What segments CAN'T tell you:
- Is this visitor about to leave the site?
- Have they been browsing for an unusually long time?
- Did they add to cart but now seem stuck?
- Are they comparing products indecisively?
- Have they returned after abandoning a previous session?
The Data Gap:
Shopify segments answer the question "Who is this customer?" based on their history. But the real question for discounting is "Does this visitor need an incentive right now?" That is a behavioral question. And it requires real-time data, not historical records.
If you have ever wondered whether there is a way to target customers based on what they are DOING rather than just who they ARE, there is. Growth Suite approaches customer targeting from a fundamentally different angle: intent-based behavioral detection.
How to Exclude Specific Products & Collections from Shopify Discounts
Shopify's native exclusions have a hidden flaw: customers discover excluded products at checkout. Learn native methods and Growth Suite's transparent approach where exclusions show on product pages.
Growth Suite's Intent-Based Behavioral Targeting
An alternative approach that targets WHAT visitors are doing, not just WHO they are.
Why Intent-Based Targeting Is the Evolution of Customer Eligibility
Traditional targeting looks at customer IDENTITY. Purchase history. Segment membership. Intent-based targeting looks at visitor BEHAVIOR. Real-time actions on your site. Growth Suite tracks behavior as it happens, not just historical records.
From "Who They Are" to "What They're Doing"
| Traditional (Static) | Intent-Based (Dynamic) |
|---|---|
| "This customer has purchased before" | "This visitor is showing exit intent right now" |
| "They're in the VIP segment" | "They've been browsing for 8 minutes without adding to cart" |
| "They subscribed to email" | "They returned after abandoning checkout last visit" |
| Same discount for all in segment | Discount calibrated to behavior intensity |
The Growth Suite Philosophy
Growth Suite operates on five core principles for Shopify customer targeting:
- Observe before acting: Track visitor behavior in real-time
- Predict intent: Analyze patterns to identify who will buy vs. who needs help
- Protect dedicated buyers: Never discount someone ready to purchase
- Target hesitant visitors: Offer incentives only to those showing uncertainty
- Personalize dynamically: Calibrate discount depth to engagement level
The Behavioral Offer System:
Growth Suite is a Behavioral Offer System that watches each visitor, detects who plans to wait or leave, and makes a limited-time discount offer ONLY to those identified as hesitant. Dedicated buyers complete their purchase at full price. The result: higher conversions WITHOUT margin erosion from unnecessary discounts.
How Growth Suite Identifies Visitor Intent
This is where targeted discount Shopify strategies get smarter. Growth Suite monitors real-time behavior to classify visitors as dedicated buyers or hesitant visitors.
Real-Time Behavioral Tracking
What Growth Suite monitors:
- Visit timestamps and session duration
- Products viewed and time spent on each
- Add-to-cart actions and cart modifications
- Checkout initiation and abandonment
- Page navigation patterns
- Return visits and previous session behavior
- Device type (desktop vs. mobile)
- Exit signals and hesitation patterns
Dedicated Buyer vs. Hesitant Visitor Detection
| Behavior Signal | Dedicated Buyer | Hesitant Visitor |
|---|---|---|
| Session time | Short, efficient | Extended, wandering |
| Products viewed | 1-3, decisive | 5+, comparing |
| Add to cart speed | Quick | Delayed or none |
| Cart behavior | Stable | Adding/removing |
| Checkout start | Immediate | Hesitant or abandoned |
| Exit signals | Proceeds to payment | Shows exit intent |
Dedicated Buyer Result: NO discount offer shown. They buy at full price.
Hesitant Visitor Result: Triggered discount offer personalized to their behavior.
Advanced Behavioral Criteria
Growth Suite's targeting options include:
- Visitors who added to cart but didn't checkout (last visit): Returned browsers who showed interest but didn't convert
- Visitors returning after X days: Someone who left and came back (e.g., > 2 days later)
- Visitors on specific devices: Mobile users may have different conversion barriers
- Time-on-site thresholds: Extended browsing suggests indecision
- Page depth criteria: Viewed many products but no action
Context Over Segments:
A returning customer discount Shopify segment sees all returning customers identically. But a returning customer who has been on your site for 30 seconds and added to cart is NOT the same as one who has been browsing for 12 minutes without action. Behavior-based targeting sees the crucial difference.
