Credit — Overview & How It Works

A Simple Yet Powerful Customer Retention Tool

Credit allows merchants to assign value (store balance) to customers, which can be used as payment during checkout.

It is one of the simplest ways to:

✔ Encourage repeat purchase ✔ Retain existing customers ✔ Reward loyalty ✔ Handle compensation cases ✔ Reduce refund friction

1️⃣ When Should You Use Credit?

Credit is commonly used in the following scenarios:

🔹 Loyalty Reward

Instead of giving discount immediately, you can give RM10 credit for next purchase.

Effect: ✔ Encourages return purchase ✔ Increases customer lifetime value

🔹 Compensation / Service Recovery

If an issue happens:

Late shipment
Minor defect
Service inconvenience

Instead of refunding cash, you can issue credit.

Effect: ✔ Maintains revenue ✔ Preserves relationship

🔹 Promotional Campaign

Example:

“Spend RM150 today and receive RM15 store credit.”

This creates: ✔ Repeat purchase trigger ✔ Future engagement

🔹 Shipping Offset Strategy

Instead of offering free shipping, give credit equivalent to shipping value.

Psychological impact:

Customers feel they “own” the credit.

2️⃣ Credit Feature Specifications

Boxify Credit is simple and straightforward.

📌 Credit is Stored Per Customer

Each customer has an individual credit balance.

Credit:

✔ Is not transferable ✔ Is not automatically given ✔ Must be manually assigned by merchant

📌 Credit Has No Automatic Expiry (Unless Merchant Controls It)

By default:

Credit remains in customer account until used.

Merchant controls issuance.

📌 Credit Can Be Used as Payment

When enabled:

Customers can use available credit to offset order payment.

Credit works like internal store balance.

📌 Credit Is Not a Voucher

Important difference:

Voucher	Credit
Requires code	No code needed
Has expiry	Usually
Campaign-based	Balance-based
Applies to one order	Can be used partially

Credit behaves like stored value.

3️⃣ How Customer Uses Credit During Checkout

When credit payment is enabled:

✔ Customer sees available credit balance ✔ Can choose to apply credit during checkout ✔ Credit reduces payable amount

If credit exceeds order total:

Remaining balance stays in account.

4️⃣ Why Credit Is Powerful for Retention

Unlike vouchers:

Voucher = immediate discount Credit = future purchase trigger

Credit:

✔ Increases repeat purchase probability ✔ Reduces refund loss ✔ Builds long-term customer value ✔ Encourages customers to return

5️⃣ Smart Credit Strategy Ideas

Instead of:

“RM20 off today”

Try:

“Receive RM20 credit for next purchase”

Effect:

✔ You secure today’s revenue ✔ You create tomorrow’s order

💡See also how to setup Credit