How to Add Store Credits and Loyalty Programs to Your WooCommerce Store

Want more repeat customers? You need a store credit and loyalty program. That’s because returning customers spend 67% more than new ones, and you don’t have to spend money acquiring them. It’s a win-win, especially if you have a WooCommerce store.

With WooCommerce store credit and loyalty programs, you can turn one-time shoppers into lifelong customers. Instead of discounts that eat into your profits, store credit encourages your customers to return, increasing average order value and reducing your refunds.

Likewise, loyalty programs reward customers for purchases, referrals, and engagement and encourage them to shop more. That’s why, at CoSpark, we recommend adding loyalty programs and store Credit to your WooCommerce site.

How? Let’s find out.

How Does WooCommerce Store Credit Work

With WooCommerce store credit, customers receive credit instead of refunds or as a reward. For instance, your customers can earn $10 store credit for every $100 spent. They can use it for future purchases, which naturally encourages more spending.

Set Up Your WooCommerce Store Credit

Store credits area perfect way to incentivize your customers. You can use them as a form of refund, reward, or promotional tool. Here’s how you can add store credit to WooCommerce.

Step 1: Choose a WooCommerce Store Credit Plugin

The first step is to install a WooCommerce store credit plugin. Some popular options include:

• Store Credit for WooCommerce: This plugin allows you to issue store credits directly from your WooCommerce dashboard. You can set expiry dates, assign credits to specific customers, and even offer partial credits for returns.
• WooCommerce Points and Rewards: This extension lets you reward customers with points for purchases and actions, redeemable for discounts. You can set earning rates per dollar spent and control redemption values. Plus, you can award points by product, category, or globally, with options to cap maximum discounts.
• YITH WooCommerce Account Funds: This plugin lets customers add funds to their accounts, which they can use for future purchases. It boosts repeat sales by keeping money within your store while offering exclusive discounts for users who pay with their account balance.
• YITH WooCommerce Points and Rewards: With this plugin, you can reward customer loyalty using an effective points program and offer targeted discounts once your customers achieve the store goals.

After installing the plugin, go to its settings to configure how you want to issue and manage store credits on your WooCommerce site.

Step 2: Configure Store Credit Settings

Once the plugin gets installed, configure your WooCommerce store credit settings. This means deciding how customers can earn and redeem their credits.

One option is to offer refunds as store credits instead of cash, which keeps the money in your store and encourages future purchases. Another option is to set up a system where customers earn store credits for every purchase, like $5 in-store credit for every $50 spent.

Additionally, you could reward loyal customers with WooCommerce store credits on their birthdays or membership anniversaries. Whichever method you use, tell your customers how they can redeem their credits. Keep the guidelines and rules simple, transparent, and effective. The more transparent you are, the more likely your repeat sales are to increase.

Step 3: Issue Store Credit to Customers

Once your WooCommerce store credit settings are configured, issue them to customers. You can offer them as a refund, a reward for loyal shoppers, or part of a special promotion. Instead of losing revenue to refunds, this keeps money in your wallet while giving customers a reason to return.

You can set up automated store credit rewards for frequent buyers to encourage repeat purchases. Something like “Spend $200, get $20 store credits.” might just be the nudge your customers need to make their next purchase.

Just be sure to:

• Set expiration dates to drive faster use.
• Use personalized credits to woo loyal customers.
• Optimize your checkout to let customers use partial credits.
• Define minimum and maximum credit limits to keep your program viable.

Step 4: Test the Checkout Process

Before going live, test how WooCommerce store credit works during checkout. The credit should be deducted from the order total and work with the payment gateway your customers want. Run test transactions to confirm that everything works as intended, no matter how your customers pay for their purchases.

Here’s a quick checklist for you:

• Be sure customers can apply credits easily at checkout.
• Verify that credits get deducted correctly from the order total.
• Check if expiration dates and usage limits apply properly.
• Look for conflicts with payment gateways or discount coupons.
• Test mobile and desktop checkout experiences.

