![]() Secondly, while RTR has recently opened brick-and-mortar stores, its main presence is online and the majority of its thousands of dresses, outfits, and accessories come from one warehouse in New Jersey. Also, RTR uses data analytics to provide customers with personalized recommendations for additional rentals and showcases dozens of reviews from other customers who have rented each dress the customer looks at. The firm uses data analytics to provide data back to the designers of the garments it has available to rent – typically giving these designers information on the most popular items and their corresponding colors and styles. Internally, RTR supports its business model through robust data analytics, physical distribution strategy, and dry cleaning logistics. RTR’s cohesive and efficient customer service model ensures they provide a high-quality customer experience that is no different than buying in store, while giving customers access to a broader and higher quality range of goods than they would normally be able to experience. This rental-return experience is almost easier than needing to return a garment in store. When a member rents a dress, they also receive a pre-printed return address and envelope, which they can simply drop with their worn dress inside at a post box. RTR also structured the rental return process to be seamless. This way, the member, who may not know exactly how they will fit in their dress, is essentially able to “try on” the dress and determine which is the best fit. First, all members may select a free-back up size for each of their rented items. In its customer facing structure, RTR has created a rental process for members that is no more difficult than buying a dress in store. RTR aligned its operating model to its business model and strategy both externally to customers and internally through its structure and processes. RTR, founded by two HBS grads, is structured to drive high levels of alignment between its business model and operating model. ![]() ![]() Part of this strategy is to ensure that the customer can have the in-store “Cinderella” experience of purchasing a nice dress, without needing to foot in a store, and while only spending a fraction of the cost. RTR’s business model is to provide opportunities for members to rent an expensive dress that is likely above their price point – therefore that they typically would not purchase in store – but that they are willing to pay a fraction of the price to wear for a night. The site also offers rentals of accessories and more casual outfits. ![]() The dresses are from popular and high-end designers and at rental prices that are typically only about 10% of the list price of the dress . Rent The Runway (RTR) is a website which allows members to rent designer dresses at a variety of price points for either 4 or 8-day rentals. ![]()
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