E-commerce has revolutionized the way people do business. It is now accessible and transparent for anybody to make an online purchase. Fortunately, it is easy on the client’s side, but for some business owners, it has not been as easy. There is a significant number of platforms that can solve the problem. Magento is one of those platforms with the intuitive user interface on the business side too.
On this article, we will talk about how to issue store credit in a Magento store. If you are already using Magento as your e-commerce platform, you will find this information of most use. You will discover that there are additional features to your Magento platform you are not yet exploring and exploiting to your benefit. For those business owners who are not yet using Magento, they will discover some of the advantages the platform has to offer.
If you are just a buyer curious about how your favorite online store is working (powered by Magento), then you will get to know some of the advantages for customers too. There are benefits for everyone.
According to BuiltWith, only in the United States, there are almost 125 thousand users of Magento. That is the place where the most users are located. The second place drops to only 16 thousand (10% of the most populated country) for the United Kingdom.
Forbes published at the end of 2015 that Magento had at that time around 240 thousand users globally, selling 50 billion dollars per year. These numbers are of most interest to business owners around the world.
The Role Of Store Credit In The e-Commerce Field
A store credit in the e-commerce field is as important as getting the loyalty of a new customer. People are looking for flexibility on payments, and when stores offer specific credits, there is usually a benefit. The main advantage is that you get an additional credit line, meaning your purchases are not affecting your current loans.
For e-commerce, there is the added benefit of security. You don’t risk your other credits in an online system, getting all e-commerce payments on a separate account.
Store Credit In Magento
When you own a Magento store and want to offer the option of getting a store credit, then all you need to do is to get a store credit extension.
Depending on which extension you chose, there are different options to manage a store credit. The features, installation and configuration may also vary within different solutions, so you have to stick to the particular instructions of the extension you finally installed.
Refund In Store Credit
Returns in store credit are useful for customers who need to change something they bought. This saves time due to delayed transfers or other potential inconveniences. Customers can make use of the store credit immediately after the refund.
The money is virtually held on account of the client. The real money goes to the store, and never leaves the bank again. As a store owner, you can keep your cash flow under control with a refund in store credit. Even when your customers don’t spend it immediately, you get to keep it to continue operations.
As a user, you can access your account through a portal to consult balance, refunds, and more.
Buy A Store Credit Product
A store credit product works just like a certificate for your store. You buy a store credit item, the sum of the purchase transfers directly to your account. Now your balance is topped up with virtual currency equal to the amount of the purchase, like a “virtual certificate”. Store credits can be further spent on your business. You can also add a reward points program to incentivize buyers to purchase credit products. Having virtual money accumulated on the account, customers are more likely to make additional purchases at your online store.
A credit line from the store can be an attractive hook to get more clients to your front door. Imagine that a onetime customer that knocks your door once gets the credit product. Most likely he will be a repeated customer in no time. With his subscription, he will have more possibilities to purchase at your store, plus he will remember your business. Having an exclusive credit line for your e-commerce is the new way of doing online business.
Having installed a store credit extension, you may wish to get customized reports. They will give you valuable information on your company to improve the performance of your campaigns. The stats you get can be useful to identify hot products, recurrent clients, the average amount per purchase, the number of the returned products, which are the favorite facilities with store credit, and more.
The stats provide a great input to set and check on your strategy. You can make decisions on the next offer or featured product just by analyzing the stats.
Store credit is an essential part of any loyalty program in the e-commerce field. It is another method to motivate existing customers to make even more purchases. Refund in store credit or let customers purchase store credit products and increase brand loyalty and sales volume.