Back to Case Studies
L

LuxeHome

Premium Home Decor • $8M ARR

How a premium home decor brand recovered $49K in revenue leakage during their peak holiday season.

$49K

Total leakage found

287

Policy violations

33x

ROI on audit

1.9%

New refund rate

The Problem

LuxeHome scaled from 1,200 to 4,500 tickets per month during the holiday season. To handle the surge, they hired 8 seasonal agents.

Their QA team only had bandwidth to spot-check 5% of tickets. The refund rate jumped from 2.1% to 3.8%, but leadership couldn't pinpoint why.

Refund Rate Spike

2.1% → 3.8%

QA Coverage

Only 5%

What Merro Found

Seasonal agents were approving “buyer's remorse” returns as “damaged product” to avoid escalations. This pattern repeated across 287 tickets.

Policy stated buyer's remorse = customer pays return shipping. Instead, agents were waiving shipping fees and sending unnecessary replacement inventory.

Actual Cost Breakdown

Incorrectly waived shipping fees$18,000
Unnecessary replacement inventory$31,000
Total Leakage (90 days)$49,000

The Fix

1

Updated Training Materials

Created clear decision trees for distinguishing damaged product vs. buyer's remorse cases.

2

Added Photo Requirement

Implemented mandatory photo upload for all “damaged product” claims before approval.

3

Weekly Pattern Reviews

Established ongoing Merro monitoring to catch policy drift before it becomes costly.

Results After 60 Days

1.9%

New refund rate (down from 3.8%)

33x

ROI on audit

“We thought our QA was solid. Merro found $43K in refunds our team approved outside policy in just 90 days. The audit paid for itself 28x over.”
SC

Sarah Chen

Head of Customer Experience

Ready to Find Your Hidden Revenue Leakage?

Free scan in 72 hours. Full recovery audit from $997. Zero risk.

Start Free Scan