Subscription

Hello Fresh is Business to a customer-oriented type of e-commerce and aggregates of widely activities nature to sell products using a subscription model. Grewal et al. 2016, defines a subscription as an agreement between companies and consumers on recurring deliveries of products and services. The subscriber needs only to sign up and is ready to receive a regular delivery on a chosen day (Reinartz 2016, p.3).

Subscription starts to spread rapidly because of its high and long-term profitability perspective and a high degree of automation (Bischof and Rudolph, 2021). The subscription industry sees a more than 400% increase in revenue growth (SUBTA, 2021). According to the Subscription Trade Association (SUBTA), the food and beverage sector has a 100% increase, in particular, Hello fresh has an 83.7% increase year to year and 5.29 million active customers in 2021 and has a good prerequisite to be successful in 2022. Due to Covid-19 and following changes in shopping behaviour, demand for subscription services will expect to increase significantly.

Flexibility is a key component of a subscription service; you can choose how many meals per week do you need to customizable weekly menus and to change in advance. If it comes to unforeseen circumstances, you can skip a week, cancel or pause, and continue again when ready.

Bischof and Rudolph (2021) think subscription renewal after first delivery is crucial for the company and if customers remain their subscription is a sign that will be a regular one. They summarized the main strategies of the model to be successful: relevant need, customer demand, perseverance, the ability for optimization, and innovative approach in a long-term plan.

The authors define four basic types of subscription: Predefined, Access, Curated, and Surprise. Hello Fresh is classified as Predefined – transactional and personalised as buyers select a product that they will receive at intervals.

Following (Cox and Dale, 2002, cited in Bocij, 2018, p. 403) key quality factors for a good website, Hello Fresh web page strengths are clarity of purpose, good speed, simple design, focusing on meal pictures content, and call to action by requesting to sign up to order and subscribe. Easy to navigate when choosing or changing a plan or number of meals, calculating the final price before signing up and paying.

Recommendation:

Mentions the benefits which order will give to buyers will encourage to take action, positioning extremely delicious pictures and video will push the desire to cook them.

Hello Fresh offers up to 4 people, 3 to 5 days weekly, having the option for a changing the size portion for than 4 people will give an additional alternative.