How Magic Needles replaced discounts for category-based store credit
Magic Needles case study snapshot
Heavy discounting led to one-time purchases. Points programs felt untrustworthy. Shopify's native store credit lacked flexibility across varying product margins
Category-based store credit through Koin allowed Magic Needles to set different credit rates by collection, maintaining margins while rewarding customers generously
Customers return naturally without discount dependency. Margins protected during promotions. Retention improved with honest, flexible reward
The challenge: Why traditional retention tactics don't work
Kalpesh Patel knew store credit worked. He’d seen it drive repeat purchases better than almost anything else.
He previously used reward points. However, there was a problem with this approach.
Store credit felt different. One store credit = one rupee. Simple. Honest.
When Shopify rolled out native store credit, Magic Needles jumped on it. Finally, a built-in solution. Except it wasn’t flexible enough.
Magic Needles sells everything from budget-friendly hooks to imported premium yarn. Margins vary wildly. A flat store credit rate across the board? That’s a fast track to bleeding money on low-margin products while undervaluing high-margin ones.
The solution: Category-based store credit rewards
They use store credit in two main ways now:
Rewarding their best customers. Not everyone, just the segment Kalpesh believes truly deserves it.
Replacing discounts during sales. Instead of slashing prices, they offer store credit. Price integrity stays intact. Future revenue gets locked in.
Kalpesh shares one of the most valuable outcomes: enabling a unified store credit experience across channels.
The results: More repeat purchases without discounts
With category-based store credit live, Magic Needles now:
Retains customers using rewards that feel real (because they are)
Runs promotions without torching margins or training customers to wait for discounts.
Tailors incentives that feel intentional, not generic
Keeps full control as their catalog and economics shift
Instead of chasing one-time sales with price cuts, they’re building a base of customers who come back, because it makes sense to.
Working with Koin: Implementation and support
Magic Needles proves that retention doesn’t require racing to the bottom. With the right tools, you can reward generously, protect margins, and build a customer base that actually sticks around.
Ready to retain customers without sacrificing margins? With Koin, you can create flexible, category-based store credit programs that work for your business model, not against it.
About Magic Needles
Magic Needles (est. 2015) is India's leading knitting and crochet supplier, connecting Indian artisans with makers who value quality and sustainability. Their sub-brand, Hobby Store, makes premium supplies accessible and empowering.
Platform: Shopify Advanced
Industry: Yarns & Handmade Crafts
Website: https://magicneedles.in/
Get value insights to grow your stores!
-About Author
Emma C.
As the Chief Marketing Officer at KOIN app, I’m here to build a robust ecosystem by collaping with Shopify apps. Together, we can create seamless integrations that add more value to our shared customers.
KOIN helps merchants retain customers, increase repeat purchases, and drive loyalty by offering cashback and store credit rewards.
📩 Let’s connect! emma@getkoin.io
