A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Store Credit refers to offering your customers a value for being a buyer at your store. Store credit is one of the best tools to boost customer retention and revenue. Many successful eCommerce businesses like Amazon and Walmart have made use of this strategy in their stores.
However, Store Credit can be offered only on one particular store which means that it can’t be used to make a purchase on different brands.
Why are Store Credits important for your eCommerce Website?
1. Store credits are the best way to show gratitude to your customers for buying your product & making them feel welcome to visit your store again.
2. Store Credits increase your average order value by encouraging your customers to purchase more and spend again on your brand.
3. Offering store credits hikes the number of visitors to your store
4.Store credits are kind of an online payment option and henceforth, provide your customers with the flexibility to pay using the e-Wallet.
One should always offer Store Credits smartly, otherwise, while willing to provide your customers with the most satisfying experience, one might face loss in your revenue.
How to use Store Credits as an efficient marketing strategy?
Store credits can be given on the following occasions :
1. For word-of-mouth marketing or for referring to your brand.
2.To compensate for any poor service offered to your customer.
3. During off-season to encourage your customers to purchase.
4. To reduce the abandoned cart rate.
5. To refund for returns or exchange on your store
Store credit enables you to expand the return policy to a longer time frame and thus makes it more customer-friendly. This also helps you keep money within your business and eases the burden of returns on your bottom line. An example of the promotional store credit is represented on the Target website. The company runs promotions on particular products by offering gift cards. For instance: “Get a $5 gift card when you spend $15 on selected sun care items by Monday .” As a result, your clients purchase more items and earn credit, and money also stays within the company.