What are credit adjustments and how can you be using them?

By
| Last Updated: December 30, 2016 |

Reading time: 1 minute

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

Attract 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.

Avoid Refunds:
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.

Retaining Customers:
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.

With ChargeBee:
In ChargeBee there are two types of credits,
One is the automated credit that happens upon proration (when the option is selected).

Upgrade

Another is the manually added credits

Add 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.

Author of the post

Bhargavi P

Product Marketer at Chargebee. Coffee Addict, Music Explorer, Avid Reader, Poet.

Hear from a team of curious beings
A team that’s bent on delivering the best stories, lessons, and observations on SaaS, straight into your inbox. Every week.
SaaS Dispatch Team

Subscription Billing Made Easy

Try for free

Recent Blog Posts

Ultimate guide transactional emails
Rethinking Transactional Emails - How to Ace Them, and Why You Should Do It

There's more to transactional emails than you think. Here's how to strike gold with them. Read More >

Failed payments and involuntary churn
Failed Payments and Involuntary Churn - The Definitive Guide

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 >

The singularity of Negative Churn
From Unit Economics To Negative Churn: Hitchhiking To SaaS Growth

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 >

Subscription billing software that lets startups deliver recurring happiness to customers.
How Chargebee Works