Store Credit is a monetary value you provide to your loyal or potential customers that can only be spent on your store. It links your customers directly to your store and often helps increase revenue. Customers asking for refunds is an inevitable part of the ecommerce industry. Hence, you can use store credits as shopify partial refunds to transform customers’ disappointments into returning orders.
The primary benefit of using store credit is that your business does not lose money on returns and refunds. An equal amount of cash refund can be swapped for store credit gift cards and coupons. Sounds interesting and beneficial, doesn’t it? In this article, we will inform you about how you can use a store credit app as a revenue-driving power for your shopify store. But first, let’s have a quick look at how a store credit actually works.
Understand How Does A Store Credit App Work
You can use shopify store credits in countless ways to limit the cash outflow from your store. Let’s see what the different processes and formats are for using a store credit.
- You can use it for refunds or returns when cash refunds are not available, and customers prefer it.
- Store credit can be provided as a promotional offer as a gift card or coupon card for a specific time.
- You can provide store credits as points or coins, which customers can collect with each purchase and later spend once a certain amount is reached.
- Store credits often have limitations, such as customers not being able to transfer their gift card or coupon to anyone else.
- To use store credits, customers are just required to provide the coupon code or gift card at the time of their next purchase, and the specific amount is reduced from the total bill.
Different Ways To Use Store Credits To Increase Your Sales and Revenue
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Keeps The Cash Within Your Store
When you choose to provide complete cash refunds to the customers, the money leaves your business. Also, it does not offer any guarantee that the customer will return to your ecommerce platform for a purchase. On the other hand, when you opt to return or provide shopify partial refunds through store credit, it keeps the cash within your ecosystem. A survey shows that more than 55% of customers redeem their store credits before expiration, which will eventually increase your revenue.
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Increases Customer Retention
When you offer store credits to your loyal customers, like gift cards or coupon codes, there is a high chance that customers will return to your store for a purchase. It increases the customers’ engagement with your store, and they click on different pages and products available in your store. In this way, there is a 50% chance that customers will buy more products from your store. Also, when customers get a specific discount on their purchases, they are likely to buy again for extra benefits.
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Prevents Fraud
Store credits not only increase your revenue but also prevent your Ecommerce store from return fraud. You may have come across various cases where the customers use your products temporarily and then return them. Many customers also send the wrong things instead of the actual product, which eventually damages your profits. Therefore, when you use store credit for returns, the monetary value stays inside your business and saves you from customers who have a fraudulent intention.
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Boosts Repeat Purchases
When your ecommerce store offers gift cards and coupon codes to customers, the chances of repeat purchases increase. Everyone wants to get the benefit of extra discounts or offers on their purchase. Hence, they try to buy products from your shopify store before the credits expire. You can also offer special offers to your loyal customers on their birthdays, anniversaries, festivals, etc. It will make them feel valued, increasing customer loyalty and retention towards your brand.
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Increases Sales
Shopify store credits directly increase your sales and revenue. When customers receive the return amount in the form of store credit, they are obliged to purchase from your store to redeem their money. You can also provide transferable store credits to your existing customers, which they can give to their friends and family. This will result in new visits and conversions to your store, increasing your sales and revenue.
The Bottom Line
Store credits are the best way to increase your sales and traffic on your ecommerce website without any loss. The amount of store credits is always the purchase value, which eventually benefits your business. Not only does it benefit our improving your sales, but it also improves customer engagement and loyalty towards your brands. Therefore, if you are looking for an easy way to drive revenue to your online business store, store credits are the best and most effective way to do it.
