November 22, 2024
OneLoyalty Now Supports Shopify Store Credit As A Reward Option
Returns are a challenge any eCommerce store has to deal with in day-to-day operations. Thus, we are thrilled to introduce the Store Credit feature to OneLoyalty to help our merchants convert this challenge into a growth opportunity.
In this blog, we will walk you through all you need to know about this new feature of ours and how it can benefit your sales and retention in all possible aspects.
A glance at what we’ll cover today:
- Shopify store credit 101
- Why should brands set up store credit as a reward option?
- How to set up store credit as a reward option with OneLoyalty?
- Tips to make the most out of Shopify store credit for your customer retention
What Is Shopify Store Credit and Why Is It a Thing?
Shopify store credit is a balance that merchants issue to customers as an alternative to cash refunds for returns or as a reward—which customers can use at checkout like in the screenshot below:
Over recent years, a growing number of Shopify merchants have integrated store credit into their business models. Recognizing this trend, we conducted a survey with some OneLoyalty users using Shopify store credit, and most of our clients agree that store credit helps them:
- Increase customer retention: Store credits incentivize customers to make future purchases, fostering long-term loyalty.
- Keep revenue within the business: By offering store credits for returns instead of cash refunds, businesses can maintain better control over their finances and cash flow.
- Reduce return fraud and abuse: Store credits can help mitigate return fraud and abuse, which are significant challenges for eCommerce businesses.
Therefore, we are excited to introduce a key feature of OneLoyalty — the ability to set Shopify store credit as a reward option.
Why Set Up Shopify Store Credit As A Reward Option?
With the benefits of store credits mentioned above, integrating store credit as a reward option can significantly enhance repeat sales, customer engagement and loyalty.
With OneLoyalty’s seamless integration with Shopify, merchants can effortlessly enable customers to earn points through purchases or referrals and then redeem these points for store credit.
For example, customers might earn 10,000 points through purchases or referrals, which can then be exchanged for $100 in store credit. This credit can be applied at checkout to reduce the order total, encouraging repeat business and deepening customer loyalty.
Why Set Up Shopify Store Credit As A Reward Option?
With OneLoyalty, you can configure Shopify store credit as a reward option quickly and easily as following:
- Click Loyalty program tab > Click the Manage rewards button
- Navigate to the Store credit tab > Click Add reward
- Afterward, you can configure your store credit reward settings and expiration dates (e.g. 1,000 points = $100 store credits, expiring in 1 year)
Tips To Use Store Credit To Your Loyalty Program’s Advantages
As promising as it might sound, unless you structure your store credit scheme properly, it will likely fail to drive the results you desire. So, here are some battle-tested tips to make store credit a powerful asset in your loyalty program and customer retention strategy:
- Set an optimal conversion rate: Offer a balanced reward, such as $1 in store credit for every 100-200 points, to keep it attractive yet sustainable for your business.
- Define a clear expiration policy: Set an expiration period (e.g., 6 months - 1 year) to create urgency and encourage customers to return and use their credits.
- Promote store credit availability & benefits: Send reminders via email or push notifications to encourage customers to use their earned store credit.
- Leverage store credit for special promotions: Offer limited-time bonus store credit during seasonal sales to boost engagement and conversions.
Alexandre Le
I'm Alexandre Le - a marketer with 5+ years of hands-on experience in the eCommerce industry. I want to use my expertise and personal perspectives to produce insightful blog posts that help online store owners to launch, run, and scale up their businesses successfully.
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