After dinner at friends, we were just leaving when I was asked, “Hey, do you want a free food box?”.
Immediately my curiosity kicked in.
I wanted to know where this funnel was going. What’s the offer? What do I need to do to earn this “free” food? Even though I was highly curious I am always skeptical when it comes to referral marketing. Do I trust this is a genuine offer?
I was handed a Hello Fresh business card.
First of all, this was a good one....they had grabbed my attention. “Value up to $144.99”. I would almost go as far as to call this an irresistible offer.
I knew the company, seen their ads, knew of other friends using it, however had never been compelled to look into it myself till now, and wanted to investigate what else they were doing to growth hack.
After a quick search, I found the following:
On their website I could save $90 and free shipping off my first box. Trying to leave the site after browsing, I’m offered $29.99 off my first order.
I checked out social and found there are communities, private groups, and dedicated discount code pages.
On Youtube I find screeds of videos of influencers demonstrating opening the box experience as well as offers of 50% off your first box using special discount codes. None of these offers come close to the one I was introduced to.
Hello Fresh clearly has a growth team. They are running multiple experiments for acquisition and awareness, with multiple different offers on multiple channels.
This is an insight into how they have notched up the number one status for meal-kit companies on the planet whilst operating in a competitive and increasingly saturated industry. What’s interesting is they have entered the NZ market without resting on their laurels relying on their big brand name and overseas success. Hello Fresh is actively experimenting to find out what works in this environment, in THIS context.
Back to the offer that grabbed my attention… let’s see where it takes me.
First step, visit hellofresh.co.nz and select a meal plan…. Ok.
I selected The ‘Classic Plan’ for four people and five days just to see if I can get the max out of these guys.
Subtotal equals $179.81. $34.82 over the offer.
To my surprise they applied the $144.99 as a discount anyway and didn’t request I select another option. I decided that $34.82 was still a good deal and was happy to be a conversion statistic for my own research.
After completing the order I am hit again with an offer of more discounts if I refer to friends...who also receive discounts. And so the loop continues as Hello Fresh permeates their way into the market.
I skip this then before I leave they hit me with wanting to know how I heard about them.
And finally I got out of there.
Our box arrived, on time, the following week.
I have to admit it was a bit exciting. Even though I chose the meals I was still looking forward to seeing what was inside.
Five recipe sheets, 5 individual paper bags each filled with portioned ingredients. The bags are colour coded to the recipe sheets. Mistake proofing. I like it.
What followed was a week of good food and hassle-free meal times.
So how can Hello Fresh offer this sort of value over and over and not go bust?
Because they’ve tested the market, run hypotheses and know their numbers.
They know how many people grab the freebie and never buy again, and they also know how many people are likely to buy a first, second and third time. As most probably do. Why? Because this clever company has found the quickest way to get new customers to the aha moment - which is the moment they first experience the value. The value in convenient and nutritious food. Once your customers experience the value they will buy again, so the key is to make sure they experience it before they lose interest.
The faster you can get your customers to the aha moment, the faster you will grow.Thursday, 28 May 2020