How JAXXON uses Loop to optimize operations and increase revenue

The Challenge: Lack of data

JAXXON first launched on Shopify with a completely manual returns process.

“The business was started out of our founder’s apartment. They packaged all the orders themselves, and took them to the post office,” says Caela Castillo, Director of CX. “We soon realized that doing returns manually through Shopify wasn’t going to be scalable, and things were growing so fast that we wanted to make sure that we had a solution that solely focused on returns.”

The ability to automate returns and integrate with their existing tech stack were crucial features of JAXXON’s ideal returns solution.

“Both the Shopify integration as well as the Gorgias integration were very important to us,” Castillo adds. “Being able to have all that information in one place enables us to gain data from those returns.”

They chose Loop as their returns management solution in 2020, because it could not only automate returns functionality, saving time on the back end – but could also integrate with their existing solutions, surfacing data insights that the JAXXON team could use to enhance operations and build a better experience for customers.

Shop Now increases customer upsells

When customers request returns, they don’t always want a variant exchange – so using Loop’s Shop Now feature encourages them to try out a new product instead of getting their money back.

When customers use the Shop Now feature, they can shop JAXXON’s entire product catalog effortlessly, increasing the likelihood they’ll find something they like to exchange for. JAXXON even sweetens the deal for customers by offering them Bonus Credit to apply towards a new item.

Loop offers JAXXON the flexibility to iterate on their offers to determine what resonates best with their shoppers.

Originally, the brand offered a default $20 bonus, but they’ve since switched to a tier-based model that’s tied to the price of the original item being returned – a change that’s helped them double the amount of Shop Now exchanges, and increase upsell revenue by over 4%.

“We’ve seen a huge increase in customers choosing Shop Now. It went from 9% to 18% after we implemented the policy changes Loop recommended,” says Castillo. “The flexibility to experiment on our offers with Loop has helped us find great opportunities for revenue growth.”

Shop now

Boost revenue retention with upsell offers

Workflows streamlines CX and protects the brand from abuse

The business impact of using Loop extends beyond increased upsell and revenue retention – JAXXON has also found it a powerful solution for streamlining efficiencies in their operations.

The jewelry brand uses Loop’s Workflows feature to automatically determine conditions for product returns, ensuring compliance with the brand’s return policies without requiring manual support. 

“We have so many different policies and procedures based on different types of products or different situations or even promos,” says Castillo. “So Loop’s Workflows feature allows us to be able to customize the process without making it a clunky experience for the customer.”

Returns abuse and fraud is a growing problem in ecommerce, and JAXXON is no exception – but with Workflows, JAXXON is able to put protections in place to stop abusers in their tracks.

“We have workflows in place where if a customer makes a certain amount of returns within a certain timeframe, those returns will be routed for manual review,” says Castillo. “From there, we can determine the appropriate outcome for the customer. We can add details on the timeline so we have a record should the customer challenge the outcome or request a chargeback. Loop gives us more flexibility and control where we need it.”

Workflows

Streamline CX while preventing abuse

Insights support an improved customer experience

Loop’s Insights feature, which helps merchants monitor trends in returns data, has been a treasure trove for JAXXON.

“We’re at a point where we look at really granular insights with product returns, things like sizing and quality, even tracking our fulfillment errors and customer behavior,” says Castillo.

The team is able to use this data to optimize the customer experience, leading to higher customer satisfaction.

“It was helpful to see how many people were returning things that were too small, and it helped us realize that our suggested sizing wasn’t accurate,” says Castillo.

By understanding why shoppers are returning products, the brand is able to better educate customers to ensure that they’re choosing the right product for their needs in the first place – leading to lower return rates due to sizing issues.

“We also noticed that some chains were coming back slightly off size. So we were able to bring that data to our manufacturer and say things like, ‘These are meant to be eight inches, but it looks like they’re 7.55.’”

JAXXON is also using the Insights data to optimize operations across the board and deliver a better experience for their customers. “We use that data to change how we describe products, and it’s led to more size guides and educational material to ensure that our customers get the right fit the first time around,” Castillo adds.

Insights

Surface the data you need to improve operations and reduce returns

The Outcome: Optimized Operations

Loop integrates effortlessly with Shopify and Gorgias, so the CX team always has complete visibility into the customer journey, making it easy for them to customize options to ensure that their shoppers have a positive experience with the brand.

By partnering with Loop, JAXXON has not only been able to automate and streamline their returns process – they’ve been able to access a wealth of data insights to improve their product catalog and customer experience.

The Impact: 54% increase in retained revenue

Since shifting to Loop, JAXXON has converted 46% of refund requests to exchanges and store credit options. By leveraging Loop’s revenue retention features – Instant Exchange, Shop Now and Bonus Credit – JAXXON is retaining 54% more revenue that they’d otherwise lose to refunds. And by delivering a superior returns experience, they’re driving higher customer retention and loyalty.

Overall, partnering with Loop has led to greater efficiencies and better data insights in the returns process, ensuring that JAXXON can deliver a great customer experience every time.