- [00:00] - Sponsor: Rewind
- [00:40] - Intro
- [01:05] - About Rise.ai
- [02:05] - How to utilize store credit
- [02:50] - Why sell gift cards
- [03:50] - Benefits of sending gift cards
- [04:42] - Work with loyal customers
- [05:30] - Recap
- [08:16] - Where to learn more about store credit
- Rise.ai develops the most forward-thinking gift card industry. They make it accessible for thousands of brands and small businesses that use Shopify.
- There are 3 main ways to use store credit and gift cards: 1) Selling gift cards, 2) Using store credit to engage with customers, and 3) Working with your loyal customers.
- Selling gift cards is the simplest and it has become stronger since 2020.
- Digital purchasing has become mainstream, making gift cards the fastest adopted gifting product in the world. However, not a lot of brands are using it yet or let it work better for them.
- Store credit is equivalent to money. It’s the most straightforward way to engage and help your customers understand the value that they are getting back through loyal action, referral, and more.
- Over 20% of gift cards that are sent as promotions are redeemed in opposed to points, which is somewhere between 11-12%
- Credit can be accumulated because it's attached to someone's account like a digital credit card. That’s what makes redemptions much higher.
- Work with loyal customers not only on the promotional but also on the operations with advanced loads for refunds and returns.
- You can utilize credit with customers to lower operations costs and increase those customer’s lifetime value by keeping them in the loop. Make things accessible through return portals, regular refunds, etc.
- Another great option is to combine store credit with good customer experience. This just adds to the probability that someone would use it.
- Loyalty and operations aren’t something people always think about until they see the returns. If you can keep that money in your bank account as opposed to sending it to the bank, that kind of makes its cash flow positive
- You're giving the customer an option through store credits or gift cards and that has a potential value for brands.
- Visit the Shopify blog or Rise.ai blog for more information and resources about store credit, understanding how to communicate, best practices to refund store credits, and more.
Unprepared isn't scripted or edited. There are no redos, and when we screw up, it's going live. This works for our show, but it is no way to run your Ecommerce business.
Our partner Rewind is here to help. They will help you backup your Shopify store with automated backups of your most important data.
Rewind should be the first app you install on your store to protect it from human error, misbehaving apps, or collaborators gone bad. It's like having your very own magic undo button.
It's trusted by over 70,000 retailers from side hustles to the biggest online stores like Gymshark, Gatorade, and Movement Watches. Best of all, if you reply to any of their welcome series and mentioned Unprepared, you can get your first month free.
Hey, everybody, welcome back to another episode of Unprepared. Joining me from halfway across the world, our favorite man to talk to about gift cards and loyalty and store credit. Nadav, welcome to the show. How are you doing?
I'm good, Chase. Good, man. Thanks. Thanks for having me.
So for the people that are unaware, do you want to give a quick background on who you are and the app that you work with?
For sure. Yeah, so real quick about myself. I'm from Tel Aviv in Israel. I'm working in the Ecom industry for the past four or five years.
Now I'm over two years here at Rise.ai, where we develop the most forward-thinking loyalty and gift card product in the industry where we make it accessible for thousands of brands to launch the most advanced experiences that we know from Starbucks, Amazon, and those kinds of companies and make it accessible for every small business that use Shopify.
Yeah, and you know, this isn't an ad or anything like that. But the product is amazing, we use it on a lot of our builds at the agency. So it's got my stamp of approval.
If you're looking for a little bit more functionality beyond what comes out of the box with Shopify, I highly recommend checking it out.
So without this being a paid ad for it, let's talk though, about how to utilize store credit appropriately, and how to make your customer experience better. And you know, I'll just kind of pass the floor to you. You're the expert here. I mean, I'm here to learn
For sure. So, as we view it, there are three main sequences in which store credit or the term that we prefer to use when we look about this whole thing as a whole is brand currency.
So because it's like a currency that's only applicable for your brands and sort of closed-loop gift card. And the three main use cases that we see that are most adaptable and most beneficial for merchants are three.
So the first one is the simplest one and the one that everyone knows great is the option to practically sell gift cards. Selling gift cards at this time has become, in 2020, where digital gifting has been more, I guess, stronger than ever. We have really...
Yeah, that's how you can get practically, not a lot of sideways to it. This is something that is the most of the fastest adopted gifting products in the world.
