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How Customer Personalisation and Better Margins Can Go Hand in Hand
June 10, 2020 Blog

 

One positive that I have managed to take from weeks of lockdown is the chance to do more cooking and try more new recipes. However, if you are anything like me, then delicious home-cooked dinners lead to “leftovers” for lunch; and that’s not always so appealing.

 

 

It seems I am not alone in this dilemma. In-fact, when meal delivery company HelloFresh looked into data from the 10 million meals it delivers each month, it found that many customers had the same issue.

In response, HelloFresh launched a new offering called “Dinner2Lunch”, which provided ingredients to make a great dinner followed by a creative leftover lunch the next day – all from one meal kit.

Designing personalised offerings for such a vast customer base does not come easy. HelloFresh wanted to be able to get a 360-degree view of each of its millions of customers. And in doing so, treat every customer as an individual right down to specific personalised suggestions and offers.

Technically, this was no easy task. HelloFresh’s legacy SQL database only enabled it to analyse 5TB of data at any one time. However, by moving to Cloudera’s cloud-based open data platform, the company was quickly able to triple the amount of data it could analyse, and make that data available to over 1000 employees.

In theory, personalisation is simple; put the right offer in front of the right person at the right time. But when you have millions of customers, each with different behaviours and preferences and you’re trying to answer the perennial question of “what should I have to eat tonight”, the task is a little more complex.

With the Cloudera enterprise data cloud in place, a 360-degree view of each and every customer was achieved, which, in turn, meant the level of personalisation that HelloFresh customers experience, shot through the roof.

HelloFresh was able to reduce customer dissatisfaction with recipes, increase customer retention and better forecast demand across a varied and intricate supply chain.

 

But here’s the thing. The data helps pay for itself.

Personalisation is often associated with driving more sales, and that’s great. But just as important, personalisation can and should drive higher profit margins.

For HelloFresh, having a complete view of its clientele meant selling more to each customer and reduced customer churn. The data-driven approach may be new, but business principles don’t change. It costs less to sell to an existing customer than it does to acquire a new one.

 

 

HelloFresh also found that when you know your customers, you can better predict what they want. That makes for much more efficient order volume forecasting, or put another way, fewer leftovers in the supply chain! Another business principle continues to hold true; less waste, better margins.

Data touches every part of business performance, from lead generation through to the bottom line. To find out more about how Cloudera can help achieve a 360-degree customer view, click here.

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