Identify where you’re going wrong in store credits on Shopify and undo the mistakes

Just like how one life mistake can ruin precocious and important aspects of our life, the same thing is applicable to your online business.

One mistake can derail your business. And the worst thing is, you might not even know you’re making those mistakes.

In this article, we take a look at store credits mistakes that could be costing your business.

Recap: What are Shopify store credits?

Remember the last time you returned a product you bought online and the store added store credits in your account instead of returning cash? The credit points added in your account are called store credits.

Ecommerce stores often offer store credits for refund and return to customers. In addition, for different reasons. For example, as an incentive to shop more, just like reward points, or for every purchase you make on the site, among other reasons.

If you’re looking to add this feature on your Shopify store, Flits Customer Account Page app offers a Shopify store credits add-on feature.

Explore Flits Store Credits Feature.

Benefits of offering Shopify store credits

Call it store credits, loyalty program, or reward programs, these schemes are designed to attract, engage, and retain customers. Store credits offer benefits to both customers and retailers.

Benefits to customers:

• Can buy more products and services
• Can return products without the worry of losing money
• Feel special and exclusive
• Improve their loyalty toward the brand

Benefits to retailers:

• Attract more customers
• Boost customer engagement
• Generate more revenue
• More marketing opportunities
• Helps enhance returns process

Challenges of store credits

• Most store credits offer the same benefits so customers get bored of them
• With every brand offering points, customers may end up forgetting about it
• Store credit programs require a lot of time and resources to set up and run
• Customer likes and needs are constantly changing so brands have to keep up with the trends or lost customers

10 mistakes you might be making in your Shopify store credits

After having helped thousands of online brands set up their store credits program, here are some of the mistakes we see them making:

1. Offering a run of the mill store credits experience

Today, most ecommerce stores offer store credits. As we read in the above section, it has many benefits for customers and retailers.

But simply setting up store credits on your Shopify site isn’t enough. Many retailers make this mistake. They set up basic store credit for refund and return that is used only in product return situations.

When you don’t make store credits exciting or engaging, it stops you from using its real potential. For example, there’s so much more you can do with store credits—offer store credits on every purchase, use it as an incentive to boost customer account page sign ups, etc.

When you enhance store credits, you can reap more returns on your investment.

2. Not keeping an eye on your competitors – what they’re offering

Most eCommerce stores, including your competitors, may have a store credits feature. And your competitors’ sites might be offering much more than you are. That is why customers might be more attracted to your competitors.

In such a scenario, if you take a laid back approach, you might miss out on making your store credit program more lucrative.

Here’s what you should do:

• Do a competitor analysis
• Find out which competitors have store credit programs
• Make a note of how they’ve designed the store credit program
• For which customer activities do they offer credit points and how much
• What are the ways in which customers can use the store credits
• What kind of marketing campaigns do they design around store credits
• Learn how to give store credits on Shopify by making a note of your competitors’ store credit program

Also read: How To Determine The Value Of Store Credits You Give To Customers

3. Not offering enticing benefits

Store credits on Shopify programs are just like loyalty programs or reward programs. To provide more value to customers, you must offer maximum benefits via the program. And to offer more benefits, you will have to think creatively, so you can make your program unique.

Here are some ways to offer more benefits via your store credits feature:

• Many retailers allow customers to pay in installments. You could enable installment payments via store credits
• Another way to offer more benefits is to create many ways for customers to earn store credits—it makes customers feel they’re getting more benefits
• Allow customers to use store credits from your Shopify store for good causes. For example, run a campaign to do charity by using store credits to make purchases

4. Not gamifying store credits

Gamification of points and loyalty programs can generate 30% more engagement for eCommerce stores.

An average customer is part of around 10 to 13 loyalty or points programs. However, over 70% of them tend to lose interest within a couple of months. The result: they become inactive users.

This is because online retailers do not engage them the way they should.

And here’s where gamification comes in—gamified store credit programs can help engage and retain customers.

Here’s an example of Aliexpress—customers earn coins via various activities and convert them into discount coupons.

Source

5. You’re offering the same benefits to different customer tiers

Your Shopify store will have many different customer segments. For example, some high-value customers who spend a lot, some segments that spend an average amount, and similarly, segments that spend the least or haven’t made any purchase ever.

Now, if you offer the same store credit benefits to all these customer tiers, you’ll fail to create an engaging store credit program.

It’s psychological, we human beings are wired to feel good when we feel special or are given an exclusive experience.

Apply this thinking to your store credit Shopify program—think like your customer and then offer store credits. Here’s how:

• Create different customer segments based on how much customers spend on your store. For example, you could create three tiers—top, middle, and bottom
• Design different benefits for each tier, giving maximum to the top tier
• Be loud and clear about this so customers know—you could write about it in a dedicated store credit section on your customer account page
• You could also create online communities for the different tiers

6. Not creating a community feeling

When you create a brand community, people feel emotionally invested in your brand. As a result, they buy from you, refer your brand to their friends, etc.

