Redemption stores and store credits: Get the lowdown
We all love feeling appreciated! Michael J Cole said it to us best when he said, “There’s a word in Louisiana, ”lagniappe”, which means you give a little something for free, and in doing so, you can capture the hearts of your customers. At Caribou [Coffee], we used to put a chocolate-covered espresso bean on the top of the specialty coffee for free. It wasn’t much of anything, but it was extra”.
Loyalty programs and redemption stores are becoming increasingly popular among consumers and can be a valuable tool for businesses to increase customer loyalty and engagement. By offering store credits and other rewards, businesses can incentivize customer behavior and build long-term relationships with their customers.
- In a survey conducted by Incentive Magazine, it was found that 79% of employees feel more motivated when they receive rewards or recognition.
- In the same survey, 84% of employees said that rewards and recognition programs made them feel more appreciated.
- According to a report by Wise Marketer, the global loyalty management market is projected to reach $7.6 billion by 2026.
But wait, have you ever heard of a redemption store or store credits?
If not, don’t you worry; we’ve got you! By the end of this article, you’ll be a redemption store expert (but be warned, you’ll only be an expert if you read right to the end of this article. Just, you know… FYI).
What is a redemption store?
A redemption store is a retail store or online platform where customers can redeem points, tokens, or rewards earned through a loyalty or rewards program for merchandise, services, or discounts. These stores typically offer a wide range of products and services that customers can select from using the points they have accumulated through the program.
💡Top tip: Encouraging higher productivity and improving retention can be achieved by rewarding your employees. However, why limit these rewards to just the end of the year? A pop-up shop can be a fantastic way to show appreciation to your employees anytime throughout the year. You can organize a pop-up shop during the holiday season to offer unique and practical corporate gifts, but it’s just as feasible to create one during the summer to surprise your team with a special celebration or event.
What are the benefits of using a redemption store?
Now, you might be thinking, “why should I care about a redemption store?” Well, let us tell you, there are a ton of benefits to using one. Here are just a few:
- Save money – Redemption stores can be a great way for your customers, employees, or clients to save money on your products. Instead of paying full price, they can use your earned points to get a discount on their purchase, which can add up over time.
- Get more bang for their buck – In addition to saving money, redemption stores also offer the opportunity for customers to get more for their money. With the points they’ve earned, they can often get a higher-value item or service than they would have been able to afford otherwise.
- Reward them – Redemption stores allow you to treat your customers to something nice without having to spend any extra money. They can use your points to get something they’ve bookmarked or try something they may not have purchased otherwise.
- Build loyalty – By allowing your customers to participate in a rewards program and earn points, you’re also building loyalty through the store. Your customers are more likely to continue shopping with you in the future, which can lead to even more rewards and benefits.
💡Top tips: Looking for ways to give back to your team through a redemption store? Download our redemption store ideas cheat sheet now!
Alright, the suspense is killing me… what are store credits?
Store credits are like a virtual currency that your shoppers can use to make purchases at a particular store. These credits are typically earned through a rewards program, where customers can accumulate points based on their purchases or other actions, like referring a friend to the store.
How do you use them? It’s actually pretty simple – when they’re checking out, they just need to select the option to use store credits, et voila, the discount will be applied to their total.
Easy peasy, right?
How do redemption stores work?
Now that we’ve covered the benefits of redemption stores let’s dive deeper into how they work. As we mentioned earlier, redemption stores typically operate through a loyalty or rewards program.
When your customers sign up for the program, they’ll usually be given a certain number of points to start with. From there, they can earn more points by making purchases or completing other actions like leaving a review or signing up for a newsletter.
Once they’ve accumulated enough points, customers can then redeem them for merchandise, services, or discounts offered by your redemption store. The number of points required for a certain reward will vary from store to store, so be sure to be clear about how your rewards program works.
How can I manage a redemption store?
If you’re wondering – “how do I keep track of all these points and rewards?” this leads nicely into our next point: choose the right online store technology. Brikl redemption stores allow you to track exactly how many store credits or points your customers are using and have left on the backend. It even automates the process of renewing credits, which is great for subscription models, for example.