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How Chubbies increased customer lifetime value by 100% with Loop

Optimizing the returns process with Loop helped Chubbies transform returns from a cost center to a profit center. 

Estimated reading time: 7 min

Chubbies with Loop:

100%

CLV increased by 100%

100%

Upsell rate per return increased by 100%

$200K

Annual increase in incremental revenue

Chubbies Logo

Learn more about Chubbies:

Founded in 2011, Chubbies builds well-crafted menswear products that give “Friday at 5pm” vibes, including shorts, swimwear, polo shirts, aloha shirts, t-shirts, hoodies, and more. The brand focuses on delivering the perfect year-round Weekend Wardrobe for men, with comfortable clothing designed to fit every type of body – paired with a cheeky, irreverent brand voice that’s helped Chubbies dominate the D2C casual menswear market.

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.

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!”

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.

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.”

Be like Chubbies, and increase your CLV.

Switch to Loop and see your exchanges and upsells go up, effortlessly.

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