There's more to transactional emails than you think. Here's how to strike gold with them. Read More >
Credits are a common occurrence while shopping, whether it is store credit for exchanging something with a lesser price or when you have less cash on you in a known store. Or it’s just a day of an offer where the store is offering you credit. Online businesses are no different.
Credits are used for a lot of different purposes. Businesses often resort to providing customers with credits for three apparent reasons:
- Attract customers
- Avoid Refunds
- Retain customers
One of the ways in which credits can be used to attract customers are, the referral program:
Example: Let us assume, a credit of $100 is given to both the referrer as well as the referee when a customer refers a person and they sign up.
This one pretty straight forward, when a customer changes plans or when they exchange a product for another product with lesser price. then credits are sometimes used.
Whether it is an error in transaction or a major downtime to make up for, an earnest mail explaining the situation and providing some credits to make up for the value lost could be a way to go.
In ChargeBee there are two types of credits,
One is the automated credit that happens upon proration (when the option is selected).
Another is the manually added credits
Whether it is to attract the customers or retain them from the POS stores to the online businesses, credits have definitely evolved to benefit the customers as well the businesses running them.
Credit adjustments, how are you making use of them? Don’t forget to leave a comment.
Subscription Billing Made EasyTry for free
Recent Blog Posts
Implement these tactics at every stage of the payment failure life cycle to optimize your revenue recovery, recover as many failed payments as possible, and fight involuntary churn. Read More >
From Unit Economics to expansion MRR to negative churn, meet the SaaS characters and metrics that make, break and change the course of your SaaS growth journey. Read More >