- Blue Apron’s customer acquisition costs are astronomical.
- The competition has gotten much more intense over the past nine months.
- It now costs $ 463 to acquire each new customer, up from $ 94 in 2014 to 2016.
When Blue Apron gave investors their first glimpse at its financials with its S-1 IPO filing last year, one trend stuck out like a sore thumb. Blue Apron’s customer acquisition costs were climbing astronomically, and its marketing spending was getting less and less efficient. That came to the fore when the company pulled back on marketing spending in the latter half of 2017 and saw its customer base tank.
Nine months later, the problem may be even worse. At a recent investors conference, Blue Apron CEO Brad Dickerson said, “I’m a firm believer that the acquisition of new customers, everything being equal, will increasingly continue to be more and more challenging as more competition, more people spending money on voice and marketing” enter the market.See the rest of the story at Business Insider
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