Introducing Refund Incentive™, a Revolutionary New Refund Tool to Bank On

Refund Incentive™ is a new refund tool for retailers, that leverages returns for an improved bottom line and a more rewarding customer return experience.

Redmond, Washington — May 23, 2023,  Customer Loyalty Accelerator (the CLA App) announces the release of Refund Incentive™, a new feature of the CLA customer loyalty program that leverages customer returns into increased sales and customer loyalty.  Simply put, the Refund Incentive™ tool converts traditional cash and credit card refunds into instantly redeemable store credits, then banks and manages those credits in the merchant’s CLA loyalty account.

Technological Edge Sets the Stage.

 Refund Incentive™, is a major advancement in the processing and management of store credit refunds and sets the retailer stage with a technological edge. It empowers merchants to not only capture refunds as instantly redeemable store credits, but also to bank and manage the store credits in the CLA customer loyalty app.

Convert. Bank. Manage.

 To use the Refund Incentive™ tool, it’s as simple as “convert, bank, manage” via the admin panel of the retailer’s CLA Customer Loyalty account.

  • Convert the refund to store credits.
  • Bank the store credits in the merchant’s customer loyalty account.
  • Manage the store credits via the loyalty app indefinitely.

Set Up Fast. 

While store credit systems typically take some time to set up, the Refund Incentive™ set-up time is relatively fast. Merchants first sign up for a paid subscription to the CLA customer loyalty program, then enroll customers, one at a time, into the same program, for no extra cost. Each customer will be assigned their own account within the merchant’s loyalty program where store credits will be banked and stored. The Refund Incentive™ tool is simple to install, easy to use.

Energize with Incentives.

Refund Incentive™ is the first tool of its kind, designed to incentivize customers to say “YES!” to store credits, and streamline and automate the process of issuing and managing store credits. Retailers can sweeten their Refund Incentive store credit refund packages by adding free return shipping, bonus loyalty rewards, or free merchandise, for example, to further incentivize customers to accept a store credit refund.

 As the retail industry strategizes ways to increase 2023 sales and reduce the 2022 reported average 16.5% return rate per National Retail Federation, retailers are looking for creative solutions to cut expenses. One solution is CLA’s new Refund Incentive™ which gives merchants the technical capability to turn around losses by leveraging returns into store credits to reduce the return rate. Another option is to eliminate free return shipping; More than half of all retailers have already dropped free return shipping. Other retailers have tried to recoup lost revenues by reducing return windows from 45 days to 30 days, for example.  

 These cost-cutting measures open the doors for savvy retailers who can now use these same incentives plus loyalty rewards to inspire return customers to accept or request Refund Incentive™ store credit refunds.

Examples of Incentives  

  • Free return shipping
  • Free loyalty rewards (minimum $5 value of instantly redeemable bonus store credits)
  • Free t-shirt or mug, etc.

In addition, savvy retailers can update their return policies to offer store credits to customers who missed the deadlines of the shortened return windows, who don’t qualify for a cash or credit card refund or may need extra time “adjusting” to paying for return shipping. 

 “Retailers view the return process as an opportunity to further engage with customers, as it provides additional points of contact for retailers to enhance the overall consumer experience.”  

– Mark Mathews, NRF Vice President of Research Development and Industry Analysis


 Refund Incentive = Store Credits and Much More

One of the best ways that will lead to long-term revenue and customer retention is to reduce the return rate via a store credit refund, according to Shopify and several industry leaders. For savvy retailers, a store credit refund represents a powerful customer service tool and is a vital component of a retailer’s marketing strategy. It’s common knowledge within the retail industry that a store credit refund is preferred over cash refunds for most retailers. 

Refund Incentive™ = store credits and so much more. Plus, Refund Incentive™ puts the merchant back in control of the customer’s future spending.


1. Cash – no control of future spending.

2. Credit Card – no control of future spending.

3. Merchant Card – open to fraud/lost cards, not tied to any incentives.

4. Refund Incentive – Heavy influence of future spending  


Results Delivered. 

The result for merchants is the technical capability to reduce the return rate and improve the bottom line, key goals of retailers everywhere. The result for customers is delight over customer return experiences that are fast, efficient, rewarding, and loyalty-building.

 Refund IncentiveAvailability  

Refund Incentive™ is bundled with the CLA Customer Loyalty Program, available for subscription at Clover and Shopify. See pricing information at   

Once subscribed, merchants then enroll their customers in the customer loyalty program to activate their individual free sub accounts that will house the store credit refunds.   

About the CLA App

CLA is the Customer Loyalty Accelerator© app, a simple-to-use customer loyalty program that builds customer loyalty fast.   

What differentiates the CLA App from other loyalty and rewards programs? Its speed increasing customer loyalty, return visits and higher spending, and its powerful functionality of unique tools, such as “CLA Instant Rewards©,” “Inventory Incentive©,” and “Refund Incentive™”.

Customer Loyalty Accelerator, a division of Encore Incentives, Inc., is a leading developer of instantly redeemable customer rewards programs.