Learn how FabFitFun replaced their underperforming chatbot with Applied Labs' AI agents to boost customer experiences and cut support costs.

✔ 95% CSAT — matching or even higher than human agents

✔ 24% increase in chat automation in < 3 months

✔ 31% increase in overall automation in < 3 months

“With Applied Labs, our bot now outperforms human agents on CSAT, and automation has nearly doubled — all while cutting our platform costs in half.”

– Caitlin Logan, VP of Customer Service at FabFitFun

About

FabFitFun is a leading lifestyle membership with millions of engaged subscribers across the U.S. and beyond. Their flagship seasonal box delivers full-size beauty, fashion, wellness, and home products, complemented by an active online community and members-only shopping events.

Challenge

FabFitFun Needed a Reliable, Next-gen AI Partner as Customer Support Plateaued

With millions of members engaging across channels like chat, email, SMS, and community forums, FabFitFun knew they needed consistent, reliable customer support. To streamline routine inquiries, the team introduced a chatbot — and at first, the rollout seemed alright. But over time, Caitlin Logan, VP of Customer Service, noticed concerning patterns.

Even on good days, satisfaction scores peaked around 70%, which was well below human agents' performance. Even basic questions about order status left customers stuck in support loops, unable to get clear answers. Caitlin also recognized that bot responses lacked empathy and detail — it couldn't acknowledge customer situations or ask clarifying questions.

As the bots failed to complete routine tasks, inquiries overloaded the support queue. Time-strapped reps jumped in with limited context, forcing members to repeat themselves and fueling frustration.

To keep support issues at bay, Caitlin turned to bot QC checks. But as the team discovered more issues — including instances where the bot shared a return policy that didn’t exist — spot reviews soon escalated to hundreds of transcripts per day. "We had to read as many conversations as possible," Caitlin explains. "We didn't know what the bot was promising, or if it was lying to our customers."

This constant auditing pulled focus from high-value work, like complex problem resolution and proactive member outreach. It also created risk around inconsistent brand communication. Meanwhile, automation rates plateaued, creating additional pressure on the support team.

Plus, FabFitFun's homegrown platform lacked standard APIs, limiting personalization. The team created a workaround, using metadata variables to supply information like order status and renewal dates. But the bot still couldn't reliably use this information to generate detailed responses. And with limited reporting capabilities, the team couldn't see where bot performance stalled or identify the best intents to optimize.

After four years of workarounds, FabFitFun knew it was time for an elevated customer care solution. As their renewal period approached, Caitlin looked for a partner who could lift CSAT, reduce manual QA overhead, and unlock automation scale. 

That search led the team to Applied Labs.

“Our automation rates were hitting a ceiling, and sometimes we’d catch the bot saying something inaccurate — like promising a return policy that didn’t exist.”

Solution

Applied Labs’ AI Agents Turns Metadata Into Accurate, Empathetic Answers

After a structured and collaborative onboarding process, FabFitFun finally got what they’d been missing: reliable AI conversations that instantly resolved highly complex customer issues at scale.

Now, as customers ask questions, the agent acknowledges their situation, asks clarifying questions, and provides detailed, empathetic responses and AI actions on behalf of the customer. 

Even without standard APIs, Applied Labs' AI agents pull details from the metadata FabFitFun already surfaces, like order information, tracking details, and renewal dates to personalize each conversation. "Our new AI agent uses that information and feeds it back to customers really easily," Caitlin says. Now, customers don’t get stuck in endless loops — instead, common requests like order status inquiries are answered accurately and in real time.

Built-in quality controls also save time and create dependable customer experiences. With Applied Labs’ reporting, Caitlin's team easily reviews full transcripts, runs quality checks, and identifies which intents the agent handles well. To prevent over-promising, Applied Labs adds safeguards with post-conversation AI flagging that ensure proper follow-through anytime AI agents make commitments. 

For the most complex cases that require human judgment, Applied Labs’ AI agent collects necessary context before creating a task, ensuring reps have every detail at their fingertips. This process eliminates the frustration of customers rehashing their issue with a live agent.

With routine inquiries resolved reliably and automatically, the team is free to focus on high-value tasks, including proactive support and meaningful member engagement. Because fewer tickets need humans, FabFitFun also saves significantly on platform fees and potential headcount. "Every percent increase in automation prevents unnecessary future hires and offers significant savings," Caitlin explains.

Applied Labs reinforces these gains with more than compelling tech. By showing up as a strategic partner and providing ongoing support, they give Caitlin total confidence in their shared mission: to deliver a reliable, elevated customer experience.

“Applied Labs’ agent actually feels like it’s a human that understands our customers. It acknowledges their situation, responds with empathy, and handles the routine questions that used to slow down my team.”

Results

FabFitFun Boosts Automation by 30%+ in <3 months

With Applied Labs, Caitlin saw immediate cost savings and performance improvements that addressed every roadblock her team encountered with their previous chatbot vendor.

✔ 95% CSAT — matching or even higher than human agents

✔ 24% increase in chat automation in < 3 months

✔ 31% increase in overall automation in < 3 months

Ongoing improvements and weekly iterations also position FabFitFun to expand beyond traditional support. As internal systems evolve, Caitlin envisions automating more workflows to save more time and deliver on their commitment to building out the best customer experiences.

“Applied Labs has been a step ahead at all times, iterating and solving things on the fly when we need it. Our customers love the solution.”