How DailySale uses Loop to optimize returns and reduce fraud

The Challenge: A complicated manual returns process

At DailySale, return rates can be high, particularly among their electronics products. The company offers a 30-day return window, and incentivizes customers to choose an exchange or store credit by charging return fees on refunds.

At DailySale, certain products must meet specific conditions in order to be restocked or resold after being returned. For electronics, for example, certain products must be restored to factory settings before being mailed to the warehouse. DailySale has also seen increasing numbers of fraudulent returns, which can be difficult to detect at scale when processing returns manually.

The company needed support to streamline their returns process. Loop’s Workflows feature helps them automate returns and ensure that more items come back in a resellable condition. For instance, one such workflow automatically asks customers who are returning cell phones whether they’ve reset their device before sending it back—reducing CX time spent on manual returns processing.

They also wanted to provide incentives for customers to choose exchanges or store credit, rather than requesting refunds, so that they’d be able to retain more of their revenue and preserve the customer relationship—even in cases where a product didn’t meet the customer’s expectations.

Loop’s customer-focused return experience, along with its customization features, made it the clear choice to help DailySale meet both goals.

Workflows reduces manual labor and mitigates returns fraud

With Loop’s Workflows feature, brands can easily customize automation sequences into their operations, saving time and stress. At DailySale, Workflows help reduce manual support costs on 76% of their returns.

DailySale uses Workflows to:

• Incentivize exchanges and retain revenue by charging fees on refund requests
• Cut their overall operations costs
• Improve their margins by limiting returns on products which are unsellable
• Mitigate fraudulent returns

To determine an item’s return eligibility, one workflow automatically asks a customer specific questions. This helps DailySale reject returns on products that either aren’t return-eligible or determine whether the customer needs to complete a separate step before returning the item, as with factory resets for electronics.

“We have a workflow that asks them if they’ve factory reset their device,” says Hofstatter. “If it’s not the desired response of what we’re looking for, then we’ll block that return and have customer service reach out. If it is, we allow them to continue on with the return.”

Instances of fraud are also increasing at DailySale, and while the company hasn’t found a foolproof way to stop it, Loop makes it easier for them to identify potential abusers.

“If a customer returns more than four products within a 30 day period, then we’ll block future returns. Then they have to reach out to customer service and that allows us to look into the issue.” says Hofstatter.

Workflows

Set conditions for returns, and detect fraud faster

Shop Later helps DailySale increase revenue retention

While DailySale wants shoppers to be satisfied with their purchases, they incorporate a small return fee to disincentivize refund requests in favor of exchanges or store credit – but some customers inevitably still choose to get a refund, despite the fee.

With Loop’s Shop Later feature, DailySale is able to win back customers who’ve already requested a refund by offering them bonus credit that they can apply towards a future purchase from the shop. By providing customers with additional store credit, they’ve seen 8% of store credit offers accepted, which leads to customer retention and potential upsell revenue on top of the original purchase price, all from a return request that would have otherwise resulted in issuing money back to the customer. In fact, their store credit numbers are twice the industry average for their vertical.

Shop later

Boost customer retention and revenue rates

The Outcome: Automated processes that cut CX time and boost customer retention

DailySale’s partnership with Loop is a valuable collaboration that focuses on ongoing optimization across all aspects of the brand’s returns performance.

Using Loop’s self-service returns platform makes it easier for customers to walk through the returns process independently, freeing up the CX team to handle the higher impact situations that can’t be easily automated. DailySale can track return metrics across different product lines and on a customer-by-customer level, alerting them to trends that might signify manufacturing errors or fraudulent customer behavior. And by incentivizing shoppers to “Shop Later” with bonus credit, they’re retaining revenue–and a valuable customer relationship–that they’d otherwise lose to refunds. Plus, since 2022, Loop has paid for itself six times over, with even greater cost savings reflected on top of that.