shoedazzle: how and why does it work?
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![Page 1: Shoedazzle: How and Why does it work?](https://reader033.vdocument.in/reader033/viewer/2022042818/55b64b40bb61eb5a498b45fa/html5/thumbnails/1.jpg)
Online Retail Subscription:
How and why does it work?
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What is an online retail subscription? It is a product-by-subscription business
model.
Customers pay a monthly fee, similar to a Netflix subscription, in order to
receive exclusive membership benefits.
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What are the benefits of a membership?•Exclusive prices
Shoedazzle offers members a lower “VIP” price
•Free shipping and returns on any order
•First chance at sales
Receive alerts before items go on sale
•Occasional free spending credit
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How does it work?
New customers are drawn in with a special one-time promotion plus free shipping and returns
Shoedazzle offers new customers 25% off first purchase and free shipping
After your first purchase, you are given the option of becoming a VIP member to continue receiving benefits.
A VIP member pays a monthly fee.
Monthly Fee = Store Credit aka VIP dollars (for you to spend or save)
Some sites will give you the option to “skip the month”
Some sites will automatically make you a member after the first purchase
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Why does it work?#1. Visual Gain vs. Visual Loss
Would you rather see:$35.95 + shipping $4.95
Order Total: $40.90
OR
$35.95 - VIP dollars $9.95
shipping: FREE
Order Total: $26.00
•Every month your credit card (CC) is automatically charged the monthly fee $9.95 and that fee becomes your VIP dollars.
•VIP dollars are for you to spend on purchases and are deducted from the order total, appearing as if you received a discount
Every month your credit card (CC) is automatically charged the monthly fee $9.95 and that fee becomes your VIP dollars.
VIP dollars are for you to spend on purchases and are deducted from the order total, appearing as if you received a discount
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#2. Accumulation and Expiration
• If you do not spend your VIP dollars, they will accumulate, but they will expire after a certain number of months
• As the number in your account increases (VIP dollars: $19.90...$29.85) and/or the expiration date gets closer there is an incentive to spend it.
Even if the customer does not make a purchase every month, Shoedazzle can still expect to earn at least
$9.95 a month per member.
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#3 Loyalty
“A subscription model allows you to establish long-term relationships with customers as opposed to selling them
one pair of shoes and hoping they come back.” ~ Co-Founder Brian Lee
Membership
Incentive to stick to Shoedazzle
Familiarity
Trust
Loyalty