Customer Story

Stitch Fix

How getting to know your customers leads to new product development.

Overview

Stitch Fix is an online personal styling service available for women and men, offering a smart, easy, and fun way to shop. Using expert stylists, combined with intelligent algorithms, Stitch Fix Stylists curate a ‘Fix’ of 5 personalised pieces, based on the customer’s style, fit and budget preferences. Stitch Fix has enjoyed widespread success in the USA and launched in the UK in early 2019 - it’s first international market.

Goals:

Establish brand in new market
Identify and understand new target audience
Develop market specific products

Business Challenge

Stitch Fix launched in the UK in May 2019. It was a completely new market, with new customers and no existing customer insights function. Stitch Fix’s goals for the first few months were focused on getting to know their UK customers and developing new strategies on how best to serve them. As a data-driven company, Stitch Fix had plenty of data on what their customers were doing, but were missing the why.

Solution

Stitch Fix came to Alida at the beginning of their journey into the UK. They created their new customer community, In The Fix, using the Alida platform and ran 50+ research projects, saving them an estimated £280,000 in external research agency fees.

The results of some of these research projects have been: new clothing collections; new products; successful, tailored marketing campaigns and a private Facebook community for their UK customers.

Results

The results of these projects speak for themselves: new collections based on learnings from Customer insights have improved inventory availability and driven overall product revenue. Launching new products that were tested with their customer panel has resulted in higher average Order Value, Keep Rate, and Customer Satisfaction. The Facebook community is a constant source of insight and inspiration: from learning more about customers’ styles and their needs to discovering new product ideas. Stitch Fix regularly revisits these projects and develops a closed feedback loop to ensure constant quality. The feedback from community members also allows them to streamline future projects and prioritise workload to focus their efforts on projects with the most commercial value.