Overview
As the Product Owner for Pali Kitchen on Just Eat for Business, I was tasked with investigating and resolving a 25% reduction in our corporate catering orders over the past three months. This decline impacted our daily office meals and large event catering services. This case study outlines the steps I took to analyze the problem, collaborate with key teams, and implement a successful strategy to recover our business orders.
Problem Definition
Problem Statement:
Over the past quarter, Pali Kitchen saw a 25% decline in business orders on the Just Eat for Business platform, dropping from 5,000/month to 3,750/month. The drop was especially noticeable in corporate catering, which affected both daily office meals and large event orders. As the product owner, I needed to identify the underlying causes of this reduction and take decisive action to restore order volume.
To validate the extent and specifics of the problem, I segmented the data along the following lines:
- Time Frame: Analyzed trends over the past three months to understand if the decline was a gradual process or a sudden drop.
- Geographical Segmentation: Compared performance across different cities, with a focus on Pali and surrounding regions.
- Industry Segmentation: Analyzed the impact on different business types, including large corporations and SMEs.
- Order Type Segmentation: Identified whether daily office meals or large event catering was most affected.
Data Segmentation and Analysis
Key Metrics Analyzed:
- Business Orders Decline: From 5,000/month to 3,750/month, a 25% reduction in corporate orders.
- Geographical Breakdown: The largest decline was seen in the Pali region (40% reduction), while other regions experienced smaller declines (10%).
- Industry-Specific Trends: Tech companies experienced a 35% drop in orders, while sectors like retail and finance showed only a 5% decline.
- Order Type Breakdown: Large event catering orders dropped by 15%, while daily office meals saw a 30% reduction.
Identifying Internal Factors
As the product owner, I collaborated with various internal teams to identify potential internal factors contributing to the decline:
- Service Quality Issues:
- Complaints about late deliveries increased, especially in the Pali region, with 18% of business clients reporting delays over the last two months.
- Food quality issues were raised, particularly for customized orders, which were popular among clients in tech and finance.
- Menu & Vendor Changes:
- Several popular vendors offering healthy, customizable meals were removed from the menu, which impacted demand from health-conscious clients.
- The loss of these popular menu items led to dissatisfaction, reducing the likelihood of repeat orders.
- Platform Usability:
- Recent updates to the Just Eat for Business app introduced usability challenges, particularly with bulk ordering and large event bookings.
- Clients found it difficult to place orders quickly, especially when arranging recurring office meals or large event catering.
- Pricing Adjustments:
- New delivery fees increased costs by 10%, which had a particularly negative impact on small-to-medium businesses with lower order volumes.
Identifying External Factors
In addition to internal factors, I also considered potential external influences:
- Competitor Activity:
- Competitors introduced lower delivery charges and more flexible options for corporate clients, which made Pali Kitchen less attractive in comparison.
- Some competitors also offered better-tailored menus and more customizable catering options.
- Economic Conditions:
- Economic slowdowns and budget cuts in several sectors, especially in tech, led to a reduction in corporate spending on catering services.
- Remote Work Trends:
- The rise of remote and hybrid work models led many businesses to cancel office meal subscriptions and shift towards individual meal solutions.
- The demand for large-scale catering decreased as employees worked from home or in hybrid environments.
- Local Events:
- Local events in Pali reduced the demand for large corporate events, further impacting the order volume during this period.
Hypotheses and Experimentation
With the data analyzed, I developed the following hypotheses:
- Hypothesis 1: The rise in remote work has decreased demand for office meals and large-scale corporate catering.
- Test: We conducted surveys with corporate clients to understand how their work structures had changed and how that affected their ordering habits.
- Hypothesis 2: Competitors are offering better pricing and more tailored services, resulting in a loss of corporate clients.
- Test: I conducted a competitive analysis to compare Pali Kitchen’s pricing, service offerings, and value-added services against our competitors.
- Hypothesis 3: Service quality issues, such as late deliveries and poor food customization options, are contributing to the reduction in orders.
- Test: Feedback was collected from clients who reported issues with deliveries or food quality, and customer satisfaction scores were reviewed.
Mitigation Plan
After identifying the root causes, I developed and implemented a mitigation plan with both short-term and long-term strategies:
1. Short-Term Actions:
- Promotions for Corporate Clients: I launched a promotional campaign offering 15% off for corporate clients who placed bulk orders or subscribed to recurring office meals for the next quarter.
- Menu & Vendor Updates: I reintroduced popular healthy and dietary-specific menu options, catering to the needs of tech and finance clients.
- Platform Fixes: I worked closely with the engineering team to fix the usability issues in the Just Eat for Business app, improving the bulk ordering and recurring order functionalities.
- Customer Engagement: I personally reached out to key clients, particularly those who had reduced their orders, to understand their pain points and offer personalized solutions.
2. Long-Term Strategies:
- Pricing Adjustments: I introduced a tiered delivery fee model, offering better rates for larger orders and subscription-based services to attract smaller businesses.
- Expanded Menu Options: I worked with new vendors to offer a wider variety of meal options, ensuring flexibility for businesses with different dietary needs.
- Improved Customer Support: I helped create a dedicated corporate support team to better handle the unique needs of business clients.
- Targeted Marketing Campaigns: I initiated a marketing campaign focused on highlighting our competitive pricing, improved service quality, and flexible menu offerings to attract new business clients.
Results and Impact
After implementing these strategies, the following results were observed:
- Increased Orders: Corporate orders increased by 18% within two months of launching the promotions and menu updates.
- Client Retention: Client retention rates improved by 15% as we re-engaged with business clients and addressed their concerns.
- Satisfaction Scores: Complaints about late deliveries and food quality dropped by 22%, resulting in higher customer satisfaction.
- Competitive Edge: The revised pricing model made Pali Kitchen more attractive, leading to a 10% increase in client acquisition.
Conclusion
By applying a structured RCA approach, I identified both internal and external factors contributing to the decline in business orders for Pali Kitchen on Just Eat for Business. By addressing service quality, adjusting pricing, optimizing the menu, and improving platform functionality, I successfully helped reverse the trend and regain our business client base. This process demonstrated my ability as a Product Owner to drive product improvements, collaborate cross-functionally, and make data-driven decisions that lead to tangible business outcomes.
Reflections
This project showcases my skills in:
- Conducting thorough root cause analyses to identify issues.
- Collaborating with cross-functional teams (marketing, engineering, operations) to implement effective solutions.
- Leveraging data to make strategic decisions that improve customer satisfaction and business performance.