The way tech-savvy companies compete for business these days has some big players scrambling to upgrade their offerings. In some cases, tech-savvy startups have found a special niche that consumers love. Others have ramped up existing products or services, and the way they deal with customers. But the most creative companies have looked to technology and digital resources to give them the edge over their competitors, regardless of size. And today’s advances allow for ease and agility regardless of traditional assets like buildings, storage capacity, etc. Using mobile applications, cloud computing, and custom software are a few of reasons tech-savvy companies compete for business and win.
Scratching out a special niche
Stitch Fix, considered one of the best online styling companies, recently released their 2018 fourth quarter financial results. Along with boasting a 25% increase in clients and 23% increase in revenue over last year, this amazing company announced plans to enter the U.K. market. And their claim to fame is providing a personalized wardrobe service delivered straight to your door. But they describe themselves as “reinventing the shopping experience by delivering one-to-one personalization to our clients, through the combination of data science and human judgment.” A young subscription clothing company founded in 2011 by Katrina Lake, the company went public last year. But unlike Amazon, who provides a vast array of choices for consumers, Stitch Fix delivers five pieces. And these pieces are based on customer data. As Lake contends, “It’s a very select group of things that we think are highly relevant” for customers.
But it’s “mastering the digital clothing model for adults” that makes Stitch Fix a disruptive retailer who’s successfully taking on traditional stores. As a Forbes article states, using a “geeky algorithm” is responsible for the company’s recent surge in clients and revenue. The ability to personalize is largely due to what the company describes as its “team of over 75 data scientists.” However, it’s the data that differentiates them with over 85 “meaningful” data points about each customer’s style and price preferences. Customers voluntarily provide the information. And with sales expected to reach over $1 billion for the first time, Stitch Fix is now going after the kids’ market. The company can certainly write the niche chapter on how tech-savvy companies compete for business.
Battling big players with a better user experience
Described as a “hybrid of eBay and Craigslist,” OfferUp lets users buy and sell items locally. Think of it as a digital neighborhood garage sale. Giving buyers an alternative to Craig’s List and eBay, OfferUp’s easy-to-use app provides an experience like Instagram. For example, users can scroll through images of things to buy. And buyers are happy to skip dealing with the endless listings found on Craig’s List. They’re happy to skip paying a fortune in shipping from a seller across the globe like eBay. In addition, buyers and sellers easily communicate through the app’s messaging system. And OfferUp’s reviews confirm it’s “arguably the most user-friendly platform out there for buying and selling goods.” By raising more than $39 million through August 2018, OfferUp is ramping up to take on some big players including Craigslist, eBay, and Facebook.
Transforming an industry with management software
At 2U, they call it “secret sauce.” It’s the combination of “technology and machine learning with a human touch” that drives this successful company as they transform higher education. Partnering with top universities, 2U brings to the table the best possible experience for students to earn an online degree. And, they do this with technology to support all processes as well as students and faculty. As a top performer providing tech to the education world, they attribute their success to “highly advanced learning-management software.” Raising nearly $100 million in venture capital, 2U gives credit to the company’s focus on technology and “hiring some of the best technologists in the industry.”
Competing with digital technologies
Learning how tech-savvy companies compete for business demonstrates how some entrepreneurs are disrupting traditional ways of attracting and keeping customers. More than ever, technology is opening doors to increasing clients and revenue. And custom software is providing endless opportunities to transform processes, products, and services. But staying in the game to win just got a little tougher for traditional diehards.