Boost Sales with Shopify Store Credit

Store credit is a trendy new feature recently released by Shopify in July 2024, designed to enhance customer engagement. This innovative functionality allows customers to hold a balance within their accounts that can be applied to future purchases, rewarding loyal customers, eliminating the need for cash refunds or issuing gift cards on certain occasions. In this blog, we will explore the benefits of store credit, how it works, and how you can implement it effectively in your Shopify store.

What is Store Credit?

Store credit is a monetary value assigned to a customer's account that can only be used within the issuing store. Unlike gift cards or discount codes, store credit is non-transferable and linked directly to the customer, making it a unique tool for fostering loyalty and repeat business. With the introduction of this feature, Shopify merchants can now manually issue store credits directly from their admin panel.

Benefits of Store Credit

Implementing store credit in your Shopify store offers several advantages:

• Enhanced Customer Loyalty:
By providing store credit to the customers’ account instead of gift cards or coupons, which can be give away, businesses encourage customers to return and make new purchases, ultimately boosting retention rates.

• Operational Efficiency:
Store credit streamlines the loyalty rewards process, enabling merchants to manage credits directly from customer profiles without the hassle of issuing gift cards.

• Increased Sales Potential:
Customers using store credit often feel less constrained by their spending, leading them to purchase additional items beyond the value of their credits.

• Improve Customer Experience:
Customers no longer need to memorize complex gift card codes. With store credit, they can effortlessly enjoy the rewards of their loyalty.

• Flexibility in Customer Interactions:
Store credit can be issued for various reasons—whether compensating for an unsatisfactory experience or rewarding loyalty—making it a versatile tool for customer engagement.

Innovative Uses of Store Credit in Shopify

Currently, store credit in Shopify Admin can only be manually edited within the specific customer’s account. However, many merchants have expressed interest in automating the crediting process, particularly for loyalty rewards.

Based on the feedback we’ve gathered, our team has developed an effective solution for automating this process. Here’s how it works:

1. Accrual of Store Credit:
   Customers earn store credit based on their purchases. For example, our model allows customers to accumulate 10% of their order total as store credit. If a customer makes a purchase of $1000, they will earn $100 in store credit. This is all based on the rules written in the code, and the rules can be changed based on the specific business requirement.

2. Using Store Credit at Checkout:
   When customers log into their accounts at checkout, they will see an option to apply any available store credit. If they choose to use their $100 credit on a new purchase, this amount will be deducted from their order total.

3. Tracking and Management:
   Store credits are easily managed through the Shopify admin interface. Merchants can view each customer's balance and transaction history, ensuring transparency and accuracy in managing credits In our custom-developed app interface, merchants can also track the source of the credit—specifying which order contributed to the credit amount—providing valuable insights for monitoring the credit process.

If you’re interested in implementing or customizing this store credit solution for your Shopify store, please reach out to us. We’re here to collaborate and tailor a solution that aligns perfectly with your business needs.

Shopify's new store credit feature is more than just another form of gift card; it’s a strategic tool that enhances customer loyalty and amplifies sales potential. By offering store credit, you can transform sales into opportunities for future sales, providing customers with flexibility and incentives to shop again.