But building a strong brand community requires time and careful planning. And that is why most brands ignore it.

Here’s what to do:

• Brand communities do not have a one-size-fits-all solution. The best brand communities are able to convey personality and authenticity. Hence, create something unique and personalized
• Create a formal community, for example, on social media, and let customers know so they can join it
• Organize online and offline events for community members
• Offer exclusive offers and incentives to community members
• Keep the community active by encouraging participation

7. Not making it easy to earn store credits on Shopify stores

Customers seek delightful experiences while they shop online. It’s one reason why customers instantly take a liking for some brands.

When it comes to points and reward programs, it’s one of the deciding factors customers choose certain brands over the others.

But…

If you make it difficult or confusing for customers to earn points, they could easily feel put off, and stop transacting further.

Here’s how you can make it easy for customers to earn Shopify store credits:

• To make it easy, do just that, make it easy!
• Don’t have too many rules and regulations
• Allow customers flexibility
• Provide many opportunities to earn points
• Give store credits for every purchase they make
• Create new opportunities to earn points so that the excitement remains
• Provide a consistent experience on all channels—web, mobile, and app

Let’s take the example of Flipkart. The brand offers ‘SuperCoins’ on every purchase customers make without them even knowing it. In addition, the brand allows customers to use the SuperCoins for their next purchase. The checkout process clearly highlights the accumulated points and the number of points customers would earn from each purchase.

8. Not making it easy to spend Shopify store credits

The reason customers get enticed by store credits is so that they can use them to make purchases. But many retailers do not take this factor into consideration.

For example, they make it difficult for customers to use their points—redeem points only after a specific number of points get accumulated, or put a deadline to use the points. These factors can leave customers frustrated and keep them away from buying your products.

Instead, you could make it easy for customers to use their points. Here are some tips:

• Allow customers to use as many points as they have without putting a minimum points rule
• Allow them to use as many points they want to without putting an upper limit
• Don’t have any deadline for using the points
• Allow customers to donate points for causes by running special charity campaigns

9. Not reminding your customers of the Shopify store credits

Another reason you might be missing out on maximizing returns from your store credits program is because customers may have missed seeing their store credit or have forgotten about it.

To ensure a good customer experience, you must also create timely store credit notification campaigns. At times, these campaigns are more for staying in touch and engaging customers.

Here’s what you can do:

• Create campaigns to inform and remind customers about their store credits
• Use the communication channel of their preference—email, web push, SMS, WhatsApp, etc.
• Along with a reminder, also give them ideas about how to use the store credits. For example, combine the messaging of an upcoming discount sale with this alert
• Pay special attention to your top-tier customers. For example, you could offer them free store credits just so they end up shopping more

10. Not combining it with other features or campaigns

On its own, your Shopify store credits program potential could get limiting or saturated at some point. And hence, to keep the momentum going, you could think of creative ways to combine it with other features of your Shopify site or other campaigns.

If you don’t combine your Shopify store credits program with other aspects from time to time, your customers will soon get bored and won’t have anything new to look forward to.

Here are some ideas to combine store credits with other aspects:

• Combine Shopify store credits with ‘doing good’. For example, allow customers to donate store credits to charity. That way they can make shopping meaningful
• Combine store credits with your special ads and marketing strategies. To learn how, read this blog
• Run surveys and offer store credits in return for filing your questionnaires. This way you can make customers a part of your brand as well as offer something to them

Bonus point: Not using data from store credits

For eCommerce brands, data is the most precious asset. But collecting data requires you to use tools and technology solutions that help you with it. And so, many retailers ignore data collection assuming it’s a huge cost.

If you’re a retail brand that ignores data collection from your store credit program, you’re leaving money on the table.

Here’s how you can use data for your store credits program:

• Offer personalized store credit offers by analyzing data
• Create tailored marketing campaigns for better ROI
• Collect data for specific purposes so you can meet different goals
• Collect data on how many customers are using store credits, how many aren’t using them, engagement levels, etc.

How to improve ROI from your Shopify store credits?

When done well, store credits can help you not only boost customer interest and engagement, but also generate more revenue.

But most online retail brands offer store credits. So you have to really pull up your socks and offer an experience that is outstanding and unique. Or else, your points program can get lost in the crowd.

To begin with, you will require robust technology capabilities—an efficient customer account page app that can accommodate your store credits program. You will require a Shopify store credits app that provides comprehensive features, automation, is intuitive, and has the ability to scale as your business scales.

If you’re looking for a points app, explore Flits Store Credits App today!

Install Flits Customer Account Page App and Store Credits add-on feature on your Shopify store.