To boost eCommerce business outcomes and improve the online store performance, store owners would prefer to apply beneficial opportunities and try their best to provide diversified shopping options.
One of the real powerful ways to scale up sales, raise customer retention, and increase brand loyalty is STORE CREDIT benefits.
More than just an additional payment option, store credit supports to grow store revenue and encourage customers’ engagement.
Nowadays, there are tons of different store credit forms and be applied by many successful retailers.
In this article, we intend to define how the store credit benefits both customer and store owner and recognize how that smart store credit help to create a successful online business.
How does Store Credit work?
Store credit – is known as the special store currency that can only be used in some specific cases as purchasing or refunding at a single store or group of stores within the brand’s network.
It can’t deny that store credit can save you money, reduce losses, time, and efforts.
Offer many appealing discounts and promotions with store credit. Such as 20% OFF for the second purchase, save 100 store credit in your first purchase or 15% OFF in-store or online purchases. Others offer loyalty rewards, including cashback or points back into customers’ accounts with the retailer or elsewhere to use toward purchases.
All of those examples significantly enhances customer retention and encourages clients to spend more by awarding promotional credit amount.
Thank customers for shopping in your store with credit and build their loyalty. Usually, store credit converts unexpected refunds into new purchases!
Types Of Store Credits & How it benefits your store.
Store credit retailers all over the world implement the following options:
- Store credit points. a powerful tool to increase customer loyalty and make the process of purchasing and refunding easier and faster. By using Store Credit Points, customers can pay for their orders & administrators can offer also store credits instead of cash refunds.
- Returns and exchanges. When customers need to return/exchange goods, this kind of store credit is offered in addition to a full refund and turn refunds back into revenue.
- Gift cards. The customers on your store can create their own gift cards with different pricing, image, quantity, etc. Moreover, they can personalize and customize the gift card to be more eye-catching and dynamic with drag n drop features and appealing design. Once the custom made gift card is a purchase, a code and a greeting message will then immediately be sent to the receiver of the gift card.
- Loyalty reward. An automatic point earning and spending system. It’s a comprehensive solution to enhance customers’ loyalty.
Using the store credit system brings obvious benefits:
- Reduce losses, time, and efforts spent on the refund process
- Satisfy customers having returned products with store credits
- Enhance customer experience and encourage them to buy more with store credits as an award.
How Does The Store Credit Empower E-Business – its outstanding features?
- The convenient earn and buy store credit with ease.
It is easy for the customer to buy Store Credit by themselves by choosing the credit value section. They can charge their account one time only but use for many future purchases. Furthermore, on a special occasion, admin can give the customer a small gift by store credit also. You can motivate them to hold a credit on your store by reducing credit rate. For instance, customers can get 100 credit by only paying $85 if the credit rate is 0.85.
- Use the credit to pay for products anytime
By buying credit ahead and owning credits on your site, customers can pay for products anytime they want.
For example, your client charged his account $200 because of his interest in your store products, but then changing his mind and do not place the order. BUT! with Magento 2 Store Credit, your customer has already paid, you have already taken the money and now this amount was saved for his future orders. Moreover, this awesome feature encourages customers to come back for shopping and save their time by using directly the Credits amount during the checkout process.
- Customers can decide how much to spend effortlessly
The customer can decide how much credits to spend on buying products and services when they had some credit in their account. Simply choose using store credit to checkout, insert the number of credit they want to spend and they can also remove or edit that amount with ease.
- Spend credit on tax and shipping fees easily
Moreover, Magento 2 store credit allows you to use credit to pay for tax or shipping fees. It will suggest automatically an optional choice for customers.
- Share credit with friends
Moreover, your customer can use Magento 2 Store credit to share credit with their friends in the blink of an eye as a present or send a credit amount he owes to them. To create the process, clients just simply complete the form:
– Recipient’s email address
– Credit amount requirement
– A detail message to inform your friends about the amount
Once their friends received credits, they will start using that amount on shopping in your store and then automatically become your new customer.
- Restore redeemed credit automatically when the order is refunded
After paying the orders but customers change their mind, request for refund and get their money back. With Magento 2 Store Credit Extension, it is easy for both customers and store owners to face this situation. The store owner can resend directly the credits to customers account and these redeemed credit amount is restored back automatically.
Why Is It Worth To Provide Customers With Store Credits?
Benefits For Retailers
Boost loyalty and customer retention
Grant store credits to motivate your customers to shop in your Magento store. You can add a custom credit amount from the admin panel. Enable customers to pay for products with store credit in full or partially. Allow them to use the credit to cover taxes and shipping costs. Use it with One Step Checkout to timely remind your customers of one more payment option and ensure a seamless process.
Motivate customers to spend more
For someone, adding store credit functionality to encourage customers to spend extra money seems illogical. However, it works well. When stores propose a reasonable return policy, the buyers enjoy the idea to spend more money. Therefore, using the store credit for allowing more flexible returns, you let your customers feel comfortable being with you.
Decrease losing revenue to returns
Returns and exchanges are surely not the most pleasant events for store owners. They want to provide customers with a positive experience and to be flexible but lost revenue.
Store credit will help you to avoid losing revenue to returns and turn the transactions into exchanges instead, making e-business more customer-friendly.
Benefits For Customers
Your customers have a chance to purchase Store Credits right from your Magento 2 website. Buying the credit, recharging it, and making purchases! And that’s it.
Share Store Credit with friends
With the smart Credit extension for Magento 2 stores, your customers are able not only use their credit balance to pay for goods and overview all transactions any time later but also to share credit balance with friends. To make this, customers specify the recipient’s email and the credit amount.
After receiving the credit, friends may start spending their balance on any products in your store. Looks beneficial for all parties, right?)
Get valuable statistics
Reports of Store Credit are aimed to determine how effective your credit program is. The statistical visualization of credit performance gives customers the opportunity to get quick and valuable insights.
To Sum It Up
The business value of the Store Credit benefits system is obvious. This is the case when a smart and powerful extension equally benefits store owners and their customers.
- As a store owner, you can add or subtract credits, view transaction history, set min/max credits, send notification emails to customers, etc.
- Your customers are empowered to manage credits, monitor the balance and the history of transactions, share the credits with other people, and more.