While a lot of brands are not utilizing it well enough, not creating personalized experiments, not promoting it, not creating promotions, or workflows to make this product work better for them.
One of our main or one of the main things that the main use cases that you should use just practically sell it. And this is like, sell your store credit, sell gift cards.
So this is one. The second one is an option to promote your brand in various ways. So one of the most...coolest things about store credit is the fact that it's equivalent to money.
And when you're using it to engage with customers, this is the most straightforward and understandable way that can help them understand the value that they get back from each action--whether it's a marketing action, whether it's a loyalty action that is based on certain actions, or whether it's like refer a friend or practically any promo that you can do. It can even be fulfilling like inserting gift card codes on physical products that you send out.
You practically give them code that are equivalent to money and that they can use the most straightforward way to create engagement with customers.
And the third one, which is for us, has been I think the fastest growing this year is the option to work with loyal customers, not only on the promotional side of thing and marketing side of thing but also on the operations with advanced loads for refunds and returns, where you can really utilize credit with those customers to really lower operations costs but more than that, increase those customers lifetime value by keeping them in the loop.
Because a lot of customers love your brand and just want to shop again. So making it accessible through returns portals, or through just regular refunds that you're issuing.
Another great option to use, do you store credit. If you have a good customer experience in it, and it's accumulated or earned into some sort of store account or a digital wallet, it just adds to the probability that someone would actually use it in the end.
Yeah, yeah. So let me quickly recap what you just said there. So first there are three main ways to utilize store credit or as you'd like to refer to as brand currency.
The first way being just to sell the dang things--sell gift cards, if you're not doing it, start doing it. It's straightforward. It's free money, it helps you...it's not free money, but it helps you have some money in the bank to do other things to do that.
The second way to do it is to engage customers through just sending them actual gift card codes. I know previously when we talked that there was almost a lift when doing that, sending someone a $10 gift card versus a $10 coupon. It had a higher conversion rate. Do you have...do you know how that worked out?
Yeah, for sure. So stats today show that over 20% of gift cards that are being sent as promotions are being redeemed as opposed to points, which is somewhere between 11-12%.
I'm not even speaking about discount coupons, where we're talking about 3-4%. And that's really dependent on a lot of different stuff.
And I think the main benefit to it is the accumulation part. Because when you're issuing discounts, or it's something that you know that you get it and it's a code and it sits out there, and you don't probably don't even know how to use it, or when to use it. It might not be relevant.
But credit can be accumulated because it's attached to someone's account some sort of like a digital credit card that's only associated with the brand. And that is what makes redemptions much, much higher.
Absolutely, yeah, it's definitely a cool thing to keep in mind. People straight up, just think about it as your brand is giving them cash is how they perceive it, which is amazing.
And then the final one with loyalty and with operations. This is definitely something that I don't think many people think about until they hit a certain scale is with returns if you can keep that money in your bank account when you get a return as opposed to sending it back. That just keeps you cashflow positive, per se. You know, it's definitely a better way to look at it.
Yeah, and this has been done when we're talking returns for a certain size of brand. This is like complete self-serve activity. So you’re practically giving the customer the option, but just giving them an option has a substantial value because many of you based on our stats above 20% choose it.
Absolutely. Now if I'm listening to this show, and I've realized that, you know, my gifting my store credit functionality is subpar. And I'm curious to learn more, well, what should I do? Where do I go?
So in order to...so I think they're like, there are not tons of content about it. Because you just really said, those things are stuff that huge brands, all those loyalty programs, and all the refunds operation and the gift card sales are something that Amazon and all the largest brands in the world are already doing. But making it accessible for small businesses, it's not easy.
I can't really do it. It's so much above my capabilities. So just to start, I would read. There's a lot of content out there. I think also through Shopify Plus has great blogs that are discussing customer loyalty.
Obviously, our site has just because we are really diving into those particular issues like understanding how to properly communicate rewards that are based on credit or how it is, what are the best practices and adopting reference for store credit, because it's definitely not one fits all. Those strategies are complex, they need to be well incorporated.
So I would start with just these two articles that are featured in our blog. And actually, something just in a bit more general that we did recently.
At the end of the holiday season, we broke down with 38 of our partners a large list of tips around customer engagement and those areas in particular and how to utilize those kinds of products better so I would recommend everyone that's interested to start from this discount.
That's amazing. I'll make sure to link to all that stuff in the show notes. Thank you so much for coming on today.
Thank you, Chase. Bye.