How Visp decreased defective unit returns by 40% using Factored Quality
Learn how Visp partners with Factored Quality to ensure golden product quality, increase customer satisfaction, and enable exceptionally low return rates.
“Leveraging Factored Quality is such a small cost in comparison to the potential downstream risks that it really is a no-brainer. De-risking your supply chain as much as possible is just the sensible thing to do.”
Learn how Canopy, the wellness brand behind your new favorite humidifier, leverages Factored Quality to centralize Quality Control ops and ultimately boost user retention.
Beauty, health, and wellness start with the air you breathe. That’s why Canopy uses unmatched clean technology to build humidifiers and diffusers for every home and user. Since 2020, the brand has sold 100,000+ humidifiers and 300,000+ filters while amassing 50,000+ subscribers. Mike De Santis, one of Canopy’s founding team members, attributes this growth trajectory to their dedication to high-quality products above all.
Venture capital for DTC startups is a rare commodity these days. As a result, every brand is doubling down on retention. And, in Mike’s experience, too many overlook the most basic lever for success: ensuring the undeniable quality of your products.
In the early days, before Factored Quality, two common issues harmed Canopy’s retention:
Then the Canopy team realized — these negative touchpoints were easily addressable through Quality Control.
He notes, “If you ship faulty products and do not realize it till customers start opening boxes and reporting defects — that is a huge problem. If it’s a large enough defect rate, you could end up in a very bad situation as a brand. And that genuinely can’t be fixed by throwing money at it.”
Before discovering FQ, Canopy worked with independent inspectors in China — with all communications happening over WeChat and WhatsApp. They struggled to refine checklists and had to manually download and store reports and static photos of their factory floor.
Today, Factored Quality’s intelligent, tech-enabled solution provides what was direly missing: a single source of truth for Canopy’s global QC. We execute this in three ways.
Mike mentions, “Previously, all of the QC work we’d done was just a snapshot. Nothing was dynamic or integrated. That piece of the puzzle was majorly unlocked by Factored Quality. We now have a single source of truth.”
During Q4 of 2022, Canopy worked with FQ to test 200 units of a shipment. We found 13 cosmetic defects on humidifier tanks — nearly 7% of the sample. “If it weren’t for Factored Quality, we would not have caught that,” emphasizes Mike.
Ultimately, we prevented a hit to Canopy’s NPS and any wasted dollars on the return process. Even if those customers had simply requested replacement tanks, that shipping would still eat into the margin dollars Canopy makes off each user.
Here are more trackable savings and metric wins driven by FQ for the Canopy team:
“Setting high-quality expectations is a key piece of customer success. We are not going to be happy with a 7% defect rate — ever. With Factored Quality, we don’t have to be. If defects start to rear their ugly head, there is always someone to talk to on the FQ side.”
In the end, Mike describes Canopy as a “small, scrappy team” of less than 10 people. That’s why they have high standards for external partners and only seek out trusted, embedded long-term relationships: “people who understand our brand and our product in detail.”
Canopy found this in Factored Quality: from standardizing meticulous checklists to fielding late-night phone calls about overnight production. Looking forward, he and his team are excited to keep this partnership going for the long haul.