The value prop of opt-out vs opt-in

The world has been transitioning from opt-in to opt-out for awhile. Have you noticed?

What does that mean?

In the old days, if you wanted to buy clothes you had to opt-in to the whole process. You opted-in to shopping, finding and then buying. You did a lot of the work.

Stitch Fix changed clothes buying to an opt-out value proposition. Many people attracted to Stitch Fix for low cost styling, but stay for the convenience of the opt-out process.

Of course, styling and fit are key value components. If Stitch Fix missed on those marks, few would stay.

But, as a customer, I’ve found more value than I expected because I can now avoid a good deal of the opt-in clothes shopping process while keeping my wardrobe up-to-date.

Of course, Stitch Fix did not invent this approach. After all, fruit-of-the-month clubs have been around for awhile.

But, they did tweak it with some technology so customers get more of what they want by  doing less. I imagine the business does less, too. It seems having one or two locations that you ship orders from should be more cost effective than stocking and running a network of retail stores.

And, by more of what I want, I mean that on several dimensions. I get styles I like, clothes that fit and keep my wardrobe up-to-date. I also get to try new brands and to try slightly experimental styles (a risk profile you can set) that I might not pick out myself.

By doing less, I mean I don’t have to drive to multiple retail stores, rifle through their racks, try on things, compare, winnow down, stand in line, buy and then drive home.

Managers who haven’t thought how they can deliver their products or services with an opt-out model in valuable ways for their customers should be.

Good Advice from Seth Godin

From his post, It’s not about you.

Right in the front row, not four feet from Christian McBride, was every performer’s bête noire. I don’t know why she came to the Blue Note, maybe it was to make her date happy. But she was yawning, checking her watch, looking around the room, fiddling with this and that, doing everything except being engaged in the music.

McBride seemed to be too professional and too experienced to get brought down by her disrespect and disengagement. Here’s what he knew: It wasn’t about him, it wasn’t about the music, it wasn’t a response to what he was creating.

Haters gonna hate.

Shun the non-believers.

Do your work, your best work, the work that matters to you. For some people, you can say, “hey, it’s not for you.” That’s okay. If you try to delight the undelightable, you’ve made yourself miserable for no reason.

It’s sort of silly to make yourself miserable, but at least you ought to reserve it for times when you have a good reason.

Accidents are the mother of invention

Here’s a nice piece on the invention of the Slurpee (via Marginal Revolution). An excerpt:

Knedlik’s [Dairy Queen] franchise didn’t have a soda fountain, so he began placing shipments of bottled soda in his freezer to keep them cool. On one occasion, he left the sodas in a little too long, and had to apologetically serve them to his customers half-frozen; they were immensely popular.

When people began to show up demanding the beverages, Knedlik realized he had to find a way to scale, and formulated plans to build a machine that could help him do so.

You never know what customers are going to like. Here’s a secret, kids,– they do not teach you how to figure that out in business school. There’s not a formula or process to follow to do it, other than trial-and-error.

I think executives who are trying to find ways to grow their company should consider using more low-cost, trial-and-error discovery .

Netflix for eBooks?

Over three years ago, I wondered when the Netflix business model would be applied to ebooks. 

I thought it was a huge step forward when I could checkout ebooks to my Kindle apps from my library. That is, until I read the five books that I wanted to read in the limited checkout library.

Then I thought Amazon Prime might be the answer, until I became a Prime member and realized I would need to buy a Kindle device to check out the books. I almost did, until I started trying to find books I could check out. I haven’t found one.

Maybe Oyster Books will do it. But, judging from my first glance at the library, it has even fewer books available for electronic checkout than my local library.

My understanding is that the limited available titles for electronic borrowing is caused by publishers weary of losing revenue. Could be. Too bad someone hasn’t figured a way around that yet.

“Great!”

I recently saw a new “Samsung Experience at Best Buy” TV ad. It features a young, recent grad who needs to update her computer equipment after for a free-lance job.

One part of the commercial I find particularly not compelling is when she asks the Samsung Experience person “How’s the battery life on this one?” The SE person answers, “Great!”

I realize the commercial has to squeeze a lot into a short amount of time, but I thought  they missed a good opportunity to demonstrate expertise by giving a short, but useful answer, possibly with information about battery life that most people don’t think about. While that’s typical of the answers I get when I go to just about any retailer and ask questions, I expect more.

A better answer could be something like, “this model offers a good balance of battery life and weight. It has 5 hours, which is best you’ll find in this category, and you can buy a 4-hour extender if you want more than that.”