![]() Giving customers greater choice could help more subscribers get more value out of Blue Apron. This new move doesn't address the core customer concern of getting value out of what they pay for.īlue Apron is also expanding its menu options and making it easier for customers to change orders. ![]() What's more, it's a lot less efficient to ship a single meal kit than a set of three, and if a customer has to pay for shipping, it makes the offer significantly less attractive. Costco charges less for meal kits in stores than Blue Apron charges online. The moves should expand customer reach, but it will come at the cost of profit margins. It will later expand to offering on-demand delivery through its e-commerce platform. ![]() It started earlier this year, when the company partnered with Costco to make its products available in stores. A refusal to focus on improving retention before ramping up customer acquisition efforts is a recipe for poor marketing efficiency.īlue Apron is working to make its meal kits available on demand instead of through subscription. When asked about customer retention - a metric Blue Apron refuses to provide investors - Dickerson replied, "The challenge for us, we believe, is more on the acquisition side of the business, not on the retention side of the business." He added the retention rate in the second quarter was consistent with the same period last year.īut it's been clear since Blue Apron's IPO that the company has a problem keeping subscribers from cancelling. On the earnings call, CEO Brad Dickerson said the marketing efforts are doing a great job at attracting people to the Blue Apron brand, but it's having a hard time converting website visitors into paid subscribers. After adding 40,000 net new customers in the first quarter, Blue Apron lost 69,000 in the second quarter. After pulling back on marketing spending last year, Blue Apron started ramping up its advertising at the start of 2018, and most investors expected that would result in more customers. Blue Apron (NYSE: APRN) reported a surprising decline in customers in the second quarter.
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