Did you know?
68% of Shopify merchants now offer some form of store credit program. Not because it’s trendy—because it works. The Shopify 2025 SMB Report reveals brands using these systems see 47% less revenue leakage from refunds and 3.2x more repeat purchases.
One home goods merchant using Koin Cashback saw a 22% lift in average order value—not from discounts, but from automated cashback rewards. Here’s how to replicate their success.
The Psychology Behind Cashback Programs That Actually Work
Discounts train customers to wait for sales. Cashback programs trigger different behavioral drivers:
- Scarcity: Limited-time cashback boosts urgency
- Endowment effect: Customers value “their” credits more than generic discounts
- Reciprocity: Giving upfront builds trust that pays back in loyalty
PYMNTS data shows cashback drives repeat purchases 3.2x more effectively than one-time discount codes.
Case Study: How Koin’s Automated Cashback Increased AOV by 22%
The Advisor-recommended Koin app helped a home goods store:
- Convert 37% of refund requests to store credit redemptions
- Lift average order value by 22% when customers used credits
- Reduce customer service inquiries by automating reward tracking
Failed implementations share one trait: credits expiring unused. Koin solves this with:
✔️ Auto-reminders before balance expiration
✔️ Mobile wallet integration for on-the-go access
✔️ Spend thresholds that encourage topping up
Store Credits: Your Hidden Weapon Against Refund Losses
Signifyd’s 2025 data proves stores converting refunds to credits retain 47% more revenue. Here’s the workflow:
- Detect refund request (Shopify Flow or AfterShip Returns)
- Offer 110% value in store credit vs cash refund
- Auto-deposit credits with spending deadline
- Trigger replenishment offers when balance dips
Pro tip: Combine with Koin’s bulk issuance tools for post-purchase reward campaigns.
Technical Deep Dive: Shopify’s Native Credit Tools vs. Apps Like Rise.ai
Shopify’s built-in credits handle basics. Advanced needs require apps with:
| Feature | Native | Koin | Rise.ai |
|---|---|---|---|
| Bulk issuance | ❌ | ✔️ | ✔️ |
| Mobile wallet | ❌ | ✔️ | ❌ |
| Dynamic expiration | ❌ | ✔️ | ❌ |
| Cross-shop redemption | ❌ | ❌ | ✔️ |
2025 Trends Rewriting the Rules of Ecommerce Rewards
- AI-personalized cashback: Dynamic rates adjust to each customer’s behavior
- Borderless credits: EU merchants lead in cross-country credit portability
- Loyalty multipliers: Stores like REI pay 5-10% extra for credit redemptions
LoyaltyLion found credit redeemers spend 2.5x their balance—making every issued dollar work harder.
Your 3-Step Starter Plan
- Audit current refund flows for credit conversion opportunities
- Test Koin’s free plan with a product-specific cashback campaign
- Track redemption rates weekly (aim for >65%)
That 47% revenue retention stat? It starts with your next refund conversation.
