Configuring bonus store credit incentives in ReturnZap

Offering store credit is a great way to reduce refunds and encourage your customers to continue shopping on your store.

When you configure your returns policies in ReturnZap, you have the option of enabling multiple resolution methods:

Refund
Exchange
Store Credit

These resolution methods can be further customized through advanced rules.

Incentivizing Store Credit with Bonus Credit

To further incentivize customers to select store credit instead of a refund, ReturnZap gives you the option to offer bonus credit.

Your customers will see this credit as an option within the returns portal. If selected, this amount will be added to the credit issued to the customer when you process the return through the ReturnZap admin.

This feature is available on the ReturnZap Pro plan and above.

Requirements to Offer Bonus Store Credit

You must meet the following conditions before bonus store credit can be enabled:

You are on the ReturnZap Pro level plan or above
You have store credit enabled as an option on your store
You have the returns integration with Shopify turned on in ReturnZap settings
You have the store credit integration into Shopify turned on, with either discount code or gift card store credit selected
You are using v2 or later of the ReturnZap returns portal

Not sure if you meet these conditions? Reach out to ReturnZap support.

Note: because it is intended to incentivize users to choose store credit over refunds, the store credit bonus will only display to customers if more than one return resolution method is available to them. If store credit is the only option available, then no bonus will display.

How to Enable Bonus Store Credit

Configuring store credit bonus can be done in Settings > Policies > Store Credit from within the ReturnZap application

Configuring Bonus Store Credit

There are several options to configure bonus store credit within the settings page. These allow you to set parameters for how bonus credit is calculated, and to define maximum and minimum amounts of store credit to offer to your customers.

Percentage

The percentage value used to calculate the store credit bonus. This percentage is based on the discounted sell price of the items in the return.

Minimum

The minimum credit amount that will be offered to customers. Leave blank if you do not wish to define a minimum amount. See below for more detail on how this minimum is applied.

Maximum

The maximum credit amount that will be offered to customers. Leave blank if you do not wish to define a maximum amount. See below for more detail on how this maximum is applied.

Round to nearest whole unit

If checked, ReturnZap will round the bonus credit amount to the nearest whole currency unit. For example, $3.25 will round to $3 and $3.99 will round to $4.

Type of incentive

There are 3 ways ReturnZap can calculate and apply bonus store credit:

Once per item
Once per line item
Once per return

The amount of store credit offered to customers will depend on the method used to calculate, so it is important to determine your preference and setting this field accordingly.

Once per item

When once per item is selected, ReturnZap will calculate store credit for each unit within a return. The minimum and maximum credit amount values and rounding settings will apply to each unit.

For example, consider a situation where a customer is returning 3 units of a $50 item. There is a 10% bonus incentive configured, with a maximum bonus amount of $4.

With once per item selected as the bonus calculation method, the customer will see a total bonus amount of $12:

3 units x $4 bonus per item. (10% of $50 is $5, but the max bonus amount is limiting us to $4 per item in this case).

This calculation can happen multiple times per line item, and multiple times per return.

Once per line item

By selecting once per line item, ReturnZap will look at each line item within the return and calculate the total incentive amount. A line item is defined as a unique product within the return. Note that a single line item can have multiple units, for example if a customer is returning 3 of the same red T shirt.

Using the same example as above, with a return of 3 units of a $50 item and a 10% incentive with a max of $4, the calculation will be as follows:

3 x $50 = $120 total line item value x 10% incentive = $12. However, recall that there is a max incentive defined of $4, so the bonus credit offered will be $4.

Once per return

By "selecting once per return", ReturnZap will calculate the incentive and only apply it one time per return, regardless of the number of units or line items contained in the return.

Let's take the same examples as above but add in another product so the order looks like this:

3 units at $50 per item of Product A

2 units at $100 per item of Product B

The calculation of the bonus credit will be as follows:

$150 in return value from Product A plus $200 in return value from Product B = $350 total return value x 10% incentive = $35 bonus credit. However, the max credit setting will limit the amount of credit offered on the return to $4.

How to issue store credit with the bonus amount applied

Bonus credit will be visible to store admins when processing the store credit from the return detail page. A new field for "Bonus Credit" will appear, which will be pre-populated with the calculated bonus credit for the return.

This field can be reviewed and changed, if necessary, before issuing the store credit.