{"id":2994,"date":"2018-12-14T09:17:07","date_gmt":"2018-12-14T03:47:07","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=2994"},"modified":"2024-01-26T00:22:26","modified_gmt":"2024-01-25T18:52:26","slug":"subscription-box-automation-ai-stylist-best","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/ai-in-retail\/subscription-box-automation-ai-stylist-best\/","title":{"rendered":"Subscription Box Automation Powered By AI in Fashion Retail"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f877e48fe14\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f877e48fe14\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/subscription-box-automation-ai-stylist-best\/#customer-acquisition-just-got-harder\" title=\"Customer Acquisition Just Got Harder\">Customer Acquisition Just Got Harder<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/subscription-box-automation-ai-stylist-best\/#consumers-want-great-experiences-not-great-subscriptions\" title=\"Consumers Want Great Experiences, Not Great Subscriptions\">Consumers Want Great Experiences, Not Great Subscriptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/subscription-box-automation-ai-stylist-best\/#deliver-personalized-styling-and-outfitting-at-scale-with-ai\" title=\"Deliver Personalized Styling And Outfitting At Scale With AI\">Deliver Personalized Styling And Outfitting At Scale With AI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/subscription-box-automation-ai-stylist-best\/#enter-vuestyle-an-ai-stylist-assistant\" title=\"Enter VueStyle, An AI Stylist Assistant\">Enter VueStyle, An AI Stylist Assistant<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><h2><span class=\"ez-toc-section\" id=\"customer-acquisition-just-got-harder\"><\/span><b>Customer Acquisition Just Got Harder<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Just when you think you have cracked the subscription box phenomenon, you realize that there is competition all around, and is catching up to you like the plague. Gone are the days when you can dangle the outfit Gigi Hadid wore in New York Fashion week, or its lookalike, and expect sales to shoot up. Gone are the days when you can send out questionnaires, make phone calls and chat up your customers to understand what colors and styles they fancy. Independent retailers might seemingly have an edge from big-box retailers, due to their ability to establish stronger relationships with their smaller consumer base &amp; curate thematic outfits for lower logistical costs as well as keep their churn rates low, but even the most successful of the lot &#8211; including Ipsy, Dollar Shave Club, Home Chef and Birchbox &#8211; \u00a0all saw lower visits over the last year, according to Hitwise<\/span> <a href=\"https:\/\/www.forbes.com\/sites\/andriacheng\/2018\/05\/30\/the-subscription-box-industry-is-getting-more-crowded-than-ever\/#548925963a39\"><span style=\"font-weight: 400;\">(Forbes)<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what is the buzz around the subscription box model in the first place?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The subscription box business model can be lucrative. Bonding with shoppers through subscription services, keeping them engaged with exciting new offerings can be a great way to foster customer retention. The subscription box market has seen a growth of <\/span><a href=\"https:\/\/www.retaildive.com\/news\/are-subscription-services-viable-for-independent-retailers\/532785\/\"><span style=\"font-weight: 400;\">100%<\/span><\/a><span style=\"font-weight: 400;\"> in the last five years, acting as one viable solution to boost customer retention by providing convenient, personalized and sometimes lower-cost ways to shop. <\/span><a href=\"https:\/\/www.mckinsey.com\/industries\/high-tech\/our-insights\/thinking-inside-the-subscription-box-new-research-on-ecommerce-consumers\"><span style=\"font-weight: 400;\">The largest such retailers generated more than $2.6 billion in sales in 2016, up from a mere $57.0 million in 2011<\/span><span style=\"font-weight: 400;\">.<\/span><\/a><span style=\"font-weight: 400;\"> For those who subscribe, <\/span><a href=\"https:\/\/www.mckinsey.com\/industries\/high-tech\/our-insights\/thinking-inside-the-subscription-box-new-research-on-ecommerce-consumers\"><span style=\"font-weight: 400;\">a study by McKinsey and Co.<\/span><\/a><span style=\"font-weight: 400;\">, found that nearly <\/span><a href=\"https:\/\/www.mckinsey.com\/industries\/high-tech\/our-insights\/thinking-inside-the-subscription-box-new-research-on-ecommerce-consumers\"><b>35 percent <\/b><span style=\"font-weight: 400;\">have three or more active<\/span><\/a><span style=\"font-weight: 400;\"> subscriptions while <\/span><b>15 percent of online shoppers<\/b><span style=\"font-weight: 400;\"> have signed up for one or more subscriptions to receive products on a recurring basis, frequently through monthly boxes<\/span><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While this is an attractive way to generate a new stream of revenue for retailers today, the visit rate in the top subscription sites is down from <\/span><a href=\"https:\/\/www.forbes.com\/sites\/andriacheng\/2018\/05\/30\/the-subscription-box-industry-is-getting-more-crowded-than-ever\/#548925963a39\"><b>70% to 61%<\/b><\/a><span style=\"font-weight: 400;\"> earlier this year, according to Hitwise. Competition from brands across the board, that are figuring out ways to include the subscription box model in their repertoire, are keeping customer acquisition costs and churn rates high. \u00a0The expectations from retailers today are far more sophisticated in that the typical consumer &#8211; often younger, affluent urbanites &#8211; want access to personal stylists, and are quick to pounce on the next shiny fad around.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"consumers-want-great-experiences-not-great-subscriptions\"><\/span><b>Consumers Want Great Experiences, Not Great Subscriptions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Consumers do not inherently gravitate towards subscriptions, often fearing long term commitments to services that may not fully cater to their requirements. According to <\/span><a href=\"https:\/\/www.mckinsey.com\/industries\/high-tech\/our-insights\/thinking-inside-the-subscription-box-new-research-on-ecommerce-consumers\"><span style=\"font-weight: 400;\">McKinsey and Co.