Home

Launching your Store Credit Program

The launch of your store credit program is a crucial step in implementing this customer retention strategy. A well-planned launch can significantly impact the program's success and adoption rate. Let's focus on two key aspects: determining the initial store credit balance and effectively communicating the program to your customers.

Determining the Initial Store Credit Balance

When launching your program, it's important to start with an appropriate amount of store credit for your customers. Consider the following:

  1. Start Low: Begin with a conservative amount of store credit. This allows you to test the program and assess its impact without significant financial risk.
  2. Consider Your Average Order Value (AOV): Your initial credit amount should be enough to incentivize a purchase but not exceed your AOV. A good rule of thumb is to offer 10-20% of your AOV as initial credit.
  3. Segment Your Customers: You may want to offer different amounts to different customer segments based on their purchase history or loyalty status.
  4. Make It Memorable: Choose a round number that's easy to remember and communicate, such as $5, $10, or $20.

Communicating the Program to Your Customers

Effective communication is key to ensuring your customers understand and engage with the new store credit program. Here's how to approach it:

  1. Multi-Channel Announcement: Use email, social media, your website, and in-store signage (if applicable) to announce the program.
  2. Clear and Concise Messaging: Explain the program simply, highlighting its benefits and how customers can use their credit.
  3. Personalized Communication: If possible, personalize the announcement with each customer's initial credit balance.
  4. Create a FAQ: Anticipate questions and create a comprehensive FAQ section on your website.
  5. Highlight in the Checkout Process: Make sure the available credit is clearly visible during the checkout process to encourage its use.

Educating Your Customers

Education is crucial for the program's success. Consider these strategies:

  1. How-To Guide: Create a simple guide explaining how to check and use store credit.
  2. Video Tutorial: A short video can effectively demonstrate how to use store credit in your shop.
  3. Regular Reminders: Send periodic reminders about available credit to encourage its use.

Monitoring and Adjusting

After launch, closely monitor the program's performance:

  • Track Usage: Monitor how quickly and frequently customers are using their credit.
  • Gather Feedback: Encourage customer feedback to identify any confusion or issues.
  • Be Prepared to Adjust: Based on the data and feedback, be ready to adjust the initial credit amount or program terms if necessary.

How much Store Credit should your customers start with?

When launching your program, you should start with a low amount of Store Credit. This will allow you to test the program and make sure it's working as expected. At the same time the amount of credit should be enough so that customers feel valued and that it incentivizes a new purchase.