Customer Acquisition News


Stitch Fix: A Data Story Based on Consumer ROI

October 26, 2018 Kathy Bryan

Stitch Fix is the personalized style service for women, men and kids that learns consumers’ tastes and grows as they do

Innovation packaged in a cardboard box, delivered right to your front door. When Stitch Fix first came on the scene in 2011, they were the first to promise such a tailored – literally and ­­figuratively – service for consumers interested in spicing up their wardrobes.

Stitch Fix is the personalized style service for women, men and kids that learns consumers’ tastes and grows as they do…because of the first-party data consumers provide. By offering a valuable service, Stitch Fix has had an easy time receiving data from consumers because the consumers experience a positive ROI.

Designed to save time and help consumers look great, the Stitch Fix service provides stylists who listen to feedback about the clothes and evolve selections with each box.

data Stitch Fix new consumers style profiles surveys customize subscription boxes

Stitch Fix’s Data Collection Doesn’t Scare Off Consumers

Reliant on their data, Stitch Fix asks new consumers to fill out style profiles, which include in-depth surveys on who each consumer is, what clothes they like, what their occupations are and other important information that allows the brand to customize subscription boxes to each consumer.

Aside from the expected “what size do you wear” questions, Stitch Fix asks how their clients like to wear their clothes and how they categorize their bodies. Stitch Fix even provides clients with sample outfits to gauge their styles.

The brand also encourages users to link to their social media profiles, like Twitter and Pinterest, so Stitch Fix stylists can provide exactly what consumers have in mind with visual references from personal social profiles.

Stitch Fix’s First-Party Data Collection Leads to Success

Stitch Fix Stylists Design Team First-Party Data Collection Leads to Success

With consumers’ shoe sizes, Twitter handles, earring preferences and occupations all lined up, Stitch fix gathers everything possible to better style their consumers and grow their powerful database.

In order to get the best fit for clothes and style, the more stylists know, the better. Perhaps because this service is prefaced as a stylist, consumers are especially willing to divulge their personal information. But in general, consumers seem willing to provide their data if they anticipate a positive ROI.

Stitch Fix’s database may hold some of the most thorough and, therefore, valuable first-party data on a consumer base yet. With a 27% increase in active clients year-over-year, the brand’s success with consumers is just part of its legend.

The brand’s revenue increased 23% from last year’s numbers, reaching $318.3 million at the end of the fourth fiscal-quarter in 2018.

Plus, the brand plans to expand outside of the U.S., making moves toward the U.K. by the end of 2019. This will be the most recent expansion after the brand’s kids’ line. CEO Katrina Lake, said, “We believe our ability to create a uniquely personalized shopping experience is something that will resonate with consumers and brands outside of the U.S.”

With so much knowledge of their consumer base, Stitch Fix seems to have had little to no trouble satisfying their paying customers and expanding their brand. Stitch Fix proves that if brands offer consumers something valuable, consumers are likely to pass over their data.

Reimagining your data generation strategies?

Contact Digital Media Solutions today.

About the Author

Kathy Bryan

Kathy Bryan is the Chief Marketing Officer at Digital Media Solutions (DMS). In this role, Kathy is responsible for all aspects of marketing and communications for DMS, the leading global martech company leveraging innovative, performance-driven brand and marketplace solutions to connect consumers and advertisers.

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