The internet is a broad playing field. There are millions of different businesses on the web and it can be hard to differentiate your business compared to hundreds of others that may be very similar to it. A subset of the many different internet business models is the subscription model. This is where consumers can sign up to receive a subscription from the company at a flat rate.
A really interesting example of a subscription model is the company Stitch Fix. They are an internet subscription model that is based on clothing. When a customer signs up for stitch fix, they are prompted to fill out a survey regarding their style profile and are charged an upfront fee of $20. From this, a personal stylist will pick out 5 pieces of clothing, jewelry and accessories that fit their personal style profile, needs and budget and they send it to the customer. From this, the customer can choose what to keep and what to send back. They then get online and check out what they would like to keep. The $20 goes towards the initial covering of the price of clothing and the customer pays the difference. They fill out a response survey on the items they send back, and Stitch Fix uses this to get a better idea of what to send the customer the next time.
The Stitch Fix model is extremely unique and has done a great job of differentiating themselves among the many competitors of the web. People love their extremely personal focus and their effort on targeting each individual’s exact needs. This laser point targeting method sets them apart from other online clothing and styling companies. They have done an exceptional job with customer service and making each experience truly unique. Stitch Fix is a great example of a successful internet subscription model.
To visit their website click here.