The "Dedicated Buyer" Protection Philosophy
This is the core margin-protection concept that makes Growth Suite different from standard discount for customer groups approaches.
Why Not Discount Everyone?
Most discount strategies treat all eligible customers the same. "15% off for returning customers" means everyone in segment gets 15% off. This includes visitors who were ALREADY going to buy. Those "dedicated buyers" represent pure margin loss.
The Math:
If 60% of your returning customers are "dedicated buyers" who would purchase anyway:
• 1,000 returning customers use your discount
• 600 were dedicated buyers (wasted discount)
• At $100 AOV and 15% off, that's $9,000 in unnecessary discounts
Your "loyalty" program costs you $9,000/month in margin.
Growth Suite's Core Innovation
The Philosophy: "The best discount is the one you DON'T give to someone who was already going to buy."
How It Works:
- 1. Visitor arrives at store
- 2. Growth Suite begins tracking behavior
- 3. Patterns are analyzed in real-time
- 4. If dedicated buyer detected: No offer shown, full-price purchase
- 5. If hesitant visitor detected: Personalized offer triggered
- 6. Only hesitant visitors see discounts
- 7. Margins are protected on every dedicated buyer transaction
| Visitor Type | Shopify Segment Approach | Growth Suite Approach |
|---|---|---|
| Dedicated buyer | Gets 15% off (margin wasted) | No offer, buys at full price |
| Hesitant visitor (in segment) | Gets 15% off (if in segment) | Gets personalized offer |
| New hesitant visitor | Gets nothing (not in segment) | Gets personalized offer |
Margin Protection Built-In:
Growth Suite's philosophy is not "never discount." It is "discount intelligently." Hesitant visitors who need a nudge receive offers. Dedicated buyers who have already decided complete their purchase at full price. Your margins stay intact while conversions increase.
Dynamic Offer Personalization - Calibrating to Intent Level
Not all hesitant visitors are equal. Someone who browsed 5 products is different from someone who browsed 15. A visitor who added to cart and hesitated is different from one who never added. One-size-fits-all discounts leave value on the table.
Growth Suite's Dynamic Calibration
| Visitor Profile | Engagement Level | Discount Strategy |
|---|---|---|
| High interest + not dedicated | Viewed many products, engaged deeply | Lower discount, shorter duration |
| Low engagement + not dedicated | Browsing loosely, showing exit intent | Higher discount, longer duration |
| Cart abandoner returning | Previously showed strong intent | Moderate discount, personalized |
Example Configuration:
Merchant Settings: 5% to 15% off, 10 to 25 minute duration
Visitor A: High product interest, multiple page views, added to cart
• Assessment: Needs small nudge
• Offer: 5% off for 10 minutes
Visitor B: Low engagement, quick browse, exit intent detected
• Assessment: Needs stronger incentive
• Offer: 15% off for 25 minutes
Precision Discounting:
Dynamic calibration means you are never giving more discount than necessary. A visitor who just needs a small push gets 5%. One who needs significant convincing gets 15%. No blanket discounting. Each offer is calculated to what that specific visitor needs.
Max Number of Offers - Preventing Offer Fatigue
Showing offers repeatedly trains customers to expect discounts. "Just wait and they'll show me a deal" becomes learned behavior. Repeated offers feel spammy and damage brand perception.
Growth Suite's Solution: Max Number of Offers
Max Number of Offers lets you limit how many times a single visitor can receive an offer within a defined period.
Settings Example:
- "Show offer maximum 1 time per visitor"
- "Show offer maximum 2 times per visitor"
- "Show offer maximum 3 times per visitor"
How It Works: Visitor triggers offer criteria (hesitant behavior detected). Offer is shown. Counter is set for that visitor. On future visits, if max reached, no new offer even if criteria met. This preserves the offer's perceived exclusivity.
One Real Offer:
Growth Suite's core philosophy includes making ONE real offer per visitor. If they do not take it, they are likely not going to convert with repeated offers either. Limiting offers preserves urgency and prevents "discount expectation" conditioning.
Cooldown Period - Protecting Brand Perception
Even if a visitor qualifies again, showing an offer immediately cheapens the brand. "I just got 10% off yesterday and today too?" = brand feels desperate. Strategic spacing makes offers feel special, not routine.
