Online grocer Farmstead says 28% of its inventory is now Refill & Save enabled as more and more grocery brands are signing on for the program in order to increase customer retention and gain valuable insights into shopper behavior.
Among the new brands participating in Refill & Save are Niman Ranch, Little Secrets, Tillamook Cheese and True Story Foods and local Bay-Area brands Alexandre Farms, St. Benoit Creamery, and Santa Cruz Pasta Factory.
Refill & Save now accounts for 52% of the company’s revenue. Participating brands contribute on a per-unit cost, so Farmstead earns every time a customer chooses their Refill & Save item - another way Farmstead is able to keep its prices low while driving brand loyalty.
Farmstead’s Refill & Save provides customers with recurring orders with significant discounts on certain staples, including milk, eggs, fresh fruit, fresh vegetables and bread. Farmstead automatically queues up customers’ recurring weekly orders - customers can then add or delete any items for the week, or even cancel a weekly order entirely, up to three hours before their delivery window without penalties. The weekly order minimum for Refill & Save orders is $20.
The service is built on the premise that most households buy many of the same things every time they grocery shop. Providing user-centric digital products to support that behavior helps Farmstead predict demand, reducing its costs and improving efficiency, in turn enabling the company to reduce prices on certain staples while still making the business profitable.
“Customers love the convenience and the savings they get from Farmstead’s Refill & Save offering, and brands love the stickiness and the insights,” said Farmstead co-founder and CEO Pradeep Elankumaran. “The more brands we add, the more value customers get out of it – it’s an important area of focus for Farmstead.”
Farmstead exploded into the online grocery scene in 2016 and has shaken up the space in a big way. With an initial focus on locally sourced produce, Farmstead worked to make fresh food available to all at reasonable prices. It partnered with national brands such as Kraft to expand inventory, and it developed technology and services for making online grocery buying cheaper than going to the store. 70% of Farmstead customers are mid-market customers who might otherwise shop at local supermarkets such as Safeway, Kroger and Trader Joe’s.