This article covers the Discount Code Exchange Incentive, a beta feature that lets you reward shoppers with a discount code on their next purchase when they choose to exchange an item instead of returning it. You'll configure this from the Offers tab on your return policies.

What it is

The Discount Code Exchange Incentive is a return policy setting that offers shoppers a one-time discount code (ie $15 off your next purchase of $100+) as an incentive to exchange an item instead of returning it for a refund.

• The offer only appears to shoppers who initially select to Return their item, not to shoppers who already chose to exchange. This nudges undecided shoppers toward an exchange without discounting shoppers who were exchanging anyway.

• Each shopper who sees the offer will receive a unique, one-time discount code if they complete an exchange.

• The discount code is emailed to the shopper once their return is processed.

Important: This beta does not manage interaction with Shop Now Bonus Credit. If your store offers Shop Now Bonus Credit, shoppers could see both offers in the same flow.

Follow the steps below to set up the Discount Code Exchange Incentive:

1. Navigate to Returns Management > Policy Settings > Return Policies and click into the return policy you want to configure.

2. Select the Offers tab.

3. Click Get started with return experience offers.

4. Click Edit next to Exchange to configure the incentive.

5. Set your Discount type (percentage or fixed amount), Percentage or amount, Code prefix, and Expires after (days). Minimum purchase (USD) is optional.

6. Then toggle on Turn on return experience offers for the discount code to start displaying as an offer to your shoppers.

Tip: Use a recognizable code prefix (e.g. LOOPEXC) so these codes are easy to identify later in your discount reporting.

Once configured, shoppers who choose to return an item in the portal will see a discount code offer before completing their return. This is a final incentive to nudge shoppers towards an exchange.

If the shopper accepts the offer and completes the exchange, they will see confirmation that the discount is locked in for their next order.

Does this work with Shop Now Bonus Credit?
Not yet. This beta is currently limited to merchants who don't have Shop Now Bonus Credit enabled, since shoppers could otherwise see both offers in the same flow.

Can I offer an incentive for Store Credit outcomes too?
Not yet. Incentives currently apply to the Exchange outcome only.

Will every shopper who returns an item see this discount offer?
Only shoppers who initially choose to return their item see the offer. Shoppers who already selected exchange as their outcome won't see it, since the goal is to nudge undecided shoppers toward exchanging rather than discount exchanges that were already happening.

How does the shopper get their discount code?
Each shopper who sees the offer and completes an exchange will receive a unique, one-time discount code emailed to the shopper once their return is processed.

Please reach out to support@loopreturns.com or your Merchant Success Manager with any additional questions.