Hot on the news of the Stitch Fix IPO filing, here are three key insights beyond the S-1:
1) Returns are the new normal
Not only did Stitch Fix embrace ‘returns’ but they effectively accelerated the move to have shoppers make their bedrooms the new fitting rooms. 40% of shoppers ‘bracket’ their purchases – this means they buy a size up or down, or a color up or down. Stitch Fix really has made returns a competitive advantage.
2) The new “new” personalization
Stitch Fix has a reputation for a robust data science team. But what sets them apart is an innovative method of combining behavioral preference data with actual survey questions/quizzes with human stylists that apply the finishing touch. This created a winning formula that ensured a more accurate styling personalization.
3) Joys of unboxing
They successfully tapped into the psychology of product discovery and unboxing but in a very physical way. By harnessing the moment of excitement and surprise, they turned what’s been a very mundane experience into a fun ritual.
What this means for retail
Brand and retailers who go the distance to really understand post-purchase consumer behavior are set up to succeed by taking advantage of the new moments of customer engagement — leading to long-term sustainable loyalty.
For more on Stitch Fix, Jason Del Rey has a great piece that provides greater context and background.
For further reference:
This article was originally published on LinkedIn.