Menlo Club Seasonal Subscription Launch
Going to market with a new quarterly subscription to combat churn, increase LTV, and capture a new target audience for the business
Goals
Our monthly subscription had issues with the quality of clothing being sent, as well as customers complaining about receiving clothes too frequently. With this feedback, I worked with the team to launch a quarterly box that upgraded our assortment to premium-quality clothing and was delivered on a seasonal basis. We set out the following goals to track success by:
📈 Increase LTV
Our aim was to increase the LTV of customers by offering a higher-priced base subscription on top of an ‘add to box’ feature that featured additional items to include in their shipment for a discount.
🔁 Reduce Churn
Another objective was to reduce the overall churn of people cancelling the subscription by solving some of the core problems of our monthly box. We also leveraged this new subscription to win back old customers who had already churned.
💰 Drop CAC
Finally, given the healthier margin of this business compared to our monthly model, we had more room to spend on customer acquisition. We also had 'better' features to offer the customer, which in theory should help the conversion rate.
Strategy
Acting as the General Manager, I had to collaborate with Logistics, Merchandising, Customer Service, Product, Engineering, and my own Marketing team to identify the pain points customers had faced with each team. With this feedback, I looked to design solutions in our new subscription model that would solve these problems and present an upgraded experience for our community.
Marketing
I built a go-to-market plan that spanned paid & organic channels to drive awareness, traffic, and ultimately, conversion. We also launched support on email, SMS, and seeded influencers to hype up the launch.
UI/UX (Product)
We built an entirely new interface for customers to experience Menlo Club, as well as new dedicated shopping & add to box portals so they could customize their shipments with a few clicks of a button.
Engineering
Partnering with a dev agency, our engineers worked with them to build the new website on BigCommerce and ensure that the transition from our old platform went seamless.
Logistics
I negotiated with UPS to streamline our fulfillment times given that slow delivery was a pain point of our monthly offering. As well, worked with packaging to develop a premium box that all clothing would come in from now on.
Merchandising
As our aim was to also elevate the quality of our clothing, I partnered with our Merchandising department to introduce new apparel categories, as well as upgrade the materials of anything that went into production for the premium box.
Customer Service
On top of building a lot of self-serve features on the new platform so that customers could manage their subscription the way they wanted, we also assigned dedicated stylists to help with any order issues and customize future shipments.
Results
52%
Decrease in churn
$65
Increase in AOV per customer
10,000+
Members within first quarter
We launched a quarterly subscription service featuring upgraded apparel, custom packaging, and a fully rebuilt website on BigCommerce. Fulfillment was improved through new shipping methods, and a digital magazine was created to preview upcoming collections. Customers also gained access to personal stylists and an improved self-service platform.
