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In today’s newsletter,
Your CX metrics are lying to you
What your above-the-fold must never do
AI return fraud is coming for your refund policy
Why hiring more people made things worse
The email marketing playbook
This issue takes 2 minutes to read.
Check out our DTC tool stack here
Let’s dive into it👇
88% resolved. 22% stayed loyal. What went wrong?
That's the AI paradox hiding in your CX stack. Tickets close. Customers leave. And most teams don't see it coming because they're measuring the wrong things.
Efficiency metrics look great on paper. Handle time down. Containment rate up. But customer loyalty? That's a different story — and it's one your current dashboards probably aren't telling you.
Gladly's 2026 Customer Expectations Report surveyed thousands of real consumers to find out exactly where AI-powered service breaks trust, and what separates the platforms that drive retention from the ones that quietly erode it.
If you're architecting the CX stack, this is the data you need to build it right. Not just fast. Not just cheap. Built to last.
CRO
What your above-the-fold must never do
Intrusive offer overlays.
A three-level header.
Almost nothing above the fold except one product image.
Banana Republic does all of it. They can get away with it; a smaller brand can't.
The difference is that Banana Republic spends hundreds of millions a year on brand advertising.
By the time someone lands on their site, they already know what Banana Republic is, roughly what things cost, and whether it's for them.
The homepage just needs to not get in the way.
Your customer has probably never heard of you. They landed from an ad, a Google result, or a friend's recommendation.
They have no prior trust, no mental image of your product quality, and no reason to keep scrolling unless you give them one fast.
That's what above the fold is actually for.
1. Give them detail immediately.
First-time visitors need to know what you sell, who it's for, and why it's worth their money before they scroll.
2. Keep the header lean.
One row. Logo, navigation, cart. That's it. Every extra row you add pushes your product lower and signals clutter before the visitor has seen a single thing worth buying.
3. Show the product from multiple angles.
One image isn't enough when nobody knows your brand yet. Use multiple angles, lifestyle images, and close-ups that answer the questions a first-time buyer has about quality and fit.
Action Summary:
Open your homepage on mobile and screenshot just the above-the-fold view.
Ask: can a stranger who has never heard of this brand tell what's being sold, and find one reason to trust it, without scrolling?
If no, rewrite your headline to name the product and the customer it's for, and add one specific social proof element
Credit: Sheldon Adams
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AI Fraud
AI return fraud is coming for your refund policy
A customer filed a damage claim with Boll & Branch. Sent photos as proof.
The CEO looked at them and immediately knew something was wrong as the cotton didn't fray the way cotton actually frays.
One image had an AI watermark on it.
They caught it. But they also found several others in recent tickets that had already slipped through.
This is new. Fraud experts told Modern Retail they've gone from seeing AI-generated return images occasionally to seeing them daily. One platform that works with thousands of brands called it "exploded overnight."
Their playbook is simple: generate a fake damage photo, submit a claim, collect the refund. AI tools have made this fast enough that it's worth trying at scale.
For a $10M brand with a fast refund policy, this is a real exposure. You're processing claims quickly because speed builds trust with legitimate customers. Fraudsters know that.
E-commerce returns are projected to cost $379 billion in 2026 and roughly 14% of returns are considered fraudulent.
Three things you can do now:
1. Flag claims that escalate.
Boll & Branch caught their fraudster when the customer suddenly claimed more damage after being asked for verification. One complaint that turns into two is worth a closer look.
2. Track return history per customer.
First-time buyer, no proof of purchase, second return in 60 days — these patterns are worth building into your process before a refund fires automatically.
3. Ask for verification on high-value claims. A FaceTime call or a video stopped multiple attempts in the cases reported. Most fraudsters won't show up.
Action Summary:
Review your last 30 damage claims and check for images that look inconsistent with how your product actually breaks or wears.
Add a step for high-value refunds requiring either a video or the product back before issuing a replacement.
Start logging repeat claimants so patterns surface before the next attempt gets through.
Credit: Allison Smith
Operations
Why hiring more people made things worse
If this is familiar, the instinct is usually to hire better people. It's the wrong diagnosis.
The problem isn't your team. It's that you built a company that only works if everyone on it is exceptional. A-players don't fix broken systems — they just suffer through them more quietly, then leave.
There's a line worth sitting with: "I can't attract A-players" is usually code for "I built a company that requires them."
A well-built company makes average people look good. Processes are clear, decisions are documented, people know exactly what they own. Nobody needs permission for things they should already know. New hires get up to speed fast because the system carries them, not the other way around.
The test is simple: if you hired a solid but unremarkable person into a role tomorrow, would they succeed? If the honest answer is no, you don't have a hiring problem. You have a systems problem.
Fix the system first. Then hire into it.
Action Summary:
Write down the last three times someone came to you for a decision they should have owned. Those are your first three system gaps.
For each one, document the rule: what information they needed, what the right call was, and how they should handle it next time without you.
Only once those are written down, open a new role.
P.S. You can check the free hiring scorecard here.
Credit: Ryan Deiss
Email Still Wins. Here's How to Use It Better.
59% of Americans say most marketing emails offer no real value. That's not a threat, it's an opening. Get the AI-powered playbook for building email campaigns that actually convert.
Inside you'll discover:
How top brands achieve 3,600% ROI from email marketing
AI personalization techniques that drive 82% higher conversion rates
Tactics that have delivered 30% better open rates and 50% higher clickthroughs
How to build sequences for every stage of the customer journey, from welcome to re-engagement
Download your free AI-powered email marketing playbook today.
Have questions or feedback? You can write to kaushal@dtcdailynews.com
P.S. Check out the free hiring scorecard here!