RENT - Rent the Runway sweetens subscription shipments to cement customer loyalty

2023-03-06 11:00:41 ET

Rent the Runway ( NASDAQ: RENT ) announced on Monday that it is permanently adding an extra item to every shipment made under its rental subscription program.

The company said that the inclusion of an extra item is part of the e-commerce company’s investment in customers and aims to bolster customer retention.

“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,” CEO Jennifer Hyman said. “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.”

The company explained the program will sweeten the deal for subscribers who are in the “8-item, 2-swap plan” to 10 items per month given the bi-monthly rate of shipments. The 5-item plan will only receive one extra item based upon monthly shipping.

Shares of Rent the Runway ( RENT ) fell 3.15% on Monday.

Read more on the company’s recent debt restructuring .

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