Farmstead’s Machine Learning Tech Accurately Predicts Customer Demand
Farmstead has gone live with its Smart Shopping List to predict what customers need based on multiple data-driven factors including weekly shopping history, buying signals and what’s already in their cart. The online grocer’s latest innovation leverages machine-learning technology to predict customer demand and help shoppers seamlessly build their weekly shopping list quickly and easily.
“One of the biggest challenges to buying groceries online is to build your shopping cart rapidly,” said Farmstead co-founder, CEO and RIS’ mover and shaker Pradeep Elankumaran. “Since there are no physical aisles to walk through like a traditional supermarket, and only so much scrolling one can take, it’s a true challenge to help customers find the right products at the right time while also suggesting new ones they’ll love in the few minutes they spend each week tapping buttons online.”
Farmstead’s Smart Shopping List gives customers a better option – instead of just aisle-by-aisle shopping, it dynamically generates an endless list of heavily personalized products that they can scroll through. These products are ranked by machine-learning algorithms based on customers’ shopping behavior and wellness preferences, along with the collective behavior of other customers who buy similar products.
While other online grocers make recommendations based on purchase history or brand sponsorships, Farmstead algorithmically considers complex factors such as day of the week and seasonality (for example: recommend heavy cream during Thanksgiving), compatible products (show the cream cheese you normally buy when you buy bagels) and also programmatically surface seasonal products (fresh local strawberries in the summer).
Farmstead’s Smart Shopping List gets smarter and more personalized every time a customer uses it. In early testing, Farmstead found that more than 40% of customers choose to shop via Smart Shopping List when presented with the option, and when they did they were 3.5 times more likely to add suggested items to their list.
Smart Shopping List is available now to existing Farmstead customers. New customers will be presented with the Smart Shopping List option after they have placed their first order with Farmstead, giving the software the chance to learn their unique preferences.
In addition, Farmstead recently announced a program called Refill & Save that lets customers set up weekly subscriptions for their staples, while also making grocery delivery cheaper than going to the supermarket.
“Features like Refill & Save and Smart Shopping List make online grocery buying less overwhelming and more appealing to the average family,” said Elankumaran. “Right now, online grocery represents only about 8% of overall grocery buying. We think that number will double by the end of 2019. The more convenient and less expensive we can make it, the better for the vast majority of mid-market shoppers who are tentatively exploring online options.”