growth companies

Lean Wednesday Tip: Mitigating High Growth Challenges

“When you have a high growth atmosphere there are sure to be inefficiencies that start creeping up into operational processes. Effective leaders ensure value is maintained and/or optimized instead of lost, they create efficient workflows and make decisions by fact as a way to manage the increased challenges brought on by high growth, and don’t stray away from the profitable target customer.”

Paid Tier Subscriptions based on consumer cooking levels can drive growth for Cooking Delivery Services

Cooking delivery services offer customers the convenience and adventure of trying new meals right at home. However, the offerings are very similar amongst all mayor players like Blue Apron, Plated and Marley Spoon. Fresh packaged ingredients, serving plans and delicious recipes is the main offering package. Blue Apron offers a wine subscription delivery plan and suggests wine per a customer’s meal choice which optimizes its value to customers.

However, there is an under-valued opportunity that I believe will really drive growth for these companies. By developing targeted tier paid subscriptions based on consumer cooking levels, lifestyle (fitness, vegan, et cetera), meal preparation time, dish type and ingredients will help them lure in non-customers and increase revenue.

For example, lets say a cooking delivery service wanted to target people who hate to cook or don’t have time to cook. They could offer a beginner paid subscription based on the consumer cooking capabilities with easy to follow educational video instructions, meal prep time categories, dish types, and lifestyle categories with upgrade options to intermediate, advanced and expert level cooking subscriptions. They could further optimize this by partnering with grocery stores and integrating a rewards system for users who complete and learn cooking skills (badges, coupons, et cetera).

This example demonstrates how understanding the non-customer can help companies realize common value factors between current customers and non-customers. By personalizing the cooking offering customers would be able to choose their preferred prep time, dish type (breakfast, lunch, dinner, et cetera) and lifestyle category, in turn, increasing overall satisfaction and value to the consumer.