How LSKD increased their upsell value per return with Loop

By partnering with Loop, the Australian sportswear company LSKD has added $128,000 in retained revenue and improved their customer experience.

Industry
Apparel

Previous returns solution
Manual

Key features
Shop Now
Bonus Credit

“Loop’s allowed us to stop thinking of returns as a returned item or returned revenue and start thinking of it as a returning customer, so we can wow the shit out of them,” says Jemma Cumming, Continuous Improvement Lead at LSKD.

LSKD is a functional sportswear brand focused on helping its customers push past their limits – just like they’ve done as a brand.

Started in 2002 by CEO Jason Daniel, then Loose Kid Industries has evolved into the global ecommerce business we know today as LSKD. They  recently built a brand new 15,000-square foot fulfillment center that served over 19,500 customers worldwide last year – and LSKD now brings in $50 million a year.

One of LSKD’s core values is to improve by 1% every day – striving to create stylish and high-performance workout gear and accessories that help its customers “chase the vibe.” 

Even so, not every product is a fit for every customer – and LSKD’s return process was slow and tedious for team and customers alike. They knew they could do better. And with Loop, they did.

Since partnering with Loop, LSKD’s achieved:

  • 53% of revenue retained from returns 
  • $128,000 in upsell revenue
  • $3.03 average upsell per return
  • Return processing time decreased to less than a week 
  • Higher CSAT and NPS scores


Challenge

As a growing ecommerce business, LSKD needed to offer customers the options to return or exchange items that didn’t work for them – but they didn’t have an automated process for managing returns.

Every time a customer requested a return, they would need to engage directly with customer support, and the entire process could take six weeks or longer. The company didn’t have an option to offer exchanges seamlessly, so they missed the opportunity to retain revenue from offering customers a different option they might enjoy. 

Overall, the returns process provided a poor customer experience that didn’t match the rest of their brand – and led to lost customer relationships that could have been retained with a smoother process.

Solution

By implementing Loop’s exchange-first automated returns management solution, LSKD was able to transform the returns process into a seamless experience that helped them maintain more revenue – and keep more returning customers.

In particular, the LSKD team was drawn to two of Loop’s additional features: Shop Now and Bonus Credit.

  • Shop Now enables customers to shop across LSKD’s entire real-time inventory when considering a product exchange, leading to a seamless exchange process with endless potential for upsells, as customers have the chance to consider any product in the store. 

  • Bonus Credit sweetens the deal even more, offering customers extra store credit to put towards another purchase to incentivize customers who might otherwise seek a refund – helping LSKD keep the customer relationship in play and providing opportunities for more retained revenue.

“Thanks to Loop, LSKD sees returns as another revenue channel now. Loop gives us the tools to encourage returns and empowers customers to buy with confidence,” says Cumming.

Customers can now initiate a return on LSKD’s self-service platform, with a simple, intuitive process that aligns with LSKD’s goals of delivering a superb customer experience through every brand interaction. And they especially love the Instant Exchange function, which 37% of customers who’ve made returns in the past year have used to replace the item instantly.

Loop’s platform offers detailed analytics, which LSKD can use to gain insights into what’s working and what’s not in the ecommerce experience. By getting a granular view on why customers are returning certain items, they’re able to make improvements to their inventory and their product descriptions that can help them lower the return rate on specific products or categories, building continuous improvement into their ecommerce operations based on Loop’s data.

Cumming and the LSKD team have also been wowed by the collaborative nature of their Loop partnership, and the creativity, insights, and energy of their Loop merchant success manager, Remi Williamson.

“Remi is a star!” says Cumming. “She takes the time to understand our brand and our journey. It’s amazing what we’ve been able to build together.”

“One of LSKD’s core values is to be 1% better every day and to do more with less and constantly innovate. Loop does the same thing. They’re constantly working to set the standard. They listen to what we need and come up with new features we didn’t even know we needed. They’ve been a huge part of our growth and success. We really appreciate challenging the norm when it comes to returns.”

Meet Jemma Cumming, Continuous Improvement Lead at LSKD

I had the opportunity to join LSKD at the beginning of its major growth journey and the rest is history. I now get to spend my days analyzing and improving on our customer journey while creating new processes and ways of connecting with our community across the entire business. I love to learn and challenge myself.

I absolutely LOVE the beach and anything to do with saltwater, sun, sand… It’s where you’ll find me in any spare time with my daughter and partner. We love to travel to new coastal locations, camping and just really soaking up any dose of Vitamin Sea we can get.