Colin Barry

Rent the Runway (LTV, Monday, Week 4)


Systematic and focused hypothesis testing at the outset:
-- Will women rent?
-- Will women rent without seeing dresses?
-- Will women damage dresses?
BUT equally important "customer interview" type function ==>> early tests give founders insight into how customers are using product: aspirational purchase; selling "Cinderella for a night"
-- RTR raised seed money BEFORE several key tests. Was this actually a Lean startup? In hindsight, it worked out swimmingly...

Jenn/Jenny thoughts:
-- New customer behavior = challenging. People need reassurance and "social proof" before they do new things.
==>> RTR customers need 7 or 8 "touchpoints"/interactions with with the brand to feel comfortable with the model. Recommendation from a friend, advertising, news stories, etc.
-- RTR is primarily a marketing company. Renting is not inherently cool --- RTR needs to feel like renting a Ferrari, not renting a Chevy. Virality depends on customer's willingness to talk about renting her dress from RTR.
-- Products as marketing => Drop an extra $1.5K handbag in the shipping box with a dress rental: customer shows off bag and talks about experience, drive virality.