Automatic Discounts For Tagged Customers in Shopify

August 17, 2025

Jak

Shopify development & Ai Automation specialist

Shopify just made it easier than ever to reward your best customers. With the latest update, you can now create automatic discounts for specific groups of customers—without needing a third-party app. One of the most powerful ways to use this is by applying discounts to tagged customers.

Let’s break down exactly how you can set this up.

Why Use Tagged Customers?

Tags are one of the simplest ways to organize your customers. You can use them to identify:

  • Active subscribers (customers tagged when they subscribe)
  • Wholesale buyers (tagged as wholesale)
  • VIPs or loyalty members (special tags added manually or via automation)
  • Repeat buyers (customers who’ve purchased multiple times)

By creating a segment based on these tags, you can make sure that only those customers get your discount.

Step 1: Create an Automatic Discount

  1. Log in to your Shopify dashboard.
  2. Head over to Discounts.
  3. Click Create Discount.
  4. Choose a type, for example:
    • Amount off products (like 20% off a collection)
    • Buy X, Get Y (perfect for free gifts)
  5. Switch the discount method from Code to Automatic.
  6. Set your discount value (fixed or percentage).
  7. Apply it to the right products, collections, or variants.

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Step 2: Create a Customer Segment Using Tags

This is where tags come into play.

  1. Go to Customers in your Shopify dashboard.
  2. Click Segments → Create Segment.
  3. Use Shopify’s query builder to create a group based on a tag. For example:
SQL
customer_tags CONTAINS 'active_subscriber'
  1. Save your segment and give it a clear name (e.g., “Active Subscribers” or “Wholesale Buyers”).

Step 3: Assign the Segment to Your Discount

Now, head back to your discount settings:

  1. Scroll down to the Customer Eligibility section.
  2. Select the segment you created (like “Active Subscribers”).
  3. Save your discount.

Step 4: Test Your Setup

To make sure everything works:

  • Log in using a customer account that has the correct tag.
  • Add an eligible product to your cart.
  • The discount should apply automatically at checkout.

Watch the Tutorial

If you’d like to see this process in action, I’ve also made a step-by-step YouTube tutorial showing exactly how to set up automatic discounts for tagged customers.

Why This Matters

This feature is a game-changer because:

  • You can reward loyalty without apps.
  • Discounts feel more personalized.
  • You save on app subscription fees.
  • It’s fully native inside Shopify.

How can I offer automatic discounts to signed in members?

To offer automatic discounts to signed-in members in Shopify, first create a customer segment (like “members” or “loyalty group”). Once the segment is ready, create an automatic discount in the Shopify admin and set the eligibility to that segment. As long as the customer is signed in and part of the segment, Shopify will apply the discount automatically at checkout.

How to Create Automatic Discount for Specific Customer(s)

In Shopify, you can create an automatic discount and then set the customer eligibility to a specific segment. For example, if you tag a customer as “VIP” or “Wholesale,” you can build a segment for that tag and assign it to the discount. Shopify will then apply the discount automatically whenever those tagged customers are signed in and shopping.

Is there no option to give subscribers an automatic discount?

Yes, Shopify now allows you to give subscribers automatic discounts without using third-party apps. You can create a customer segment based on subscription tags (like “active subscriber”) and then assign that segment to an automatic discount in your Shopify admin. This way, only your subscribers will receive the discount automatically at checkout.

How to create tiered discounts for VIP customers in Shopify

In Shopify, you can create tiered automatic discounts by setting up multiple discount rules and assigning them to a VIP customer segment. For example, you might create one automatic discount for 10% off orders over $100, another for 20% off orders over $200, and so on. Then, in the Customer Eligibility section, choose your VIP customer segment. Shopify will automatically apply the correct discount tier when a signed-in VIP customer qualifies—no coupon codes required.