Back in September 2012, ShoeDazzle founder Brian Lee became CEO of the company that he co-founded with celebrity Kim Kardashian. After Lee became CEO, he reorganized the company to focus on shoes and accessories and signed celebrity stylist Rachel Zoe. The company also launched a new e-mail newsletter called “Daily Fix” to increase their engagement. ?It?s probably been the busiest 100 days of my life,? said Lee in an interview with TechCrunch. The company is also reintroducing subscriptions in the next few weeks. The $39.95 price plan is being eliminated and is being replaced with a $9.95 plan.
The original $39.95 plan allowed consumers to pick a new pair of shoes for $40. If the consumer did not like anything, they could skip a month and not be charged. If the consumer did nothing, the subscription fee would be deducted, but they would have the $40 added to their account as a credit for future purchases. The $9.95 plan will be added to ShoeDazzle’s customer accounts as credits that can be accrued and used at any time over the course of a year. People that sign up will receive discounts of 10-25% off of ShoeDazzle merchandise. They will get free shipping for both shipments and returns and prioritized access to sales items.
The company added multiple new brands of shoes and they are hoping that the new plan will increase engagement. The company launched a beta version of the new plan on January 14th and invited high-value users to try it out. Around 20% of those that were invited joined the program. When Lee returned as CEO, he had laid off about 24 employees.