Customer Stories

How Inherit Clothing Co. reduced refunds 35% with Loop

With Loop's Shop Now feature & an exchange-first strategy, Inherit Clothing Co. reduced refunds by 35% and retained thousands in revenue. This is their story.

Returns are a regular part of any apparel business. If customers get the wrong size, they'll want to do a return. For a lot of brands, automating the returns process is enough of a reason to start using a solution like Loop.

Inherit Clothing Co. was one of those brands - happy to save time & money while not worrying about returns. But after 1 year with Loop, our Merchant Success team convinced Operations Director Anthony to implement the Shop Now feature.

With a bit of preparation & a few clicks, Inherit Clothing Co. was on its way to reducing refunds by 35%... and transforming the returns touchpoint into a huge profit center.


  • Problem: Reduce refunds & retain revenue.

  • Solution: Implement an exchange-first solution return system driven by Loop.

  • Key Loop features: Shop Now, Instant Exchanges


Results

  • 🚀 Reduced refunds by 35% (going from a refund rate of 100% to 65% in just one month after turning on Shop Now).

  • ☄️ Retained revenue of $13.8K by implementing an exchange-first return flow.

  • ⚡️ Increased upsell revenue by 333% via sales generated by Shop Now.


Want to reduce returns and boost revenue all at once? Book a demo and learn how Loop can make it happen.

Want to reduce refunds? Offer exchanges!

Every apparel brand wants to minimize refunds. But no matter how great your products are, refunds will always be a part of the process.

At Loop we've learned time and time again that the best way to reduce refunds is to eliminate them entirely. It's all about building a post-purchase system that guides customers towards choosing an exchange instead of a refund.

For brands that embrace exchanges, there are two keys to success:

  1. An exchange-first returns policy

  2. Returns automation tech to make it work

We had been working with Inherit Clothing Co. for about a year when they flipped the switch. The results were immediate and profound: in just one month, refunds had dropped by 35%.

How data convinced Inherit Clothing Co. to go exchange-first

Inherit's Operations Director Anthony Ekren was jumping for joy when he saw how much refunds had dropped with Loop's Shop Now feature.

But despite the instant success, it took a bit of convincing before they made the switch.

"My wife and I purchased the business in 2018, not knowing anything about retail. I mean literally zero. We took the approach where if we can measure it, let’s do it, if we can’t, don’t do it."

Us Loopers love a good data-driven approach - game recognize game. After working with Inherit for a few months, our customer success team saw their numbers and knew that Shop Now would be a massive unlock for Anthony's team.

"We worked with Brittni - her and everyone at Loop - they’ve done a very nice job of saying here’s where you are at, here’s all our features, and here’s the data to show why exchanges and Shop Now would work."

At Loop we're guilty of saying this over and over: the returns touchpoint can drive profits. But it's more than a mantra. It's a data-backed fact.

"We always knew this makes sense but we couldn’t measure it, so meeting with Brittni and looking at the numbers I was like, okay I know this is going to work."

Wondering if your returns process is up to par? Check out our guide on ecommerce returns best practices to find out!

How to build an exchange-first returns flow

It's hard to argue with results. When Inherit flipped the switch on Shop Now and Instant Exchanges, they saw results straight away. Not only were they reducing refunds, but they were retaining thousands in revenue too.

"As far as benefits go, we had an immediate response from our customers on how much they like the new features. Both the instant exchange and the Shop now feature we enabled. We are loving the reduction in refunds"

Before we touch on the Loop-only features that fueled Inherit's exchange-first system, it's worth mentioning that it takes two to tango.

Inherit has done a fantastic job telling their customers exactly what to expect when it comes to exchanges. For starters, they've written about it on their website in several places.

Not only does this act as a promotional tool by instilling buyer confidence, but it trains customers on how to approach returns. They've planted a seed: why refund when you can exchange?

It doesn't stop there though. Inherit talks about exchanges all through their post-purchase email flows too. They even tell customers about their approach to exchanges directly during live selling events hosted on social media!

"Our objective with returns when we first started, my wife Amy alway said, I want a good customer experience. We say you can always win on customer service. So when you find a software solution that has the same values there, it’s refreshing."

When you think about the results Inherit was able to achieve so quickly, it's an example of that perfect combination of service, strategy & technology that sealed the deal.

How Loop Returns helped with technology

Of course, with Loop you'll always get a returns automation flow that customers love:

By itself, Loop gives merchants a customizable on-demand returns portal with a lot of power and features in the back-end.

But for Inherit Clothing Co. there were a couple of Loop-only features that drove the exchange-first solution:

  1. Instant Exchanges

  2. Shop Now

1. Instant Exchanges

Instant exchanges is a Loop feature designed to incentivize exchanges over refunds. The premise is simple: with Instant Exchanges, customers authorize their credit card and their new items are sent out instantly.

Now all the customer needs to do is return their original items within the defined return window. Instant Exchanges are chosen 48% of customers, so they're loving it. And of course, brands love the retained revenue exchanges bring!

2. Shop Now

With the Loop-only Shop Now feature, customers can apply the value of their current return order to get whatever they want: a different size of the same items or something completely different.

This feature completely simplifies the exchange process. We dare say it's even easier than doing an exchange at an actual store!

Once a customer chooses the Shop Now option, the experience feels just like shopping. They are taken to the Inherit site with a floating overlay that shows them how much money they can spend on their exchange order.

And of course, customers can spend more if they want too. Inherit saw customers spending an average of $3 more on exchange orders!

Loop is intelligent software + friendly humans

When you talk to Anthony, you can tell he's a genuine guy. When he says things like "we care about customer experience", you believe it. It shines through everywhere the Inherit brand lives as well.

So when brands and people like this give us glowing reviews, we really feel the ❤️.

"It's been great - the service level I’m getting... I mean if I have a problem, I’m getting next day answers… the account managers have been awesome. They’re checking in which is rare with other apps."

To be fair, Anthony also does next day answers.

Even if you put all the happy thoughts aside & focus on the raw numbers, Loop is helping brands like Inherit Clothing Co. win. That's why we do what we do. Our quest continues - doing it together with all these awesome brands just makes it a lot more fun.

Join us: Book a demo with our team today. We'd love to show you what Loop can do for your business. Talk soon!

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