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3 Hidden Insights — Stitch Fix IPO Filing

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.

Amit Sharma

Amit is the mastermind behind Narvar and its CEO, drawing from 18 years of experience shaping business operations at companies like Apple and Walmart.

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