Stitch Fix

Imagine starting a billion-dollar app that delivers clothes to you, because you don’t have the time to shop!

Stitch Fix operates on a subscription model where customers receive personalized clothing items on a regular basis. Customers fill out a style profile, and the company’s algorithms and stylists select clothing items based on their preferences, budget, and lifestyle.

How it started

Katrina and her classmates were frustrated with the lack of time to shop for clothes This led her to think about a solution that would make shopping more convenient and personalized.
She started small by reaching out to friends and family to offer personalized styling services. She would send them a selection of clothes based on their preferences, and they could keep what they liked and return the rest all while keeping track of their preferences with Survey Monkey
This was an instant hit with her clients, and the business quickly grew. Katrina was able to secure funding for Stitch Fix by participating in a startup accelerator program called Y Combinator. With this funding, Katrina was able to scale up her business and hire a team of stylists and engineers to develop the technology that would enable her to offer personalized styling services to a larger audience.

How it’s going

As of March 2023, Stitch Fix has a market capitalization of around $4.4 billion USD.
Stitch Fix has over 8,000 employees and serves customers in the United States and the United Kingdom.
While she stepped down from her role as CEO in 2020. Katrina Lake is still involved with Stitch Fix as the Executive Chairperson of the Board of Directors.
In addition to her work with Stitch Fix, Katrina is also involved with several other organizations and initiatives. She is a member of the Board of Directors for the food delivery company Grubhub, and she serves as a mentor to other women entrepreneurs through the All Raise program.

The Marketing Strategy

While there are likely many factors that have contributed to its success, here are three online marketing strategies that have helped the company grow:

Personalization: One of the key features of Stitch Fix is its use of personalization to deliver customized styling recommendations to each of its customers. To do this, the company uses a combination of data science and human stylists who select clothing items based on a customer’s preferences, size, budget, and other factors. By offering personalized recommendations, Stitch Fix is able to create a unique and engaging experience for each customer, which can lead to increased loyalty and word-of-mouth referrals.

Social media: Stitch Fix has a strong presence on social media platforms, including Instagram, Facebook, and Twitter. The company regularly shares photos of clothing items, styling tips, and customer reviews on these platforms, which can help to build brand awareness and engage with customers. Additionally, Stitch Fix has experimented with social media advertising to reach new audiences and drive traffic to its website.

Referral program: Stitch Fix has a referral program that rewards customers for referring friends and family members to the service. When a new customer signs up using a referral link, both the new customer and the referrer receive a credit towards their next purchase. This program can be a powerful way to incentivize customers to spread the word about Stitch Fix and can help to drive new customer acquisition.