Value proposition of Stitch Fix: customization, convenience, pricing, and brand/status
Customization
The company facilitates customization. Clients utilize its service by filling out an online survey specifying their style, size, and price preferences. A personal stylist then analyzes this data, as well as details from other references. These references include clients’ social media profiles (e.g., Instagram) and feedback on previous fixes if it is a retained client. These inputs are there to make educated guesses about the type of apparel clients would prefer – for example, stylists can pretend that a customer has a 40% chance of keeping a particular type of cotton.
The stylist then chooses five pieces of clothing (“fixes”) that presents the best fit. Clients then schedule a day to get the products. If they choose to go for a subscription, they can also choose the amount of time between shipments.
Price
There is a price value proposition. The stylist service fee is only $20. The average price point for its apparel is $55 per product; that said, there is a wide range of prices. If clients choose to buy all five selected pieces, they get a 25% discount on their entire purchase. If customers do not want a product, they can use an included prepaid envelope to return it for no charge.
The company has launched a strong brand due to its accomplishment. It has shipped millions of packages to clients since it has been begun. It offers a wide range of products, including sweaters, pants, shorts, skirts, dresses, shirts, jewellery, shoes, scarves, outerwear, and bags. These products are sourced from over 250 women’s wear brands and over 30 men’s wear brands, both established and up-and-coming.
Specific women’s apparel names include Gorjana, Kut From The Kloth, Joie, and Citizens for Humanity. Specific men’s apparel names are Original Penguin, Ben Sherman, Scotch & Soda, Mavi, 7 For All Mankind, and Converse. Lastly, Stitch Fix has achieved a number of honours. One of these is by Tech in Motion with a Timmy Award for being one of the large firms in San Francisco with the “Best Technology Work Culture“(2015).
Stitch Fix runs the Influencer program, an affiliate program through which it invites third parties to endorse the service through their stages (website, mobile apps, etc.). These parties receive a cash payout for customers that use a link on the platform to visit the company’s website and place an order. Program benefits include the following:
Invites to private events hosted just for influencers
Chances for giveaways, cross-promotions, and other partnerships
Admittance to insider news through the company‘s influencer newsletter and Facebook group
Best practice guides and content toolkits to guide with generating more referrals
Occasional gifts and other surprises as tokens of approval
