The Subscription Meal Delivery space is crowded and competitive. Winning back customers is often difficult, and discounting prices for users a second time does very little to retain them long term and prevent them from jumping to a competitive brand with higher discounts. How do you win a customer back, but also make sure that they don’t leave when the discount period expires?
How much does the psychology of creating habits play into customer retention and loyalty? Many competitors in the space offer relatively high discounts to customers for a 1-2 week period. From our experience, consumers are willing to go back to a brand, provided that the savings present value that is too good to pass up. What if we stretched out the length that a user could apply their discount and made the discount sizable enough that consumers would be willing to try to maximize their exposure to the product?
Rather than using a percentage off discount, we wanted to maximize the perceived value of the discount we were presenting. Rather than offering it for 1-2 weeks, we wanted to stretch this discount over the course of a month. Our hypothesis was that if we could get users to eat the CookUnity meals habitually, regularly, and for a full month, we could win them back in greater volume, and keep them around longer term. We offered a $40 discount off each week for four consecutive weeks, and allowed users to choose their meals and how many of them they wanted per week. With a rotating menu and dishes created by top chefs, our goal was to encourage users to try a variety of different items until they found things they loved.
Users won back in December 2021
Users won back in January 2021
I’m going to need to run some more numbers on this one to see how many of those 253 users have still been retained.