How It Works
What are the firm's 2 major business lines?
Rental and Subscription
What is a churn rate?
The rate at which consumers leave a product or service
What is paid media?
Efforts where an organization pays to leverage a channel or promote a message (advertisements/sponsorships)
Name 3 tools that the firm use to collect data?
- Mobile use
- Interaction on its website
- social media
Is Rent the Runway's operations based on human operations, technology, or both?
Both
How does the CEO describe the firm?
A fashion company with a technology soul
What do they mean by 'product-market fit?
What does the term 'social proof' stand for?
The positive influence that is created when someone finds out that others are doing something
What approach does Rent the Runway use to price its products?
They leverage analytics for demand pricing
What is a new business opportunity for Rent the Runway?
The subscription business
How does the customer order a product from Rent the Runway?
Customers select a dress and delivery date for a four-day loan at 10 percent of the dress's regular retail price.
What is the meaning of 'customer lifetime value'?
The current value of future profits that will accrue from acquired customers
Mobile allows the firm to collect additional, valuable data on each user so that it can better understand their preferences and interests
What is demand pricing?
Pricing that shifts over time, usually based on conditions that change demand.
Who are the CEO's of Rent the Runway
Jenn Hyman and Jenny Fleiss
What is the pricing of their unlimited and update models?
Unlimited - $159
Update model-$89
What does the term "Pivot" stand for?
Altering a product offering, business model, or target market in hopes that the change will lead to a viable business
In what ways do retail storefronts help the firm?
- When customers need additional education to help them get over inertia and actually try the new firm's offerings
- Act as mini-warehouses and additional points to gather experience-enhancing customer data
Why is agile software development so important for
Rent the Runway?
It helps the firm with continuous deployment and introduces software updates as needed.
Aside from Rent the Runway, what are some other multibillion-dollar businesses run by women?
Canva - Melanie Perkins
Glossier - Emily Weiss
Skims - Kim Kardashian
They are a massive e-commerce company where 100 percent of the inventory is returned, inspected, cleaned, pressed, then packaged up for good as new send-out to the next precisely scheduled customer order.
What is a minimum viable product (MVP)?
A bare-bones offering that allows entrepreneurs and product developers to collect customer feedback and to validate concepts and assumptions that underlie a business idea
How has Rent the Runway leveraged the concept of social proof?
They leveraged the concept of social proof to spread the word about the firm, encourage others to sign up, and help customers gain additional information so that they overcome inertia and rent a dress
Why does the technologist at Rent the Runway develop their products with members of other business teams?
They do this to develop, test, and refine new concepts. This helps the firm produce more products more quickly and take into account the needs of the business and its customers.
What does "Unicorn status" mean?
When a tech industry's name for extraordinary startups is valued at $1 billion or more.