Learn Actionable Ways To Use The Shopify Store Credits Feature To Boost Engagement And Profit
Imagine you’re driving a bus waiting at a depot to fill up the bus with passengers.
But while some passengers are hopping on your bus, others are leaving it—maybe they didn’t want to wait, or perhaps they found another bus leaving earlier.
As a result, you cannot fill up your bus and cannot leave.
Now imagine the bus is your Shopify business, the passengers, your customers. You need to retain them, or your bus (business) will remain comfortably parked where it is!
In short, you require customer retention strategies.
One of the best customer retention strategies is Shopify store credits or reward/loyalty programs.
In this article, we take a deep dive into maximizing the returns from your store credits program.
Store credits are a type of customer loyalty program. Store credits, like reward points or loyalty points, are given to customers in return for various actions.
For example, store credits are often given to customers when they return a product—instead of returning the amount paid in cash, add store credits to their Shopify customer account page. In addition, customers can use store credits in the future to make purchases.
Brands give store credits for many different actions. For example, when new customers register on the Shopify customer account page, as a gift on customers’ birthdays and anniversaries, for referring friends, etc.
eCommerce stores use store credits as a strategy to enhance customer experience. And this feature helps in many different ways. Here are some benefits of Shopify store credits:
When you give customers something such as store credits or reward points in return for different actions, they feel good about your brand. They feel satisfied knowing they can return products and receive store credits that can be used later.
Store credits are also a marketing strategy to increase customer engagement. You can use store credits in different ways to keep your customers engaged throughout the customer lifecycle. By giving store credits, you can also increase opportunities to send messages to customers, increasing engagement.
When brands mention the store credits feature in their returns policy, customers feel more secure and confident about purchasing from them. In addition, customers feel assured that they will receive credit points if they return a product.
Referral programs have a high ROI. Referred customers are 18% more loyal to brands than customers acquired via other ways. Combining your store credits program with your referrals program could be one of the best customer retention Shopify strategies.
Here are some strategies around store credits and referrals:
- Offer store credits to customers who refer other potential customers
- Credit the points to their account only when the referred customers make their first purchase (this way, you can avoid losing money)
- You can also offer store credits to the new (referred) customer when they sign up
60% of consumers prefer to make conscious purchases that are sustainable, ethical, and environmentally friendly. One way to enhance your Shopify store credits program is to combine it with one or many charitable causes. When you do so, your customers feel good about engaging, transacting, and earning credit points from you.
Here’s how you can combine a social cause within your store credits program:
- Allow customers to donate their store credits to a charitable organization of their choice
- Collaborate with multiple charitable organizations supporting different causes
- Promote the social cause angle so customers know about it
Consider this: 54% of people are unlikely to purchase from brands with unclear or poor return policies.
One of the most common reasons to give store credits is when customers return a purchased product. Instead of returning the amount to the customer, eCommerce stores replace it with store credits. The credit gets saved in the customers’ account and can be used against future purchases.
But to be able to do this, you must mention this clause in your returns policy. So it shouldn’t come as a surprise to customers at the time of returns.
Here’s how Shopify store credits help:
- It provides flexibility to customers
- It gives customers time to make purchases in the future
- Customers feel more secure and confident about making purchase if they know they can return products and receive store credits
Another way to use store credits and improve customer retention for your Shopify store is when you want to bring back inactive customers to your site.
Here’s the hard truth: your customers are also customers of other brands. And all brands are vying for their attention. So if your customer engagement tactics fail to keep them hooked to your brand, they will go to other brands. But all is not lost.
When you notice inactive customers in your database, you can strategically use store credits to bring them back to your Shopify store.
- Send reminders to customers about the store credits accumulated on their Shopify customer account page
- Rekindle their interest in your brand by adding bonus store credits to their account
- Give them ideas about how they could use their store credits. For example, they can use store credits to buy gifts for their loved ones
If you make it difficult for customers to earn store credits, they could lose interest in the program. So how do you make it easy for them? By creating multiple opportunities to earn store credits. For example, you can offer store credits when,
- Customers sign up on your Shopify customer account page
- For every purchase made
- When customers return a purchased product
- On birthdays and anniversaries
- For referrals
- Extra store credits during sale time
- Real-time store credit offers during annual sales
- For sharing about products on social media
- For following, commenting on your social posts
- For product reviews and feedback
- Monthly store credits
When you create more opportunities for customers to earn credit points, they stay more engaged. In addition, they’ll have more store credits to use. This means more purchases and customers staying with you for the long term.
Applying gamification is another excellent way to improve your store credit program engagement. Games attract people because they are challenging and stir a dopamine surge. Including tiers or VIP features in your Shopify store credits program boosts participation and promotes return business.
Customers would work to get to the top tier, so they would transact with your brand frequently. Moreover, customers get a sense of belonging when they attain a higher level. They would want to stick with your brand for the long run because they feel a sense of accomplishment and belonging.
No matter how simple the mechanics of your store credits program are, there may still be times when your customers have questions. They could want to know how to utilize their points for other things or how to redeem them, for instance. This is where excellent customer support comes in to help you improve customer retention. Here are some tips:
- Let customers know they can reach out to you in case of queries
- Respond to their questions fast and with proper answers
- Be helpful via your customer service and make their experience pleasant
- Use multiple channels to provide customer support
Customers will only value your store credit program if it is a seamless experience. By utilizing technology wisely, you can create the kind of ease and experience that customers demand.
For example, brands provide an automated omnichannel experience to customers. First, show notifications of store credits customers receive on your app on their phones. Then, send them a quick SMS and a WhatsApp message.
You need a comprehensive Shopify store credits app to provide top-notch digital experiences to savvy customers.
Today’s customers are used to personalized experiences from brands. And so, they demand it. Adding a personal touch is one way to stand out when so many firms offer similar store credit programs.
For example, if you’re a clothes retailer, you might examine customer behavior and use that information to entice customers to shop in various categories based on their preferences and requirements. For example, if a customer only purchases dresses, you might offer them store credits on accessories to get them to shop in other sections of your store.
Moreover, you can send personalized messages. For example, “Hey Rebecca, you have 550 credit points in your account. Use it to buy accessories on your wishlist.”
If you think smartly, you can improve customer retention via Shopify store credits—you’ll have to encourage customers to use store credits more. Here are some strategies to boost the usage of store credits:
- Reduce the minimum credits needed to make purchases
- Persuade customers to pay via store credits during the checkout process
- Make them use only a limited amount of store credits for one purchase. For example, ‘You can pay up to $200 via store credits. This way, they will always have some amount of store credits remaining in their balance, and so, they’d definitely come back
- Show their available store credits balance on the ‘Thank You’ page after they make purchases. This will work as a reminder
As you develop all the aspects of your customer experience, it’s time to pay special attention to Shopify store credits. A feature that seems so simple can help you boost customer retention in many different ways.
Store credits are a fantastic way to thank consumers and give them extra value, but we sometimes need to do it better. You need customer data to understand your customers better to have a well-planned store credit structure.
Additionally, if you use store credits in your Shopify business, you should employ clever and practical techniques to help it develop and thrive.
Flits – an efficient Shopify store credits app – fills that demand by bringing all the components and functionality required to build up a credits program into the customer account page of your Shopify business.