Dive Brief:
- Rent the Runway boosted its net promoter score 20 points from a low in Q2 2023 to a high in Q4, Co-founder and CEO Jennifer Hyman said on a Q4 2023 earnings call last week.
- The company will build on customer experience improvements launched last year, such as one-on-one communication between customers and stylists and the launch of AI-powered search, to drive growth and improve customer retention in 2024, Hyman said.
- In 2024, Rent the Runway plans to streamline its app and site user experience and provide reviews and educational content to help customers understand how to best wear the brand’s fashions.
Dive Insight:
Rent the Runway’s improvements to its customer experience are a bright spot following a challenging year that culminated in the retailer cutting 10% of its corporate staff in a January restructuring plan.
The company will add more on-site content aimed at inspiration and product discovery in an effort to return to growth. The goal is to help Rent the Runway’s customers quickly find the right 10 items each month for their subscription, according to Hyman.
A key initiative for Q4 2023 was the introduction of pages on Rent the Runway’s website dedicated to common occasions, such as weddings or travel. The product pages include styling advice and clothing suggestions for specific activities associated with an event, such as a trip to a museum while on vacation or attending a brunch after a wedding.
Rent the Runway plans to further improve this service to make product discovery easier in 2024, Hyman said.
“People don't come to our site to buy a subscription to fashion, they come to Rent the Runway because they need solutions,” Hyman said during the call. “They're trying to solve functional problems, like how do I get dressed for work, special occasions, vacation, every day.”
The company will also scale up its Concierge Program, which connects customers with stylists who can answer their fashion questions, Hyman said. She noted that this program excels at building loyalty with newer customers who are unsure of what they need.
