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How FabFitFun takes a member-centric approach to growth

Women showing their FabFitFun boxes

FabFitFun began in 2010 as a lifestyle blog and newsletter for women. Three years later, it introduced its flagship product, the FabFitFun subscription box. As the company grew, expanding from a few thousand subscribers to over a million, it realized it was potentially losing significant revenue due to payment failures. FabFitFun needed to improve its payment success and optimize its revenue recovery rates.

Custom retry model tailored to unique business needs

Recurly, a company that has processed billions of recurring transactions, provided the necessary expertise to tackle this issue. By identifying patterns and applying machine learning, Recurly developed an effective and dynamic retry logic that repairs failed transactions, enhancing subscriber retention and ultimately increasing monthly revenue.

This was the exact kind of control and solution that the team at FabFitFun was seeking. However, recognizing its unique business needs based on payment volume and other factors, FabFitFun worked with Recurly to develop a truly bespoke solution. The outcome was a custom retry model tailored to FabFitFun's business, ensuring optimal revenue recovery. 

Recurly's Data Science team used a consultative approach, analyzing FabFitFun's payment history to create a model combining machine learning algorithms with custom-built retry rules. 

The Custom Retry Model has been incredibly helpful for FabFitFun.

Anton J., Director of Product ManagementFabFitFun

The results were immediate, with a significant lift in recovery rates and substantial revenue gains. 

At such a large volume of transactions, the revenue recovered is substantial. "In the past, when it came to retries, we were lacking control over the process. We wanted to gain more insight and measure the retry process so we reached out to Recurly and their team of experts to create a roadmap around improving our retry logic,” said Jusufi. “Working with the team at Recurly on a custom retry model helped us address our specific business needs and business logic when it comes to retries and how our business operates. The custom retry model has been incredibly helpful for FabFitFun."

Member-centric approach reduces churn & keeps members loyal

FabFitFun’s member-centric approach is evident in every aspect of its operations. The company refers to its customers as "members," putting them first in every decision. This mindset ensures that every feature and service brings value to members, helping to keep them loyal and engaged. By closely listening to its members through various channels and using insights gained from these interactions, the company effectively addresses both involuntary and voluntary churn

“We say membership versus subscription because that’s what we’ve evolved into,” says FabFitFun Co-founder Katie Rosen Kitchens. “The box is really the premium piece of the membership, but we are continuing to layer on lots of different perks so that, even if you didn’t like all the products in your box, you’re still getting so much value from the overall membership.” These include access to VIP flash sales, an exclusive digital community, and shoppable video content that helps to bring the items to life.

FabFitFun pink box

FabFitFun also recognizes the importance of flexibility for its members, allowing them to easily pause their subscriptions during financial challenges or other situations. During the COVID-19 pandemic, the company quickly adapted their website to meet members' changing needs, offering essential items and little luxuries to brighten their days. 

One of the key reasons why we're able to get where we are is that we are very fast to react and also very flexible. Recurly plays a huge part in that.

Anton J., Director of Product ManagementFabFitFun

This swift adaptation and flexibility are key to FabFitFun's success. "One of the key reasons why we're able to get where we are is that we are very fast to react and also very flexible. Recurly plays a huge part in that," said Jusufi. FabFitFun’s innovative approach to subscription commerce, particularly its unique payment retry strategy and focus on reducing churn, underscores the brand's commitment to its most valuable asset: its members.

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