Business
Rent the Runway Permanently Adds Extra Item to Every Subscription Shipment, Meaningfully Investing in Customer Experience
Company Ushers in Its “Era of Extra” Focused on Delivering More Value to the Customer NEW YORK, March 06, 2023 (GLOBE NEWSWIRE) -- Rent the Runway, Inc.
About this update from Rent The Runway, Inc.
[{"type":"text","content":"Company Ushers in Its “Era of Extra” Focused on Delivering More Value to the Customer\nNEW YORK, March 06, 2023 (GLOBE NEWSWIRE) -- Rent the Runway, Inc. (“Rent the Runway” or “RTR”) (Nasdaq: RENT), the world’s first and largest shared designer closet, today announced that it is evolving its customer experience by permanently adding an extra item to every shipment of its iconic rental subscription program, the first move in what the company is calling its “Era of Extra” focused on continued investment in the customer. This means, for example, that subscribers who are currently in Rent the Runway’s most popular 8-item, 2-swap plan will now receive 10 items per month, or 25 percent more value for the same price. This latest effort is one of many RTR plans to introduce in fiscal 2023 and beyond to reinvest in and reimagine the customer experience by delivering even greater value to subscribers. As a service that is used multiple times a week by many customers, Rent the Runway’s focus is to make the customer journey as efficient and delightful as possible. “We believe that there is strategic value in giving her more items in her subscription, because we have seen from years of testing that providing an additional item drives higher loyalty and engagement,” said Jennifer Hyman, Co-Founder and CEO of Rent the Runway. “Especially at a time when consumers are doing the math on what they spend and many companies are taking away rather than giving back, we are confident that this is the right move for our customer and for our business. The more items she receives from RTR, the more she wears. When she rents more frequently, we believe that she is more likely to widen her use cases, share RTR more with her friends and be a subscriber longer.” While this is the first time an additional item will be permanently part of its subscription offering, Rent the Runway has seen benefits to retention, rejoin and referral rates during temporary extra-item promotions in historical testing. The company has also seen engagement benefits, like an increase in the number of items a subscriber wears and an increase in the number of items she buys from RTR. Rent the Runway’s extensive work over the past three years to transform the financial profile of the business and improve the capital efficiency of its inventory acquisition programs has enabled this benef...