JustFab has made a business out of reading consumers’ moods and serving styles that hopefully…read more
Jul 1, 2020
Forbes: ShoeDazzle Recognized for Success with Personalization in Membership Program
by Sallie Burnett | Jul 1st, 2020
Subscription e-commerce is hot. In 2016, the largest subscription businesses generated over $2.6 billion in sales — up from $57 million in 2011. And as a result of the coronavirus pandemic, 22.5% of companies have seen their subscription growth rate increase.
Despite these numbers, subscriptions do not sell themselves, and retention is key for subscription businesses. It is typically cheaper to retain existing customers than continually recruit new ones. A 2018 survey conducted by McKinsey & Company found that 40% of e-commerce subscribers had canceled, which I think shows that ongoing quality and incentives to stay are crucial. A loyalty program can help drive this retention.
Personalize Your Program
Loyalty programs make it easier to gather data on customers, and personalization can deepen customer relationships by making them feel as though they are special. For example, with ShoeDazzle, customers can generate a “Style Profile” by taking a short quiz and visiting a customized online “showroom” for recommendations. The athletic clothing line Fabletics asks a few questions about preferred activities and clothing and recommends products. Stitch Fix subscribers get five items of clothing each month and return what they don’t like, allowing their stylists to build an ever more detailed dossier of their preferences and send increasingly valuable subscription boxes each month.