Dive Brief:

• TechStyle Fashion Group, which operates ShoeDazzle, JustFab, FabKids, Fabletics and Savage X Fenty,  now has more than five million active members, according to a TechStyle press release.

• Program members are provided access to discounted merchandise, free shipping and personalized style suggestions in exchange for visiting the brand site or store at least once a month to see new collections and decide whether to buy the items or skip that particular month, according to the release. 

• TechStyle also said it is coming off a year during which it surpassed $750 million in annual revenue and expanded its brand portfolio. Last summer, the company's Fabletics brand announced it would open 75 new brick-and-mortar stores.

Dive Insight:

TechStyle's announcement of a large, active member base comes a few years after the company was widely criticized for allegedly making it difficult for consumers to cancel those memberships. The VIP membership is free to join, but members pay a monthly fee if they want to buy anything, which can be applied as credit to items they're purchasing. Members also have the option of skipping a month and not being charged, but if they do neither, a charge goes on their membership account, which can be used as credit toward a future purchase.

With five million active members, this approach seems to be working for now. It has the added benefit of drawing loyal customers to TechStyle brands' websites every month, even when they aren't planning to buy something, which keeps the brands top of mind for consumers. It also serves as an example that retailer memberships and loyalty programs are continuing to evolve, with retailers trying everything from paid membership programs with high-value services to members-only stores to entice shoppers and win their loyalty.

A TechCrunch story reporting on the company's announcement also suggested the membership increases and revenue could put it in a good position for an initial public offering.