Growth Suite's Cooldown Feature
Cooldown Period enforces a waiting period after showing an offer before that visitor can see another one.
| Cooldown Period | Best For | Rationale |
|---|---|---|
| 7 days | Fashion, accessories | Frequent browsing expected |
| 14 days | Home goods, beauty | Moderate purchase cycle |
| 30 days | High-ticket items | Long consideration cycle |
Scarcity Through Timing:
The cooldown period creates natural scarcity. Visitors cannot "game" the system by returning repeatedly for discounts. This protects your brand from feeling like a perpetual sale and maintains the perceived value of your offers.
Automatic Discounts on Shopify: The Complete Pros & Cons Guide
Frictionless checkout sounds perfect—until you realize you're discounting dedicated buyers who would pay full price. Learn when automatic works, when it hurts, and the smarter alternative.
Shopify Native Segments vs. Growth Suite Intent-Based - Complete Comparison
| Capability | Shopify Native | Growth Suite |
|---|---|---|
| Targeting basis | WHO they are (history) | WHAT they're doing (real-time) |
| Data source | Purchase history, tags | Live session behavior |
| Dedicated buyer handling | Receives discount (wasted) | No offer (margin protected) |
| Hesitant visitor handling | May or may not be targeted | Specifically targeted |
| Discount personalization | Same for all in segment | Calibrated to behavior |
| Offer frequency control | None native | Max offers + Cooldown |
| New visitor targeting | Limited (no history) | Full (behavior-based) |
| Setup complexity | Manual segment creation | Automated detection |
Decision Guide
Use Shopify Native Segments When:
- Running email campaigns to specific customer groups
- Creating loyalty tiers with static benefits
- Offering wholesale/B2B pricing
- Targeting by geography or customer tags
- You want customers to know their "status" (VIP, Gold, etc.)
Use Growth Suite Intent-Based When:
- Goal is CONVERSION of hesitant visitors
- You want to protect margins on dedicated buyers
- Targeting new visitors with no purchase history
- Running trigger campaigns based on behavior
- You want "set and forget" automated targeting
Not Either/Or:
Shopify segments and Growth Suite solve different problems. Use segments for communication and loyalty structure. Use Growth Suite for real-time conversion optimization. They complement each other.
Increase profits, not just sales.
Growth Suite detects hesitant visitors and delivers unique, smart discounts only when needed. Stop giving money away to everyone.
Frequently Asked Questions
What is customer eligibility in Shopify discounts?
How do I create a discount for returning customers only in Shopify?
What is the difference between customer segments and specific customers in Shopify?
Can I create a VIP customer discount in Shopify?
What is intent-based targeting for discounts?
What is a dedicated buyer and why shouldn't they get discounts?
How does Growth Suite know if someone is about to leave?
Can I limit how often customers see discount offers?
Should I use customer segments or intent-based targeting?
How does dynamic discount calibration work in Growth Suite?
References & Sources
- [1] Customer Segmentation for E-commerce - Shopify Help Center (2024) View Source →
- [2] The Psychology of Personalization in E-commerce - Harvard Business Review (2024) View Source →
- [3] Behavioral Targeting and Conversion Optimization - Nielsen Norman Group (2023) View Source →
- [4] Customer Lifetime Value and Discount Strategy - MIT Sloan Management Review (2024) View Source →
- [5] E-commerce Conversion Rate Benchmarks - Baymard Institute (2024) View Source →
Ready to Implement These Strategies?
Put this knowledge into action with Growth Suite. Start converting more visitors into customers with smart, AI-powered campaigns.
Muhammed Tüfekyapan
Founder of Growth Suite
Muhammed Tüfekyapan is a growth marketing expert and the founder of Growth Suite, an AI-powered Shopify app trusted by over 300 stores across 40+ countries. With a career in data-driven e-commerce optimization that began in 2012, he has established himself as a leading authority in the field.
In 2015, Muhammed authored the influential book, "Introduction to Growth Hacking," distilling his early insights into actionable strategies for business growth. His hands-on experience includes consulting for over 100 companies across more than 10 sectors, where he consistently helped brands achieve significant improvements in conversion rates and revenue. This deep understanding of the challenges facing Shopify merchants inspired him to found Growth Suite, a solution dedicated to converting hesitant browsers into buyers through personalized, smart offers.