PandoMonthly: Brian Lee on how he's righting the ship at Shoedazzle

TL;DR

She-Dazzle revamped its subscription model, introduced VIP membership, brought in new brand partnerships, and focused on improving engagement to turn the company around.

Transcript

so tell me about how that conversation went down between the board and him um because i get what you're saying about how the economics had changed and certainly if you model something out to three billion dollars and still losing money right that's not a great place to stay as a business but what should you have done differently instead because i w... Read More

Key Insights

• 😥 Transitioning from a static price-point to a VIP membership model allowed She-Dazzle to increase flexibility for customers and boost engagement.
• 🪛 The introduction of the "daily fix" feature improved customer engagement and drove frequent visits and purchases.
• ✋ Hiring Rachel Zoe as a spokesperson elevated the brand's perception and attracted a higher-income customer base.
• 🪈 Expanding inventory with higher-priced brands improved unit economics by increasing the percentage of orders above the standard price.
• 🖐️ Data analytics played a crucial role in identifying areas for improvement and making data-driven decisions.
• 🍝 The company acknowledged that past decisions were not necessarily mistakes but rather opportunities for learning and improvement.
• 🧡 The revamped strategy focused on customer engagement, brand perception, and offering a wider range of products to attract a diverse customer base.

Questions & Answers

Q: What led to the decision to transition from the subscription model to the VIP membership model?

The subscription model was limiting the company's ability to increase prices and lacked engagement. The VIP membership model allowed for more flexibility and increased customer engagement, resulting in higher purchases.

Q: How did the introduction of the "daily fix" feature impact customer engagement?

The "daily fix" feature, which showcased a different shoe with a special deal each day, significantly increased customer engagement. Customers showed excitement for new offerings, leading to more frequent visits and purchases.

Q: How did the hiring of Rachel Zoe contribute to improving the brand perception of She-Dazzle?

Rachel Zoe's partnership elevated the brand's perception and attracted a higher-income customer base. Before her involvement, only 22% of the client base had an income above $75,000, which increased to over 40% after her partnership.

Q: How did expanding the inventory with higher-priced brands help improve unit economics?

By offering a range of brands at higher price points, She-Dazzle saw more orders above the $39.95 price point, solving unit economic problems. This allowed for higher revenue and improved profitability.

Summary & Key Takeaways

• She-Dazzle transitioned from a static price-point of $39.95 to a VIP membership model, offering more flexibility for customers to spend their monthly fee of $9.95 on the site.

• The company introduced a "daily fix" feature, showcasing a different shoe with a special deal each day, to increase customer engagement.

• Hiring Rachel Zoe as a spokesperson significantly improved the brand's perception and attracted a higher-income customer base.

• She-Dazzle expanded its inventory with higher-priced brands, increasing the percentage of orders above $39.95 and improving unit economics.