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.
2.1% → 3.8%
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
The Fix
Updated Training Materials
Created clear decision trees for distinguishing damaged product vs. buyer's remorse cases.
Added Photo Requirement
Implemented mandatory photo upload for all “damaged product” claims before approval.
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.”
Sarah Chen
Head of Customer Experience
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