Here are some insights on the importance of data and personalization when scaling a subscription model.
The success of companies such as Stitch Fix, a company that built their business around data and personalization, reveals an important subscription pillar — >> subscription businesses typically gather data on customers at a much faster pace than companies with a traditional business model.
The continuity component of subscriptions means consistent touch-points with the consumer. Data from those touch-points compounds and can be used to optimize the customer experience and/or subsequent offerings.
Stitch Fix has nailed this data optimization game.
Dollar Shave Club adhered to customer needs and upped the shopping experience by offering product trial kits, a fun-sized combo of grooming goods.
IPSY and Birchbox leverage data from their sample boxes to optimize subsequent shipments so they’re more in tune with consumer preferences.
Crossing over into content and all things streaming, there’s no question the success of companies like Netflix, Spotify, and Peloton Interactive is largely driven by data and personalization.
How are you thinking about data and personalization?