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.