Bonus Credit

What is Bonus Credit?

Bonus credit is based on the merchant's amount and conditions. It provides customers with extra value when they choose to exchange products instead of returning them for a refund.

• Incentivizes exchanges over returns
• Reduces return rates and retains revenue
• Can be set as fixed amount or percentage
• Automatically calculated and applied to exchange requests
• Clearly displayed to customers in the return portal
• Flexible configuration based on business needs

Calculation Methods

The bonus credit can be set as either a fixed amount or a percentage:

• Fixed Amount: Customer receives a specific dollar/currency amount (e.g., $5 bonus)
• Percentage: Bonus is calculated based on the subtotal price (e.g., 10% of subtotal)
• Bonus credit is added to each qualifying exchange request
• If set as percentage, calculation is: Subtotal × Percentage = Bonus
• Total exchange credit = Original refund value + Bonus credit

Video Tutorial

Watch this video that instructs how to set up the promotion feature for exchange requests and how the promotion works in the portal.

Set Up in the App

Configure bonus credit settings in Returndotai Returns & Exchanges:

1. 1Go to Settings > Promotion > Bonus credit
2. 2Set up the amount that meets your business needs:
3. 3 • Choose between fixed amount or percentage
4. 4 • Enter the bonus value
5. 5Configure conditions for when bonus applies (if applicable)
6. 6Write a clear description to help customers understand:
7. 7 • How bonus credit works
8. 8 • What advantages they get by choosing exchange
9. 9 • Any conditions or limitations
10. 10Save your settings

Importance of Clear Description

Please set up a clear description to help your customers understand how bonus credit works and how they will have advantages when they choose exchange requests.

• Explain the bonus value clearly
• Highlight the benefit: "Get 10% extra credit for exchanges"
• Mention any minimum order values or conditions
• Use simple, customer-friendly language
• Include examples: "Exchange a $50 item and get $5 bonus credit"
• Set proper expectations about how credit can be used

Customer Sees Suggestion

When you enable bonus credit promotion and fill in the amount that is greater than 0, the customer will see a suggestion in the portal.

1. 1Customer accesses the return portal
2. 2Selects items for return/exchange
3. 3Sees prominent banner or message about bonus credit
4. 4Message highlights the additional value of choosing exchange
5. 5Clear call-to-action to encourage exchange selection

Placing Exchange Request

When the customers place an exchange request, they will receive an additional bonus credit based on the subtotal price.

1. 1Customer chooses exchange option instead of return
2. 2System calculates subtotal of items being exchanged
3. 3Bonus credit is calculated:
4. 4 • Fixed amount: Flat bonus added
5. 5 • Percentage: Subtotal × Percentage
6. 6Total exchange credit displayed clearly:
7. 7 • Original refund value
8. 8 • Plus bonus credit
9. 9 • Equals total available for exchange
10. 10Customer can use total credit to select exchange items

Management View in the App

Here is how the bonus credit is shown in the management section of the app:

1. 1Navigate to Management > Exchange requests
2. 2View individual exchange request details
3. 3Bonus credit is displayed separately from original refund value
4. 4See breakdown:
5. 5 • Original return value
6. 6 • Bonus credit added
7. 7 • Total exchange credit available
8. 8Track which requests received bonus credit
9. 9Monitor bonus credit effectiveness

Choosing Between Fixed Amount and Percentage

Different approaches work better for different business models:

• Fixed Amount - Best for:
• • Consistent product price ranges
• • Simple communication ("Get $5 bonus")
• • Budget control and predictability
• • Lower-value items
• Percentage - Best for:
• • Wide range of product prices
• • Higher-value items
• • Scaling bonus with order value
• • Premium products (10-15% feels more generous)

Setting the Optimal Bonus Amount

Guidelines for determining bonus credit value:

1. 1Consider your profit margins
2. 2Start with 5-10% for percentage-based bonuses
3. 3For fixed amounts, try $5-$10 as a starting point
4. 4Analyze your return vs exchange ratio before and after
5. 5Test different amounts to find the sweet spot
6. 6Higher bonuses for higher-value products
7. 7Seasonal promotions can have elevated bonuses

Effective Communication

Make sure customers understand the bonus credit benefit:

• Use attention-grabbing headlines: "Get 10% Extra on Exchanges!"
• Show the math clearly: "$50 return → $55 exchange credit"
• Place promotional messages prominently in the portal
• Include bonus information in email notifications
• Mention bonus credit in your return policy
• Use visual indicators (badges, highlights) to draw attention

Monitor Performance

Track how bonus credit affects customer behavior:

1. 1Measure exchange rate before and after enabling bonus
2. 2Track average bonus credit issued per exchange
3. 3Calculate ROI: retained revenue vs bonus cost
4. 4Monitor customer satisfaction with exchanges
5. 5Identify products with highest exchange rates
6. 6Adjust bonus amounts based on performance data
7. 7A/B test different bonus values

Seasonal Adjustments

Optimize bonus credit for different times of year:

• Increase bonus during slow seasons to drive exchanges
• Higher bonuses during inventory clearance periods
• Promote exchanges over returns before major shopping events
• Adjust based on inventory levels for specific products
• Special bonus promotions for new product launches
• Lower bonuses during peak seasons when demand is high