JTBD Theory, AI and Groceries
The Success of Hungryroot in the Competitive Online Grocery Market
In the crowded grocery market, Hungryroot stands out despite competing against giants like Amazon and Instacart. What makes Hungryroot's success interesting is not just their growth but the strategic approach.
Business Model Meets (Jobs to be Done) JTBD Theory
Hungryroot's unique business model is a key factor in its success. Unlike traditional grocery stores, Hungryroot offers around 600 unique items each week. Compare this to Trader Joe's 4,000 items or an average grocery store’s 35,000 items. Hungryroot’s value isn’t in offering everything under the sun but in how it utilizes its selection.
CEO and Founder Ben McKean explains. “We have 600 items, but we offer over 6,000 recipes using those items. That offers personalization and helps the customer know what they want to do. The recipes are always evolving with the assortment. In a typical grocery experience, there’s no element of discovery. But our customers are coming to us with other objectives like losing weight or improving blood work. We understand the Jobs to be Done, or fundamental motivations and problems to be solved, of our customers and help them achieve it. We’re effectively doing the grocery shopping, the meal planning, and the entire process for the customer. Because we’re doing that, it allows us to surprise them.”
Creating a Personalized User Experience
Hungryroot’s customer experience is highly tailored. The company starts by asking customers about their food preferences and habits, and refines this understanding with each delivery.
McKean notes that they carefully optimize the customer journey, asking relevant questions only when necessary. This process relies heavily on data insights to predict customer needs accurately. For instance, while many customers claim they want to eat healthier, their actions might tell a different story. Hungryroot’s AI analyzes these behaviors to pre-fill shopping carts with suitable items and provide complementary recipes.
This approach ensures a loyal customer base by offering a unique and highly differentiated experience.
Innovating with Technology
Hungryroot is constantly evolving its technological capabilities. Currently, they use AI to optimize shopping and meal planning, but they are also exploring Generative AI. This new technology aims to explain to customers in plain English why certain products were chosen for them, enhancing transparency and trust.
Hungryroot’s journey offers several lessons:
Strategic Focus: Target a specific customer segment that is underserved by the competition.
Deep Customer Understanding: Use both research and data analysis to comprehend customer motivations and behaviors.
Holistic User Experience: Craft an experience that goes beyond just selling a product, but also helps customers achieve their broader goals.
Unique Business Model: Create a business model that aligns with your value proposition and customer experience.
Innovative Use of Technology: Leverage technology not just for efficiency but to fundamentally re-imagine your industry.
By adopting these principles, businesses in any industry can learn from Hungryroot’s innovative approach to the online grocery market.
Source: Forbes
