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Subscription programs for consumable products extend scope of online grocery shopping and personalization.
Getting snacks delivered your mail box yet? If not, chances are someone you know is or will give them a try soon. The web-based subscription snack service space is heating up.
General Mills’ incubator-generated Nibblr started rolling out in the US late last year and competes with the likes of Graze, NatureBox and several others. New to the US, Graze comes from the UK, where they ship 300,000 boxes weekly and generated $70 million in sales last year, according to this Bloomberg News article.
These services are more than just replenishing the pantry with your favorite chip. In the personalized snack subscription business, the quality, taste, quantity, and story behind each featured snack item – plus even the speed at which that first delivery arrives after the subscription is started – are all important to the overall value proposition.
Interestingly, Graze describes itself as data and technology company because they personalize their offering by continually analyzing customer preferences, ratings, and inventory using an algorithm they call DARWIN (short for “Decision Algorithm Rating What Ingredient’s Next”). Data-crunching is also crucial to selecting the most cost-effective delivery option for the company.
When subscription services succeed, it’s because shoppers value the discovery, convenience, and/or personalization. The appeal and acceptance of this type of subscription shows that online grocery shopping goes beyond just searching for an item or ordering the week’s groceries – it’s also about about slicing the market in different ways.
Image credit: nibblr.com
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