Food & Beverage
Subscription Services: How Graze Used Magento to Test a New Market
Graze had a tasty idea. They wanted to launch subscription services.
Since 2008, Graze has used technology to disrupt the snack and food industry and become the world’s #1 healthy snack brand. Their mission is to make healthy food more exciting and accessible to more people. Most of its $100 million business is an online subscription service delivering healthy snacks throughout the United States and the United Kingdom. As their subscription services business grew, the company found that customers wanted to try specific snacks before committing to any subscription services. Based on actual customer sales data and analytics insights, Graze realized there was a business opportunity between their successful subscription services model and a traditional retail option. The idea for a Graze Shop to sell food online was born.
To launch this project, Graze conducted extensive market research, analyzing the benefits of Shopify, Demandware, OrderDynamics, and other eCommerce platforms, before choosing Magento Commerce and Magento Solution Partner, Inviqa. A technology company at heart, Graze built their entire subscription services business in-house, so they planned to work together to launch a targeted online shop to test the business model expansion to sell food online.
When we looked at what we wanted to achieve, it was clear that using Magento Commerce would allow us to test, learn, and iterate without betting the business.Mark Wood
Magento gave Graze all the ingredients they needed to sell food online.
Graze realized there was great value in using Magento instead of trying to build and maintain everything themselves. Having a PHP development team in-house, they loved that Magento spoke their language, and knew that while they would benefit from our external innovation, they could still have control over the code. The Magento eCommerce platform enabled Graze to test and iterate the project without risking their core business.
To launch the subscription services project quickly, the Graze Shop was built primarily using out-of-the-box Magento features and functionality. Graze leveraged the responsive design Luma theme to create a seamless omnichannel online shopping experience. They also created a custom integration that allowed customers to seamlessly login and checkout using existing Graze credentials.
The Magento Admin tools gave the Graze team full control over all aspects of the site including management of products, merchandising, and site content. This made it easier to add configurable products, and track inventory levels. Using the API, the team was able to build an integration between Magento and their in-house pick-and-pack system. Working with web hosting partner Elastera, Graze easily deployed their subscription services platform in the cloud.
With new subscription services, orders are up. Costs are down.
The results were clear: as a result of website optimization, the overall site performance has exceeded all Graze expectations. The Graze Shop has proven the viability of the direct online order business model. Data shows that the Graze Shop appeals to a different demographic than customers using their subscription services model, which means it is driving incremental revenue. Graze also confirmed their thesis that they could effectively integrate a third-party eCommerce platform into their core business.
The overall Magento Commerce approach to software development was a good fit with the Graze culture and allows them to focus on their core competencies—using technology to sell food online and make healthy food exciting. The new eCommerce website generated £3M in incremental sales revenue in the first 12 months. The number of transactions increased from an average of 100 in January 2016 to 18,700 in January 2017, and the average conversion rate increased by 429% during the same period.
This experience taught us that we can be an innovative technology company, but we don’t have to reinvent the wheel.Mark Wood