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Case Study

San Diego Hat Co Uncovers Product Insights by Empowering Customers

Read how San Diego Hat Company uses Returnly as a customer retention tool.

The Challenge

When business boomed during the pandemic, San Diego Hat Company found itself with a good problem - orders were pouring in, but the team was struggling to keep up. Director of ECommerce Shristy Chhetri recalls: “We were bombarded with online orders, which we knew meant returns would grow as well. At one point we were a month behind with processing returns. That’s when we knew we had to automate our process.”

The Solution

Finding a return partner that integrated with Shopify was at the top of the San Diego Hat Company’s list. “During our search, we instantly loved Returnly’s seamless process. Our deciding factor though was the hours and labor we knew we would save with Returnly’s level of automation, eliminating our need to manually process returns. We could quickly identify Returnly was the right solution for us.”

The Solution

The Results

Outcome #1 - Automation that cuts down on cost and labor

Chhetri recalls her previous process saying, “Prior to Returnly, we would manually create and send customers a label and form to ship back with their return. Once received at our warehouse, our team would review and refund each order. It was a very long process, changing hands many times and leaving room for confusion and frustration. We knew an increase in returns was a part of scaling. Fortunately, automating the process with Returnly allows us to cut hundreds of hours of manual labor and save on all the costs associated with that.” As a result, San Diego Hat Company now automates 97% of returns.

Outcome #2 - New insights from empowered customers

Chhetri and her team quickly realized that with Returnly, they could capture valuable feedback directly from their customers to make informed product and business decisions. “Last year we sold a large quantity of one specific hat, but we saw a higher than usual return rate. With the customer feedback Returnly captures, we could drive meaningful improvements and adjust the product accordingly. We are re-releasing it soon, which was made possible because customers were empowered to share with us.”

Outcome #3 - Increased loyalty and customer retention

San Diego Hat Company knows trends and styles change with the seasons. “It’s difficult to satisfy every customer. But even when we see items being returned, feedback on our returns and exchange process is always exceptional.”

Not only do customers love their process, but San Diego Hat Company also sees the impact of offering Returnly Credit which allows customers to find something new while waiting for their return to be processed. “Customer satisfaction is important to us and returns are a great way to retain customers because they can trust that if they need a different item, they can return as usual or find something new with their Returnly Credit. This is one of the many reasons we view Returnly as a valuable customer retention tool.”

  • Brand image

    Industry Hats, accessories

    Key Products Instant Exchanges, Returnly Credit

    Website returns.sandiegohat.com

  • Business Impact

    97% automated returns, 14% revenue retained by Returnly

Shristy Chhetri, Director of Ecommerce

“Returnly is a valuable customer retention tool for us because our customers can trust that if they need a different item, they can simply return as usual or find something new with their Returnly Credit.”

Shristy Chhetri, Director of Ecommerce

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