How Huk Used Rise.ai & Loop's Integration to Reduce Returns Expenses While Maintaining Customer Satisfaction
Refund Cost Reduction
Challenge: Reduce Returns expenses While Offering Customers a Great
Online retailers experience a higher return rate than physical stores, often estimated at around 20%. If an online retailer can reduce their return rate, that can mean a significant improvement to business growth. Performance apparel brand Huk Gear decided they wanted to leverage the returns experience for business growth – both directly, through reducing costs, and indirectly, by giving customers a great returns experience that would keep them coming back.
When Huk Gear discovered Rise.ai’s automated Store Credit Rewards program integration with Loop Returns, they knew this was the key they had been looking for.
Solution: Rise.ai Store Credit via Loop Returns
The best return option, from a retailer’s perspective, is an exchange, which gives them immediate retention of the original revenue. If a customer doesn’t want to exchange, however, the next best option is to refund the purchase with Store Credit. In fact, in some ways, Store Credit is even better than an exchange, because it generates the possibility of an upsell. When Huk Gear implemented Rise.ai Store Credits Refunds With Loop Returns, they were able to offer their customers the possibility of receiving refunds directly to their personal Huk Gear account. Returns were seamless, Store Credit was easy to access and use, and the possibility of regaining lost revenue by customers spending more than their refund value was drastically increased.
Loop Returns is the exchange-first returns platform for scaling Shopify brands. The platform helps brands retain revenue on returns by offering a seamless returns process. The process is as enjoyable as shopping, and encourages exchanges instead of refunds, continuing the customer relationship and leading to higher CLTV.
“Since launch, we have had hard times figuring out our returns policy and strategy.
Thanks to Rise.ai and Loop, our returns process is hassle free, letting every customer choose his/her way to handle returns.
Using this integration not only increased customer satisfaction but also impacted our bottom line”
MJ Murphy, VP Digital Commerce
Results: 23% Reduction in Returns Costs – and Happy Customers Coming Back to Spend More
Over a two month period, Huk Gear issued over $30K in Store Credit for returns and they saw impressive results. First of all, their cost of refunds was reduced by 23%! But the Rise.ai – Loop Returns integration didn’t only save Huk Gear money; it earned them money. Huk Gear’s customers appreciated the ease of returns and the convenience of the Store Credit, so they showed it with their spending patterns: a 2.7x upsell on the Store Credit initial value!