Customer loyalty is the centerpiece of any online retail business. Store credits are a credible mechanism with which you can improve customer loyalty.
Store credits make your store more customer friendly. Offering store credits instead of refunds even help to convert customers who are unlikely to purchase from you in the fear of losing money. From the store owner’s perspective, it stabilizes revenue.
Having the ability to offer store credits is therefore vital in maintaining your WooCommerce store. Keep on reading this article to learn how you can set up a store credits system in your WooCommerce store.
What are WooCommerce store credits?
WooCommerce store credits are simply a type of coupon that can be redeemed through single or multiple purchases.
Such coupons are usually used in the following scenarios.
- Store credits as a substitute for returns or refunds. It helps to ensure customer retention.
- As WooCommerce gift cards that can be gifted to friends and family
- Award store credits as loyalty rewards for continued association with the store
The difference between a normal coupon and a store credit voucher is that store credits are usually user-specific.
Gift cards are a popular example of store credit. These are the credits that the customer provides to their loved ones instead of using them themselves.
Benefits of store credits
There are several benefits of employing store credits in your WooCommerce store. Some of the major ones are listed below.
- Improve customer loyalty and retention
- Drive up store traffic with vouchers such as gift cards
- Improves the average sales volume
- Soften the impact of returns and refunds
How to set up WooCommerce store credits?
Store credits are not a default WooCommerce feature. This means you will need third-party tools or plugins to add the store credits feature to your WooCommerce online outlet.
The Smart Coupons for WooCommerce is one such plugin from WebToffee that adds store credit functionalities to your store. The plugin facilitates other coupon features such as cart abandonment coupons, sign-up coupons, volume discount coupons, coupon bulk generation, and more.
With this store credit coupon plugin, you can configure WooCommerce store credits in two different ways. One is to create store credits that your users can purchase as a product. The other is to manually email the store credits to the required users. You can use this method as an alternative to refunds.
Let’s look in detail at how you can create store credits using the Smart Coupons for WooCommerce plugin.
Create purchasable store credits
To enable your users to purchase credits, you should offer them as products that can be procured from the store catalog.
To create purchasable store credits,
- Go to Products > Add New from your WordPress dashboard.
- Give a product name. Mind that the customers will have to identify that the product is store credit meant to be a store credit while purchasing it. So, provide a suitable name for the product.
- Now scroll down to the Product data widget and choose the product type as Simple product.
- From the General tab set the Regular price as 0.
- Now you can choose the rest of the product required configuration as you please.
- Once done, publish the product.
- Now go to Smart Coupons > Store credit > General Settings.
- Choose the product that you have previously created under Associate a product.
- Choose the Credit purchase options and configure the corresponding settings.
- Save the configured settings.
The below image shows how a customer will see a store credit in your store. They can purchase the store credit in the same way they purchase any other products from the store.
Offer store credits instead of refunds
Product returns and refund requests can dig a hole in profit margin. The only way by which you can prevent this is by offering your customers credits instead of refunds.
The store credits received this way can be redeemed during the next purchase.
To offer store credit coupons when a customer requests refunds,
- Go to Smart Coupons > Store credits > Email store credit from your WordPress dashboard.
- Provide the email address of the customer to whom you want to offer the store credit.
- Fill in the store credit amount, and provide a caption and a description.
- Choose whether you want the store credit voucher to be used along with other coupons or not.
- Once selected, click on Sent email.
This will create a store credit voucher in your store and will email to the specified customer.
Customers can use the voucher to purchase products from your store.
How to redeem WooCommerce store credits
Your customers can redeem these store credit vouchers in the same way they use a normal discount coupon.
Customers can use the code in the voucher to apply the store credits to their purchases. They will only have to insert this code in the area for the coupon code on the cart page.
The recipients of the store credits vouchers can either avail of their coupons from the email or can view them from My Account > My Store Credits.
When they are purchasing a product they can provide the coupon code in the voucher to avail of the store credit.
Note that the customers can claim the full voucher amount in a single purchase or during multiple purchases. That is, if you have a store credit of $100 and you purchased for $55 using the credit voucher, you will have $45 remaining in the store credit voucher. It can be used for later purchases.
The Smart Coupons for WooCommerce plugin makes offering store credits as seamless as possible. With the plugin, you can offer store credits instead of returns or refunds, facilitates gift cards, and directly send store credit voucher emails to customers.
Read this article on creating store credits instead of refunds to know more about setting up store credits using Smart Coupons for the WooCommerce plugin.
Hope this article was of interest to you. Feel free to drop your thoughts and remarks in the comments below.