As new service & business models slowly brew in the food service industry, in spring 2021 a category leader wanted to explore the potential of a monthly subscription model.
We were tasked to find out what it would take to make a subscription desirable to customers and whether it is possible to use the model to increase customer lifetime value and generate revenue predictability, without risking profitability.
A small but diverse team was built to approach the innovation challenge in a swift sprint mode. Over 6 weeks, a large number of stakeholders were interviewed, extensive customer co-creation was conducted and sophisticated quantitative methods were applied to understand subscription price sensitivity and the profit implications of alternate service models.
In short succession, we were able to generate a thorough understanding of the desirability of the subscription service model and the viability of the underlying business model. These proprietary insights are being put to use in our food service client's long-term business development – next the model will be further tested in the real world in the MVP phase.