\u2019s study<\/span><\/a><span style=\"font-weight: 400;\">, only <\/span><b>55 percent<\/b><span style=\"font-weight: 400;\"> of those who consider a service ultimately subscribe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customer retention and acquisition can be an expensive ordeal for players in this market. A big worry for brands today is the cost of scaling their subscription box model. Most retailers charge monthly fees, with some having higher structures depending on the size of their customer base. A typical conundrum they face is how they can put a cap on the fees they charge while containing the level of churn and keeping their offerings exciting enough to maintain long term relationships. While monthly fees is often the deterrent for long term customer subscription engagements, it is also key for retailers to make a profit out of this revenue stream. <\/span><\/p>\n<p><a href=\"https:\/\/www.mckinsey.com\/industries\/high-tech\/our-insights\/thinking-inside-the-subscription-box-new-research-on-ecommerce-consumers\"><span style=\"font-weight: 400;\">Key issues<\/span><\/a><span style=\"font-weight: 400;\"> that dissuade consumers from continuing\/ starting a subscription:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Poor product quality <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Dissatisfaction with the assortment<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lack of perceived value of subscription <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lack of customized offerings <\/span><\/li>\n<\/ol>\n<p><a href=\"https:\/\/www.mckinsey.com\/industries\/high-tech\/our-insights\/thinking-inside-the-subscription-box-new-research-on-ecommerce-consumers\"><span style=\"font-weight: 400;\">According to a study by McKinsey &amp; Co.<\/span><\/a><span style=\"font-weight: 400;\">, curation services with <\/span><b>55 percent<\/b><span style=\"font-weight: 400;\"> of total subscriptions, are by far the most popular, suggesting a strong desire for personalized services. <\/span><\/p>\n<figure id=\"attachment_3000\" aria-describedby=\"caption-attachment-3000\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3000\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/SVGZ-Thinking-inside-subscription-box-ex3-1-1.png\" alt=\"\" width=\"750\" height=\"659\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/SVGZ-Thinking-inside-subscription-box-ex3-1-1.png 560w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/SVGZ-Thinking-inside-subscription-box-ex3-1-1-300x264.png 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-3000\" class=\"wp-caption-text\">Source: McKinsey<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">An exception to the slowing traffic to subscription box retailers sites, is StitchFix, a styling service for men, women and kids, that personalizes outfits for their customers and sends them to their doorstep. StitchFix\u2019s personalizing offering helped keep their churn rates at bay.<\/span><\/p>\n<figure id=\"attachment_2997\" aria-describedby=\"caption-attachment-2997\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2997\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/Screenshot-2018-12-14-at-2.27.02-PM.png\" alt=\"\" width=\"750\" height=\"459\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/Screenshot-2018-12-14-at-2.27.02-PM.png 1047w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/Screenshot-2018-12-14-at-2.27.02-PM-300x184.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/Screenshot-2018-12-14-at-2.27.02-PM-768x470.png 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/Screenshot-2018-12-14-at-2.27.02-PM-1024x627.png 1024w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-2997\" class=\"wp-caption-text\">Source: McKinsey<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">A key way to keep your subscriber engaged is to keep things personal and innovative. Word of mouth recommendations contribute largely to new subscription acquisitions as shown above from Mckinsey and Co.\u2019s study, however delivering superior experiences can influence how long they plan to stick around. Consumers are quick in trying out new services, however they are just as quick to dismiss the ones they feel don\u2019t get their vibe. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The good news is<\/span><b>, <\/b><span style=\"font-weight: 400;\">whether you are an independent retailer or a larger marketplace, you no longer need to think twice about providing experiential shopping at scale. AI &#8211; driven styling and outfitting is designed to save you the trouble of having to think and curate styles for millions of consumers out there. Your best bet is to sit back and let AI be a part of your toolkit. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here is why and how this works.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"deliver-personalized-styling-and-outfitting-at-scale-with-ai\"><\/span><b>Deliver Personalized Styling And Outfitting At Scale With AI<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If they like you, they stick around. How can retailers navigate through the logistical issues of curating <a href=\"https:\/\/www.vue.ai\/products\/outfit-recommendations\/\">personalized outfits<\/a>, avoid the hassle of legacy processes like feedback questionnaires, phone calls and reduce customer acquisition costs? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Personalization has been a buzzword for quite some time and so has the the idea of using Artificial Intelligence for fashion. Vembar, author of a piece on <\/span><a href=\"https:\/\/www.retaildive.com\/news\/are-subscription-services-viable-for-independent-retailers\/532785\/\"><span style=\"font-weight: 400;\">Retail Dive,<\/span><\/a><span style=\"font-weight: 400;\"> highlighted that \u00a0<\/span><i><span style=\"font-weight: 400;\">\u201cMulti-million dollar subscription box retailers have gone beyond analog methodologies and instead rely on algorithms to attempt personalization of product selection.<\/span><\/i><span style=\"font-weight: 400;\">\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">What does this mean for the subscription box wave of retailers? