Store Credit: A Solution to Customer Retention
When you start dipping your feet into the eCommerce water, the one chunk of advice that you’ll receive from every dimension is CUSTOMER LOYALTY.
And why not, customer loyalty is the code to customer retention but what if the race of sustaining this loyalty starts hitting your revenue?
Let me put it this way:
Being in an eCommerce ecosystem to maintain healthy customer relationships, merchants look forward to providing the best customer support, best product quality and on top of all the best return-exchange policies.
Since the issues related to return-exchange is an ongoing process, working on this, many merchants find themselves under the weight. This is somehow affecting their revenue & not working in their favor even after providing the A1 services.
Here, the concept of STORE CREDIT comes to the rescue!
📃 Further Reading
Acquire customers with customer loyalty programs- Explore!
What is Store Credit?
Offering your customers value for making a purchase on your store is generally said to be STORE CREDIT.
Store credit can be used on one particular store only (the one who has provided it), i.e., it can’t be used to make a purchase on different brands.
Store credit is a powerful tool to boost customer retention and revenue. Many thriving retailers like Amazon, Wallmart, etc. have implemented this strategy in their stores.
Customer Retention
Store credits are a great way to proffer your customers a ‘thank-you’ gesture for using your brand & letting them know that we wish to have you again!
According to IBM reports: “The more you’re tied to a brand, the more likely you are to be a brand advocate.”
This will make your customers happy and moreover, make them visit your store again for making the purchase instead of going somewhere else.
Increase Average Order Rate
By providing store credits, you can encourage your customers to purchase more and spend again on your brand. Thus hiking up your average order value.
📃 Further Reading
Average Order Value by Product Bundling- Explore!
Moreover, this is a proven fact that providing store credits increases the number of visitors to your store.
Store credits act like just another online payment option. Thus, providing your customers flexibility to pay using the eWallet.
Don’t lose out on revenue
As I mentioned earlier, the issues related to return-exchange is an ongoing process, working on this, many merchants find themselves under the weight. This is somehow affecting their revenue.
Just to provide your customers with the most satisfying experience, you might fall your revenue down if you don’t play smart.
Many savvy merchants use the store credit functionality to ease the burden of returns on their eCommerce store. So, use store credits to partial or fully-pay for returned orders on your store. This, you’ll get the hold on the revenue as your customers will definitely make another purchase. Giving you the surety that the amount given will inevitably return.
Moreover, the refund process will be faster than before as this way no receipts or other documentation will be required.
📃 Further Reading
Know about Sales Funnel- Explore!
Ways to provide store credits to your customers
Store credits can be given on the following moments:
- For word-of-mouth marketing or for referring your brand.
- To compensate for any poor-service offered to your customer.
- During off-season to encourage your customers to purchase.
- To reduce the abandoned cart rate.
- To refund for returns or exchange on your store.
🔎 Looking for a solution?
One such app that is perfect for this scenario is Wallet Management by Webkul. Hands down, it provides the best e-Wallet facility with store credit functionality. From paying for the orders to transferring money from one wallet to others, it has got all. Apart from this, the Wallet Management app has a step refund management system and a lot more!
Get the app: Click here.
User Guide: Explore!
💡 Need Help?
Moreover, you can drop your query at shopify@webkul.com or raise a ticket at Webkul UV Desk.
Until next time. 👋