Transforming Grocery Shopping With AI-Powered Personalization

Hungryroot News

Transforming Grocery Shopping With AI-Powered Personalization
AIArtificial IntelligencePersonalization
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In a world where personalized experiences are increasingly central to consumer satisfaction, Ben McKean has built Hungryroot into a leader in personalized grocery.

into a leader in the personalized grocery service industry. McKean, who founded the company in 2015, shares his journey from a traditional packaged food business to a cutting-edge, AI-driven platform that tailors grocery shopping to customers’ goals and preferences. In this interview, McKean discusses the pivotal moments that shaped Hungryroot ’s success, the role of AI in revolutionizing food delivery, and his advice for entrepreneurs looking to disrupt industries.

There were two reasons for this shift. First, convenience. People don’t want to buy yogurt from one website, ice cream from another, and fresh produce from yet another. They want a one-stop shop. Second, order value. Delivering food directly to consumers is expensive, and larger orders improve the economics for both the company and the customer.

Hungryroot, on the other hand, has always focused on demand-side innovation. We aim to create the best possible shopping experience for customers, while outsourcing as much of the supply side as possible. This approach took a few years to refine. Initially, in 2017, we were producing all our food ourselves. At the time, we offered about 30 SKUs, ranging from chopped produce to sauces to baked goods. Managing such a diverse supply chain was overly complex and inefficient.

In 2019, we built an operations research algorithm, a subfield of AI, which allowed us to encode human logic and hard constraints into our system. For example, if an item isn’t in stock, the algorithm knows not to recommend it. If a customer indicates they’re vegan, it ensures non-vegan products aren’t suggested, no matter how much the system might think they’d enjoy them.

SmartCart encourages customer engagement, such as reviewing and adjusting their carts or rating items. This feedback is invaluable for improving the system. The branding has fostered positive reactions and engagement. For example, in our Facebook group of over 30,000 customers, people now discuss the algorithm’s improvements. This focus on benefits, rather than technical jargon, has resonated well.Our COVID story is unique.

Despite all this planning, 70% of what we buy at the grocery store is the same as the week before. The challenge of meal planning leads us to fall back on what’s familiar. However, 30% of what we buy ends up being thrown out because it spoils before we can use it. And yet, 82% of Americans are metabolically unhealthy, meaning our food choices are often harming our health. While not everyone fits this mold, the majority of Americans struggle to make good food choices. AI can address most of this.

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