HelloFresh deepens customer engagement and boosts retention with smart personalization

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HelloFresh case study header image
Double-digit growth in revenue per customer
from personalization strategies designed to educate customers on how to better manage their deliveries, plan ahead for their weekly menu and skip boxes as and when desired.
Boosted Retention Rates
Achieved by highlighting cancellation alternatives available to customers who wish to modify (e.g. reduce) their delivery frequency.

Introduction

Delivering almost 46.5 million DIY meals to 1.84 million active customers worldwide in the three-month period between July 1, 2018 and September 30, 2018, HelloFresh is the global market leader across 11 countries. In helping so many individuals discover their inner chef, HelloFresh strives to nurture a high-contact relationship with every customer, allowing them to browse over 10,000 recipes, choose meal preferences, and plan delivery schedules. These weekly check-ins require an automated yet highly personalized approach, which is what led them to Dynamic Yield’s platform. With Dynamic Yield, HelloFresh launched numerous campaigns aimed at increasing customer loyalty with more individualized experiences at every touchpoint, ultimately leading to significant increases in both conversion rate and revenue per customer.
Hellofresh logo
“At HelloFresh, experimentation is at the core of everything we do and Dynamic Yield has enabled us to truly optimize online customer journeys. Whether we’re meeting a user for the first time or engaging with loyal subscribers, Dynamic Yield provides us with the tools we need to deliver the freshest possible experiences.”
Eleanna Smpokou, Senior Product Performance Manager
The Challenge section thumbnail

The Challenge

HelloFresh’s subscription-based model can be tailored to each customer’s needs by frequent and proactive interaction with the service, as customers have the option to choose their preferred meals for each week’s delivery, or skip a box on weeks when they are away or simply don’t want to receive a delivery. It is crucial to make customers aware of these flexibility aspects when it comes to plan/delivery management. Further, technical performance issues that arise during the process pose higher risks, since any negative interaction can end with a canceled subscription.

Considering all of the above, HelloFresh set out to address the following challenges:

  • Incorporate a personalization platform that conforms with their existing ecosystem and targeting logic

  • Execute complex experiences without compromising the technical performance of service, especially on mobile  devices

  • Reduce the tendency of customers to cancel their  subscription due to lack of awareness for other, more convenient options

  • Increase customer loyalty and the recurrence of box  delivery per every subscription

Execution

Incorporate HelloFresh’s proprietary unique identifier to target registered customers across any device
Every existing customer must engage with HelloFresh while logged into their account using the unique identifier assigned to them upon registration, whether via the website, mobile browser or app. Therefore, the first priority was to align Dynamic Yield’s account targeting capabilities with the internal user identification logic at HelloFresh.

To achieve this, HelloFresh leveraged Dynamic Yield’s unique “Evaluator” capability, allowing them to code their own custom targeting condition to reach visitors. HelloFresh’s Evaluator, depicted below, targets customers who have already been identified on any one of their devices. This guarantees visitors will receive the same experience regardless of browser or device used:
Delivered personalized experiences using over 160 micro-segments
Manage limited-capacity promotions by smartly tagging customers
HelloFresh promotions are both limited in capacity and time – once one of these limits is met, HelloFresh cannot admit more customers into the promotion. However, once a customer manages to enter the test, promotional content is continued to be served to them. In order to automate this logic and reduce over-messaging, HelloFresh leverages Dynamic Yield’s dynamic Events, effectively tagging each customer who successfully received the promotion and thereby dividing their traffic into customers included in and excluded from the promotion, and targeting them accordingly.
Created segment-specific coupons
Customize the Dynamic Yield desktop and mobile code in order to pre-assign users to specific variations
In recognizing each additional second of load time which translates into a 7% drop in mobile conversion rates, HelloFresh follows strict guidelines when working with 3rd party companies. In customizing Dynamic Yield’s implementation, HelloFresh is able to execute all computations for the experiments designed to render during the customer’s journey in the background. This way, once a customer arrives at the relevant page, the personalized experience is already fully loaded, without any additional delay or impact on page performance.
Emphasized product reviews to engage idle visitors
Increased loyalty by educating customers about “skip week” option
Customers occasionally have to skip a meal; after all, fresh ingredients remain fresh for a limited time. By analyzing online customer behavior, HelloFresh observed many subscribers were unaware of the “skip delivery” option, often resorting to unnecessary cancellations. In order to educate customers and deflect early cancellations, HelloFresh targeted new customers with experiences emphasizing the alternative option at the point where the customer entered the cancellation funnel. In doing so, the cancellation rate, more customers extended their subscription past the first box delivery, and the average revenue per customer saw a double-digit increase.
Further educate customers to plan weeks ahead of time
HelloFresh enables customers to plan meals weeks ahead of time – in fact, available menus and meal options in the US can be selected up to six weeks in advance! Upon observing, customers were unaware of this convenient option, HelloFresh leveraged Dynamic Yield to target customers not actively taking advantage of these early planning features. In doing so, HelloFresh saw a significant increase in boxes being shipped out to customers, as well as an increase in revenue per customer.
Increased basket value on checkout pages

The Key Takeaway

Companies are often limited by the rigidity of solutions that come with their own set of manuals and instructions. Adopting a flexible platform – one that allows teams to customize deployments when and where they need it most – is, therefore, critical to the business. In recognizing this, HelloFresh secured a platform that consistently allows them to realize their personalization initiatives within the constraints of their technical ecosystem, driving double-digit growth with a better user experience across all of their digital customer touchpoints.

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