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PT.9 Case Study Analysis

Blue Apron is losing customers and needs to understand customer behavior better to improve retention. They use predictive analytics models that consider customer order history, recipe preferences, and seasonality to forecast demand and avoid waste. The benefits of gathering this data include improving the user experience, recognizing changing tastes over time, and optimizing costs through better demand predictions.

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Paula de Torres
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65 views7 pages

PT.9 Case Study Analysis

Blue Apron is losing customers and needs to understand customer behavior better to improve retention. They use predictive analytics models that consider customer order history, recipe preferences, and seasonality to forecast demand and avoid waste. The benefits of gathering this data include improving the user experience, recognizing changing tastes over time, and optimizing costs through better demand predictions.

Uploaded by

Paula de Torres
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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University of Batangas AC3A

PT.9
Case Study
Analysis
Cornejo, David
De Torres, Paula Marie
Flores, Bernadette
Pungtan, Alexandra
Overview of the case
1

Table of 2
The business problem

Contents 3 The data needed

The model/s appropriate for the case


4 (descriptive, predictive, or descriptive)

The benefits to be gained from the data


5
gathered
Overview of the case

Your facilitators
The decline in its customer base and net sales was in
line with expectations and reflects a return to a more
normalized environment in which customers can go out
to eat more freely. They been monitoring customer
behavior by geographic region throughout the pandemic.
Meal kit company Blue Apron has lost some of its
steam in customer retention, losing 21,000 customers in
compared to the same period last year, but says other
key performance metrics including average order value
and average revenue per customer are strong.For meal
kit delivery service Blue Apron, understanding customer
behavior and preferences is vitally important to its
success. Each week, the company presents subscribers
with a fixed menu of meals available for purchase
The On a quarterly basis, customers declined by
18,000. This was a turn of events for the meal kit
business provider which notched up its customer count by
15,000 in 2021 compared to the same period last
problem year. Their meal kit companies face numerous
problems because costs a lot for companies to
prepare, package and ship fresh ingredients, so
meal prices are high. And once kits arrive,
subscribers still have to put the ingredients
together. The company are struggling with the
difficult economics of the meal kit business. They
ares losing customers and new ones aren't making
up the loss. That's a problem when one of the risk
factors for the business.
Data needed

The data that blue apron needed are the following:

Customer satisfaction
Customer retention
Average order value
Financial statements
The model/s appropriate KEEP
STOP START

for the case GOING

Each week, the company presents subscribers with a fixed menu of meals available for
purchase and employs predictive analytics to forecast demand, with the aim of using data to
avoid product spoilage and fulfill orders. To arrive at these predictions, Blue Apron uses
algorithms that take several variables into account, which typically fall into three categories:
customer-related features, recipe-related features, and seasonality features. Customer-
related features describe historical data that depicts a given user’s order frequency, while
recipe-related features focus on a subscriber’s past recipe preferences, allowing the company
to infer which upcoming meals they’re likely to order. In the case of seasonality features,
purchasing patterns are examined to determine when order rates may be higher or lower,
depending on the time of year.
Benefits STOP START
KEEP
GOING

Through the data gathered, Blue Apron has improved its user experience,
identified how subscriber tastes change over time, and recognized how shifting
preferences are impacted by recipe offerings. They invested in significant
amounts of resources and time into trying to understand the needs and
preferences of the customers and improving offerings and customer experience.
Also as their business produce meal kit, the data will help them create estimates
of future revenue, waste less inventory and optimize staffing costs by knowing
earlier how many personnel will be needed to ship merchandise.

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