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Luckily for us &#8211; visual merchandising today is a heavy beneficiary of AI &#8211; driven algorithms that can be conveniently molded to act as virtual stylists. This is not to say that it can compete with a human stylist, but instead, it enables human stylists and merchandising teams with accurate styling and outfitting suggestions, saving them time for manual outfit creation, and dealing with out of stock items. Dynamic personalization algorithms can learn from the rules of lifestyle and fashion from human stylists and lookbooks, and also forms style associations from the \u00a0nuances of individual user shopping behaviour. AI can understand the visual elements of any apparel, learn with every product click, scroll, page view, cart addition or any user action on a site, thus seamlessly being able to automate the process of curating <a href=\"https:\/\/www.vue.ai\/products\/outfit-recommendations\/\">personalized outfits<\/a> for individual consumers. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">AI enabled styling and outfitting: <\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Saves time and resources spent on manual curation<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Automates the process of one to one <a href=\"https:\/\/www.vue.ai\/solutions\/ai-personalization-engine\/\">personalization<\/a>, allowing you to do this at scale <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Boosts customer retention and loyalty through personalized virtual stylists and closets<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Inspires your shoppers and helps them discover style combinations across all channels of engagement <\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Taking a case in point &#8211; Ashley Duncan (in the image below). Ashley loves her reds and other similar color tones. She is also specific about the patterns she likes &#8211; stripes and floral for certain occasions. The web diagram in the above image indicates the learning mechanism that the algorithms use in arriving at a persona for Ashley. <\/span><\/p>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2998\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/style-box-automation.png\" alt=\"\" width=\"750\" height=\"420\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/style-box-automation.png 1280w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/style-box-automation-300x168.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/style-box-automation-768x430.png 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/style-box-automation-1024x574.png 1024w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/>\n<p><span style=\"font-weight: 400;\">Taking into account some of the items Ashley has already purchased (in the image below), it becomes easier to curate outfits that she can match with what she owns. \u00a0Shown are some combinations that the algorithms curate, taking into account the out of stock items. Pretty chic right?<\/span><\/p>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2999\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/customer-retention-and-loyalty.png\" alt=\"\" width=\"750\" height=\"420\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/customer-retention-and-loyalty.png 1280w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/customer-retention-and-loyalty-300x168.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/customer-retention-and-loyalty-768x430.png 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/12\/customer-retention-and-loyalty-1024x574.png 1024w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/>\n<p><span style=\"font-weight: 400;\">Whether you want to style your customers through doorstep deliveries, or put up a virtual stylist for individual account pages, or empower your in store associates in becoming a personal stylist on their own, Image Recognition based styling and <a href=\"https:\/\/www.vue.ai\/products\/outfit-recommendations\/\">outfitting tools<\/a> can empower your brand in ways you may not have explored before.<\/span><\/p>\n<blockquote><p><strong>The key reason for success is the ability AI provides in being able to deliver consistently and at scale, keeping your costs low and being able to cater to large consumer bases in real- time.<\/strong><\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"enter-vuestyle-an-ai-stylist-assistant\"><\/span><strong>Enter VueStyle, An AI Stylist Assistant<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.vue.ai\/products\/outfit-recommendations\/\">VueStyle<\/a> is a smart merchandising tool for stylists and site merchandisers in fashion retailers. With our Subscription Box Curation tool, scaling can be made effortlessly efficient. You can automate product selection based on customers\u2019 style and fit preferences, and use your human stylists for final approval. With advanced built-in analytics, VueStyle gets smarter with every box.<\/p>\n<p><a href=\"https:\/\/www.vue.ai\/products\/outfit-recommendations\/\">Learn more here<\/a>.<\/p>\n<p>We were featured in a <strong>Forbes article<\/strong> about subscription boxes &#8211;\u00a0<a href=\"https:\/\/www.forbes.com\/sites\/insights-intelai\/2018\/09\/21\/out-of-the-subscription-box-how-ai-can-redesign-customer-experience\/#30478cfa7318\">Out Of The (Subscription) Box: How AI Can Redesign Customer Experience<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> Customer Acquisition Just Got Harder Just when you think you have cracked the subscription box phenomenon, you realize that there is competition all around, and is catching up to you like the plague. Gone are the days when you can dangle the outfit Gigi Hadid wore in New York Fashion week, or its lookalike, and  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":3001,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1162],"tags":[30,55,27,34,8,193],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Subscription Box Automation Powered By AI in Fashion Retail | Vue.ai<\/title>\n<meta name=\"description\" content=\"Subscription box automation Powered by AI can be made effortlessly efficient with Vue. 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