The good news is that the difference between loyalty points and loyalty credit is that they both have very distinct characteristics. Loyalty points are additional bonuses that can be credited to customers for doing various tasks that promote sales and brand enthusiasm. Store credit, on the other hand is used to keep customers who have already made purchases shopping at the store. Here is some more clarification:
The key difference between store credit and loyalty points is how they are used, and received by customers.
One main difference is that loyalty points have their own corresponding currency.
For example, Ren’s Pet’s has a system that converts each point earned into 1 dollar to use on their next purchase.
Store credit, on the other hand, is simply money converted into store-specific dollars. It’ll show up on the client’s account balance.
Teal & Tala shows your returned credit at the top right of the screen.
Still confused? Let’s go into detail.
When you want to implement a rewards system to your store, it’s good to know when to use loyalty points. Here are a few examples of what loyalty points are used for:
When accounting for loyalty points most merchants don’t include points as a liability on their balance sheet, points are treated simply as discounts and do not appear on invoices. However, in few cases larger companies using a loyalty program will actually account for their loyalty points because the outstanding point discount value is extremely high
A store credit system can be used for numerous reasons. First and foremost, a store credit system allows customers the option to obtain a refund for an unwanted or defective product. It allows support the option to give back to customers who are either unsatisfied with your product or service or as just plain incentive. Store credit is also an excellent way for customers to gift their friends and family from your store.
Since store credit is going to be used exactly as customer cash, merchants would account for the credit the same way they would with their regular currency. To make things easier, Magecredit has a store credit report that reports for you the dollar amount of outstanding credit from that terms balance. The store credit will appear on the invoice for each order a customer makes, if the credit was used.
Absolutely! There are many, many merchants using a Sweet Tooth loyalty program in combination with Magecredit to give customers store credit when they have refunds, etc.
Some people mistake store credit for loyalty points programs. This happens a lot when merchants and developers contact us at Magecredit asking how the points are distributed. This may be due to a language barrier. They often say "loyalty credits", which is a phrase that isn't correct English. Perhaps they're mistaking "credits" with "points", or they're really looking for "store credit" and they're implying that it is for loyal customers, and it keeps customers shopping at the store - which it does.
If anyone has any more info about the potential miconception or language barrier, please comment bellow! We'd really appreciate it!