How WooCommerce Loyalty Program Works

A WooCommerce loyalty program rewards customers with points for every purchase, keeping them engaged and encouraging repeat business. These points can be redeemed for store credit, discounts, or even free products.

If you’re migrating your store to WooCommerce, you don’t have to lose your loyal customers. You can carry over your past loyalty programs and rewards so your customers don’t lose their hard-earned points. This increases customer retention and boosts spending, making it a must-have for any growing store.

Set Up Your WooCommerce Loyalty Program

Loyalty programs go hand-in-hand with store credits, and setting up your WooCommerce loyalty program involves choosing the right plugin.

Step 1: Install the Right WooCommerce Loyalty Plugin

You can use store credit plugins, like WooCommerce Points and Rewards and YITH WooCommerce Points and Rewards, to set up a loyalty program for your website. However, you can also try other options such as:

• Smart Coupons for WooCommerce: This plugin helps boost sales and customer loyalty. It allows you to create advanced discounts, sell gift cards, set up BOGO deals, provide store credits, and implement all types of rule-based dynamic discounts in WooCommerce.
• SUMO Rewards: This more feature-rich option offers advanced features like tiered rewards, referral rewards, and more.
• Smile.io for WooCommerce: It’s a powerful solution that gamifies your WooCommerce loyalty program with referral rewards, VIP tiers, and exclusive perks. It helps increase customer retention by making loyalty programs more interactive and engaging, keeping shoppers invested in your brand.

Step 2: Set Up WooCommerce Reward Tiers

One effective strategy for WooCommerce loyalty programs is to create reward tiers. This encourages customers to spend more to reach higher reward levels.

For example:

• Bronze Tier: Earn 1 point for every $1 spent.
• Silver Tier: Earn 1.5 points for every $1 spent after spending $500.
• Gold Tier: Earn 2 points for every $1 spent after spending $1,000.

Tiers not only incentivize higher spending but also create a sense of exclusivity, making customers feel special as they climb the ranks.

Step 3: Reward Non-Purchase Actions

A robust WooCommerce loyalty program reward smore than just purchases. Consider offering points for actions like writing reviews. This will encourage customers to leave product reviews and boost your store’s credibility while increasing customer engagement.

Another effective strategy is to reward customers for referring friends to your store, which is a great way to grow your customer base organically. Additionally, offering points for social media engagement, such as sharing your products on social media, can increase your brand’s visibility and encourage user-generated content.

These actions not only incentivize customers to interact more with your store but also help build a stronger community around your brand.

Step 4: Promote Your WooCommerce Loyalty Program

Even the best loyalty program won’t be effective if your customers aren’t aware of it. Promote your loyalty program through multiple channels to ensure maximum visibility.

• Email marketing, which offers a whopping ROI of $36 for every $1 spent, is a great way to inform customers about your loyalty program and its benefits.
• Website pop-up scan be used to promote your loyalty program to new visitors, capturing their attention immediately.
• Additionally, sharing posts about your loyalty program on social media platforms and highlighting the rewards customers can earn can significantly increase awareness.
• Regularly remind your customers of the benefits of your loyalty program, especially those who haven’t joined yet, to keep the program at the forefront of their minds.

Boost Retention with WooCommerce Store Credit & Loyalty Programs

A WooCommerce store credit and loyalty program gives customers more reasons to return, spend more, and stay engaged with your brand. Store credit keeps revenue in your business while reducing refunds, and loyalty programs reward shoppers for every purchase. When combined, they create a powerful system that builds trust and long-term relationships.

Whether you’re launching a new store or handling a WooCommerce migration, setting up these features is easy with the right plugins. But if you want a truly customized shopping experience for your customers, our seasoned developers can help.

CoSpark specializes in WooCommerce development, migration, and maintenance. Contact us to learn how we can help your store thrive.