Magento 2 Store Credit: It has been forecasted that by 2021 the global number of digital buyers is going to cross 2.14 billion. The number is a significant jump from 1.66 billion in 2016. With online purchasing becoming common practice for many worldwide, certain factors lead to the increase in this form of shopping. While the online purchase is often associated with convenience, some prefer it for the competitive price that the eCommerce offers while others like something that’s called store credit. Magento 2 Store Credit is now becoming an essential part of eCommerce websites.
As mentioned earlier, several factors exist, including the existence of a fair and comprehensive return policy offered by eCommerce sites that dictate customers choosing the service. As per Statista, on average, there has been a 75.2 percent increase in return in the last four years combined compared to 2020 alone. In that year, the eCommerce industry in America spent $550 billion in returns.
But if store credit is used properly, then it will boost customer retention while increasing brand loyalty.
So, what is store credit?
The process in which you allow a customer to refund the product for a reason but instead of giving the money back for the purchase, you allow them to purchase some other goods of the same or more value from your store. While satisfying your customer, the process also doesn’t threaten your sale because the customer is not taking the money but staying with your service.
Typically store credits can be categorized into the following:
- Returns and exchanges
- Gift Cards
- Loyalty Rewards
- Store Credit cards, layaway, and financing
When store credit is used innovatively, it will reduce customer churn and help the owner reap amazing benefits. So, if you are interested in knowing how you can avail the benefits of store credit for your eCommerce site, it’s time you add the store credit Magento 2 Extension into your system.
Magento is considered a leading eCommerce platform. It is being used by Top 1000 internet retailers across the world. Furthermore, with over 300,000 Magento developers and 1,150 plus solution and technology partners, you are able to get their help in setting up your Magento 2 Store Credit Module. The feature will empower your business immensely. Here are some of the pointers on why you need Magento 2 Store Credit for your eCommerce business, whether it’s B2B or B2C.
With the Magento 2 Store creditextension, you can customize the return policy duration beyond the typical 30 days. This will allow your customers more flexibility while you can add the refund to the store credit for your client, thus encouraging the shoppers to visit your store more often.
The module is designed to allow you to automatically calculate a full or partial refund for the store credit for the customer. In addition, the extension is programmed to prefill on the memo page the store credit as per your convenience.
The Magento 2 Store Credit Extension offers both the customer and owner an easy store credit management system. The eCommerce site owner can view, update balance, send a notification, and even manage the customer’s store credit from the extension, along with finding relevant information and credit history of the customer to serve better. On the other hand, a customer can check their credit and balance history and redeem the store credit while checking out. The process can be done manually or automatically by the merchant, where the store credit can be used at the backend when creating the new order for the customer.
With Store Credit Magento 2 extension, you can have merchandise credit, promotional credit, and store credit voucher options for your customers. In the first variety, the customer’s store account is credited with returning the item. Furthermore, the promotional credit system enables customers to get credits when they apply for some promotional offers automatically. Last but not least, the store credit voucher allows the customer to redeem the store credit balance after the purchase. All these provisions enable the merchant to optimize the marketing campaigns that can also increase their sales because, in most cases, the sum spent on purchased items is more than the credit balance offered.
You can improve customer retention and better the return policy options with the store credit extension of Magento 2, which can be easily integrated with Plumrocket Returns and Exchange (RMA) and other third-party Magento 2 themes plugins and solutions. This will allow you to offer better customer service and a hassle-free management experience.
With Magento 2 extensions like store credit as a merchant, you can offer a better customer experience. It will ensure more convenience for your customer when they shop at your eStore and not be concerned about the refund when they want to return an item. The process ensures your customer will always get their money’s worth of service or product while you guarantee reducing customer churn by keeping them satisfied.
Magento Store Credit is becoming immensely vital to be integrated into the eCommerce platform that uses Magento, the reasons being:
The store credit process integrated into the eCommerce management system warrants additional incentive to customers to come back to the shop instead of looking somewhere else. This warrants repeated business for you.
You might think that using store credit to lure customers in is counterintuitive, but in reality, it’s the opposite. A study conducted by GE Capital revealed there are 29% more visits of customers who were offered retail-branded credit cards. Also, customers use more than the store credit when purchasing items because they feel comfortable shopping at your place.
As mentioned earlier, a significant amount of money is lost by American businesses in return and exchange policies. However, you won’t lose any revenue when you offer a flexible store credit on returned items. Instead, a well-deployed store credit policy will help you increase your revenue as it is customer-friendly.
The entire process of offering store credit helps you to build your business image as it projects trust and loyalty. Making attempts to enhance images helps you beat the competition.
Over 82% of small businesses fail due to erratic or stop of cash flow into the business. With an integrated store credit system with Magento 2 for your eCommerce site, you can warrant a steady cash flow. Additional cash flow and securing credit before spending it will give you the opportunity to keep your business afloat with loyal customers.
If you are still thinking about whether you should integrate the store credit extension offered by Magento 2 for your eCommerce site, the next section can help you decide. The extension comes with quite a few features that are beneficial for the owner and the customer.
Magento 2 store credit extension is one of the most effective features that can be used for your site to build the credit system for your business. There are several amazing features that the extension offers for both the customer and the admin of the store. Some of the key features are:
1. Refund by Store Credit
2. Purchasing Store Credit
3. Spend the store credit
4. Share it with friends
5. Add or subtract the credit value (admin)
6. Manage store credit reports
7. Get data and analytics on customer spending
The overall convenience that the module offers with the key features like managing the credit system without any special skills once the extension is integrated is immensely helpful for the admin. Also, as a store owner, you can set a maximum and minimum cap for using store credit by your customers. Furthermore, you can also give the customer the option of how they intend to use their store credit.
With these key features, you can reduce the number of dissatisfied customers, thus benefiting your business in the long run.
The Magento 2 Store Credit extension is a very powerful and smart plugin that benefits both the admin and the customer. The process will allow you to offer your customers exchanges instead of taking the business to your rival store. The in-depth analytics in the extension also allows you to understand the customer’s preferences, via which you can offer a better and customized service to them. As a customer, one can also look into the credit performance to understand how effective the store credit program is, so they can continue with you. If you want to enjoy the benefits of Magento 2 and its extension it’s time you upgrade your eCommerce platform.