![]() He also avoided talking about customer lifetime value, something his predecessor said is the most important metric for Blue Apron. When asked about customer retention rates, Dickerson didn't give a straight answer. A big underlying problemīlue Apron can ramp up its marketing spend and acquire new customers all day, but if they don't stick around, Blue Apron won't ever become profitable. Investors should keep an eye on it to see if it improves throughout the year as Dickerson expects. That's an early warning that Blue Apron's marketing efficiency may be even worse in the early part of the year than it was last year before it pulled back on marketing spend. To that end, Dickerson plans to ramp up marketing spend again, but he cautioned investors on the fourth-quarter earnings call that the company has lost a lot of marketing momentum. "The focus for us going forward is, definitely, we want to grow our business through new customers, and acquiring new customers, and getting more customers into our offerings," Dickerson said. In 2017, Blue Apron actually lost customers, but Dickerson hopes to turn that around this year. In the 12 months leading up to its IPO, Blue Apron spent $463 in marketing per new customer. In Blue Apron's S-1 filing, it said its average customer acquisition cost was just $94 per customer, but that was based on marketing spend and customer additions from 2014 to 2016. ![]() ![]() Customer acquisition costs were already climbing
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