How Chubbies increased customer lifetime value by 100% with Loop

The Challenge: Manual returns were slow and inefficient

Before partnering with Loop, Chubbies handled their returns process manually – which was just as inefficient as it sounds.

“Before, there wasn’t a way to think of returns as anything but a cost center,” says Dave Wardell, CFO of Chubbies. “We had a prepaid return label, they would ship it back, and if they wanted to exchange it for something they would write it on a piece of paper… half of the time we couldn’t even read it!”

Rather than helping their shoppers meet their goal of finding the perfect Weekend Wardrobe fit, the returns process often led to customer frustration and churn.

Loop Workflows automates the returns process

By empowering shoppers to use a self-service return portals with Loop Workflows, Chubbies is able to deliver a superior customer experience that makes it easy for shoppers to swap out products they don’t want for those they do. Chubbies can set up their Workflows with pre-set conditions to determine which products are return-eligible, and instantly deliver a refund or credit once the return has been approved. The portal collects data around return reasons, helping the brand better understand which products may not fit as described – and it frees up customer support time that would otherwise go towards managing returns.

Optimize Returns with Self-Service

Enhance CX with a superior returns experience

Shop Now boosts LTV by 100%

Using Loop’s “Shop Now” feature, Chubbies can deliver curated product recommendations for shoppers who are ready to exchange an item. They’re not limited to swapping out their purchase for the same product in a different size or color – they have access to exchange the product for any item in the Chubbies store, without having to return to their shopping cart.

An overlay bar tells them how much exchange credit they have available to spend on their order – and if the price is different, the difference will be automatically credited or debited back to their purchase method.

“Exchanges give us an additional 10% boost in LTV over refunds, which makes sense because you’re keeping sales in-house,” says Wardell. “Not only that, but the rate of upsell per return transaction… we saw that rate increase by 100%. Likely means $200k of incremental revenue for us this year. So cool!”

Keep Customers Coming Back

Cut customer churn in half with a curated returns experience

Bonus Credit incentivizes higher retention

When shoppers default to requesting a cash refund, rather than considering an exchange, Chubbies has a secret card up their sleeve: Bonus Credit.

Loop’s “Bonus Credit” feature incentivizes exchanges by offering shoppers an extra amount of store credit that can be applied towards the cost of a new order. If a shopper had planned to return a $50 pair of shorts, Chubbies can gift them an additional $10 in credit to apply towards a different item – and then encourage them to browse real-time inventory to find the right product. Bonus Credit helps Chubbies cut customer churn, and maintain long-term relationships with their shoppers.

Save the Sale

Cut refund requests by offering promotional incentives

The Outcome: A superior post-purchase experience that keeps shoppers coming back

Since embracing Loop to create a superior post-purchase experience, Chubbies has been able to reduce time spent on managing and processing returns, while helping shoppers resolve return issues much faster through automation.

And with the allure of bonus credit and a seamless shopping experience, shoppers are far more likely to choose exchanges or upsells over requesting refunds than they were in the past – resulting in improved customer loyalty and a higher lifetime value.

“Finding Loop helped us to start thinking about returns differently,” says Wardell. “We’ve evolved how we think about returns in general. We try to take a holistic approach to it around merchandising, the operations side of things, and customer experience… I think what opens that up is software like Loop that helps you to manage that customer experience in a different way.”