New Report Finds That Customers Don’t Stick to Meal Subscription Plans
The first time I got a Blue Apron meal subscription mailing offering the equivalent of three free meals to start their service, I was shocked. They wanted to mail me three fresh, restaurant-quality meals for nothing and then let me cancel with no repercussions? I looked through the fine print and the meal subscription cancellation process but couldn’t find any tricks or loopholes. How could this business strategy possibly work out for them?
According to a report by research firm 1010data, 50% of customers who sign up for meal subscription plans cancel by week two. @mytruebill
Could this customer exodus stem from disreputable business practices or inferior quality? It doesn’t seem to be the case. The cancellation processes for Blue Apron and its competitors like HelloFresh are unassailably straightforward, and their meal subscription plans are all well-reviewed as delicious and perfectly portioned, so there aren’t any complaints of substance to bring against them. Still, we’re have to wonder about the future of this particular subscription business model.
Fast Company’s recent article, Meal-Kit Customers Dine and Dash, points out that despite the issue of retention, the meal-kit industry has grown over 500% in the last two years. With Blue Apron and HelloFresh exploring IPOs, it seems likely that their models are sustainable and healthy in spite of 1010data’s dismal figures. Bon appetit!
Read full article here.