Rewarding customers with store credits is one of the most powerful ways to keep customers engaged and build loyalty. However, without setting proper store credit limits, you run the risk of losing valuable revenue. Customers could end up redeeming their credits to cover entire purchases, which can hurt your margins and reduce the effectiveness of your loyalty program.
This is why we introduced an extra hot feature in Advanced Coupons! In addition to setting a minimum order total allowed for store credits, you can now set percentage limits for store credit redemption! This means you have better control over how much of an order can be paid using store credits. Awesome, right?
Let’s dive more into this!
Why Set Store Credit Limits?
Store credits are a flexible type of virtual currency that your customers can use for future purchases. You can use them to reward customers, resolve returns and refunds, and even run special promotions! Most loyalty programs leverage store credits as incentives to reward customers, including those powered by our WooCommerce Loyalty Program plugin:
While providing your customers with compelling rewards is a crucial aspect of managing an effective loyalty program, it’s just as important to set reasonable limits to keep the system sustainable. Without setting WooCommerce store credit limits, you run the risk of hurting your profits in the long run. Implementing store credit limits ensures that your loyalty or reward system benefits your customers and your business!
Here are the key benefits of doing so:
1. Reduces the risk of abuse
Without proper limits, shoppers can take advantage of your loyalty program. They might end up redeeming huge amounts of store credits and paying entire purchases with points. This is bad news for your profit margins. By setting a maximum percentage limit, you can protect your business from this kind of spending abuse, ensuring shoppers can only redeem a portion of their credit for every purchase.
2. Supports loyalty program longevity
Setting store credit redemption limits is a crucial aspect of keeping your loyalty program effective. If shoppers can redeem lots of points all at once, they might feel like they’ve “exhausted” the value of your rewards system. This defeats the purpose of your loyalty program, which is to keep customers coming back.
Limiting the percentage of an order that can be paid with store credits helps you create a more sustainable rewards system. It helps you spread out your rewards over multiple purchases, providing customers with incentives to return. This brings us to the next benefit…
3. Increases customer retention
Simply put… setting store credit limits encourages repeat purchases, which drives customer retention in the long haul. When shoppers can’t redeem their points all at once, they will be eager to return and make future purchases to maximize their remaining store credits.
This creates a cycle where your customers keep coming back. Each successful order is a chance to strengthen your relationship with your customers–they feel rewarded over time, increasing their chances of sticking around.
How To Set Percentage Limits For Store Credits
Granting store credits is one of the most powerful features of Advanced Coupons. And, with the new feature to set percentage store credit limits, you gain more control and flexibility over your store’s promotions. This allows you to reward your valued customers without hurting your bottom line.
Let’s walk through how you can do this below:
1. Head to the store credits settings page
From your WordPress dashboard, go to Coupons > Settings > Store Credits. This is where you can configure all store credit settings, such as visibility, expiration dates, and limits:
Feel free to explore all the settings available to make sure your store credit system works the way you want it to.
2. Set your store credit limits
To set a maximum percentage limit for store credits, scroll down from your settings page and look for the option “Maximum percentage of store credits redemption allowed per order”:
This feature allows you to set how much of an order can be paid using store credits. By default, it’s set to 100%. If we set the value to 50%, customers can only pay 50% of their total order value using store credits. The remaining balance should then be paid through another payment method of their choice:
Pretty convenient, right?
That’s all you need to do! After tweaking your settings, you’ll automatically be notified that your changes are saved.
Important Note: This new feature requires the premium version of Advanced Coupons.
Let’s take a quick look at how this happens from the customer’s perspective. In the screenshot below, customer Daniel Kim attempted to pay for his $60 order with store credits. With the setting configured to 50%, he was only able to apply 50% of the total order amount in store credits:
Conclusion
Implementing percentage store credit limits is a simple and smart way to ensure your rewards system remains profitable and fair to your customers and your business. By limiting how much of an order can be paid with store credits, you can:
In this complete guide, we introduced you to Advanced Coupons’ hottest new feature: setting a maximum percentage store credit limit! With this new feature, you can take better control of your rewards system and keep customers coming back.
Do you have any questions about this new feature? Let us know in the comments!
It would have been great if we could set this limit for each credit issued instead of for all store credits issued as some store credits are issue for loyalty points and some are issued when the customer needed to change their order and so we issue a store credit and cancel their previous order. For those scenarios, we don’t want to restrict how much of their credit can be used, whereas when we issue a store credit for loyalty points redemption, we only want them to be able to use store credit for a maximum of 50% of their order.