Transform Your Customer Service into a Loyalty Powerhouse: The Rent the Runway Strategy
Inc.com3 weeks ago
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Transform Your Customer Service into a Loyalty Powerhouse: The Rent the Runway Strategy

CUSTOMER SERVICE TIPS
customerservice
loyalty
businessstrategy
renttherunway
engagement
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Summary:

  • Rent the Runway discovered that customer service interactions boost loyalty rates

  • Shifted from inbound to outbound customer service, engaging customers proactively

  • Eliminated mundane tasks by integrating solutions into their platform or outsourcing

  • Now interacts with half of its customers monthly, achieving record loyalty rates

  • Ended fiscal year 2024 with $306.2 million in total revenue, a 3% increase year-over-year

How Rent the Runway Revolutionized Customer Service

Two years ago, Rent the Runway (RTR) co-founder and CEO Jennifer Hyman made a groundbreaking discovery. Customers who interacted with RTR’s customer service team exhibited higher loyalty rates than those who didn’t. This insight led to a strategic overhaul of their customer experience approach.

From Inbound to Outbound: A Strategic Shift

In 2024, RTR tested and later implemented a bold strategy in Q1 of 2025. They eliminated mundane tasks like locating shipping labels by integrating solutions into their platform or outsourcing. This freed up their team to shift from an inbound to an outbound model, proactively engaging customers rather than waiting for issues to arise.

Proactive Engagement: The Four Seasons Approach

Hyman drew inspiration from the Four Seasons, where guests are personally guided upon arrival. Similarly, RTR’s team now engages with customers to enhance their overall experience, treating each interaction as part of a lifelong relationship.

The Results Speak for Themselves

With the new strategy, RTR’s customer experience team now interacts with half of its customers monthly, leading to some of the highest loyalty rates in the company’s history. Fiscal year 2024 ended with $306.2 million in total revenue, a 3% increase year-over-year.

Key Takeaway: “We’re not going to wait for someone to reach out to us with a problem. We’re going to leverage the best talent that we have within the organization to ensure that we are making each customer’s experience with Rent the Runway awesome.”

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