Dive Brief:
- According to its first-ever Social Sentiment and Performance Scorecard evaluating two leading meal kit delivery services, social media analytics firm Tracx found Blue Apron is winning in terms of sheer volume of followers and conversations, but HelloFresh is hot on their heels with much greater interaction and engagement.
- Blue Apron tops HelloFresh in terms of positive sentiment with conversations mostly involving meal delivery services and home cooking. HelloFresh sentiment revolved around clean, healthy eating and fitness. Negative sentiment for both services centered around customer service and delivery issues.
- The study measured and analyzed nearly 350,000 social conversations, posts, and interactions, sentiment and engagement across the top 14 social networks from May 14 through June 12. Since Blue Apron is currently in the IPO process, the study excluded posts containing the terms “IPO” and “public,” as well as any sponsored ads.
Dive Insight:
Pitting Blue Apron against HelloFresh to determine who wins the social media game isn't the real issue here. It's the fact that these emerging food delivery models are creating a tremendous amount of buzz and social media chatter. This is especially important when trying to attract and retain customers — particularly younger ones who are intended targets for the meal kit companies. In fact, millennials and Gen X consumers are 321% more likely to purchase meal kits, according to Nielsen, and are likely to share and discuss their experiences on social media.
Meal kits remain a fairly small and fledgling business. Nielsen Fresh data shows meal kit sales at U.S grocers totaled $80.6 million during the past year. To put it in perspective, that's about the equivalent revenue of four grocery stores. A recent Harris Poll found one in four adults have tried using a meal kit, and 70% returned following the first purchase. But other statistics show meal kits remain a niche market. According to research conducted last year by The NPD Group, only 3% of consumers — or 8 million people — have tried meal kit services. About half of those quickly canceled their subscriptions.
Although online companies such as Blue Apron, HelloFresh and Plated started the meal kit trend, they certainly don’t own customer loyalty in the space. Now grocers such as Kroger and Publix are also offering branded meal kits that leverage their fresh capabilities and offer higher margins.
As more retailers get into the delivery space for these prepackaged items, companies like Blue Apron and HelloFresh need to be even more aggressive in acquiring and retaining customers. In its company prospectus, Blue Apron states that it has spent "significant amounts" on advertising and other marketing activities. This line item soared from $14 million in 2014 to $144 million last year, an increase of 930% over that period.
So the huge volume of social media marketing and digital activity being generated by Blue Apron and HelloFresh, according to the Tracx study, isn’t surprising — and actually is a very good thing. Having engaged fans is a key to building a successful brand and a loyal, repeat customer base.
“Social media is integral to the success of meal kit businesses,” stated Tracx CMO Jenifer Kern in a press release. “Social media shapes overall reputation, how they build their brand, expand their reach, and interact with consumers. These businesses … rely heavily on social media marketing to drive customer acquisitions — the key metric of their growth and success.”