280,000 net new purchasers acquired in 2017[ 1]
Blended Customer Acquisition Cost of $280
2017 Cohort Payback:~ three years[ 2]
938,000 new clients+ re-activations not actively involved 2016
Blended Customer Acqusition Cost: $75
Median 2017 Cohort Spend: $500[ 3]
2017 Cohort Payback:
The cost of the product The cost of the experts( in this case stylists) The costs of logistics
The first is simply looking at other similar companies. Shipping, recalls information, and re-stocking strive costs for most industry corporations is between $15 -2 0 on a blended basis. Stitch Fix is a matured, scaled company and presumably deserves to exist on the lower end of that collection.
Countless companionships will offer a reject for obstructing one’s part shipment. It’s actually instead intuitive as a full restrain actually offsets the income and re-stocking expenses ($ 8-12) in addition to boosting average dictate ethics. A ordinary Fix has a $ 275 retail value( average of $55/ item ), so their 25% deduction is contra receipt by ~$ 55 ($ 55 x 4 entries x 25%)- likely ~$ 15 worth of contribution margin. Since they give added margin on the 5th and final entry, this is a solid lot for the Busines if it relieves( or better) their revert+ re-stocking expenses. It is also implies the comeback and re-stocking expenses are somewhere in this wander.
LTV: CAC Ratio- This should be fairly obvious, and although Stitch Fix tries to give us insight into their Lifetime Value analysis, it’s largely futile without knowing true-blue CAC , nor contribution boundary. Remain Rate- This is the metric to move in the category, and has historically been difficult to move the needle on. It is calculated as [# of Items Kept by Customer/# of Items Sent in Fix ,] Stitch Fix does show us indication they’ve given an opportunity to elevator this metric 22% in 2 years- but we don’t know from what base.
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