April 8, 2008
Peapod Helping Consumers Make Healthy Choices
The Peapod home delivery grocery service has upgraded its service in recent weeks to help consumers make wise nutritional choices based on a variety of dietary considerations.
Using its proprietary NutriFilter software, Peapod now does all the label reading for customers to make them aware of ingredients that may not fit with their nutritional plan.
“These days, almost everyone has some type of dietary restriction, whether it’s lower sodium, lower cholesterol or food allergies,” Elana Margolis, a spokesperson with Peapod, told the Daily Herald. “So we created our own software to do this.”
Consumers have been receptive to the system since it launched in mid-March with online usage having increased 30 percent since the filtering software became available.
The system works by going through all the products Peapod offers and highlighting those that meet the nutritional criteria input by consumers. Peapod customers can click on a variety of preset programs for gluten-free, peanut-free, low fat, Kosher or organic foods.
Shoppers also have the option of setting up criteria specific to their own needs based on a variety of preferences. These could include looking for ingredients such as fiber content.
Peapod is bullish on the new system. As Ms. Margolis put it, “We don’t believe there’s anything like our NutriFilter anywhere else.”
Discussion Questions: Has Peapod hit on a point of difference with its NutriFilter system that can help it expand its customer base? Will similar systems be common in retail stores as well as in delivery services such as Peapod in the near future?
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The answers to the questions are “Yes” and “Yes.” Yes, it’s a point of difference now and, if it proves popular, yes we’ll see some version of it in retail stores.
Answering a question that hasn’t been asked. Nothing new. Sometimes it works (ask any PC manufacturer), and sometimes it doesn’t (think Segway). Nutrifilter seems like yet another exercise in “who cares?.”
I’m reminded of the wonderful service provided by pharmacies in which they apprise shoppers of the various possible interactions between medications, and so can spot the origin of the Nutrifilter idea. But food is a different deal. Most of us eat what we like within limits, and being reminded of (not notified of) the bad stuff we like to ingest seems more intrusive than informative.
By all means, Peapod has hit on a great opportunity. I have always been disappointed in the online shopping sites I have seen for grocery stores. The big advantage of the “virtual world” is the very fact that it is virtual. This means that the presentation to each consumer can be customized to meet their needs, either by using shopping history or by asking them directly.
It can also be customized to meet their particular shopping needs. If today is a “quick stop,” the items can be limited to staples. If today is a “pantry day,” then a slow browse through all the categories can offer new experiences. Customers should be able to shape the type of experience they want.
Peapod is onto something, I just hope there is not some obscure software patent that will prevent others from providing similar services.
This nutritional database and filter is an excellent example of why online grocery ordering and delivery is a service business first and a product business second. I’ve long advocated home pantry management solutions as the ultimate manifestation of this phenomenon. With current and coming technology, there is no reason why shoppers could not access the same product database while shopping in stores–either through shelf-mounted scanner/kiosk devices, on smart shopping carts or using their mobile telephones. Come to think of it–isn’t Peapod owned by Ahold, which also owns Stop & Shop, which has been testing smart carts and mobile phone technology from Modiv Media? Maybe this all fits together somehow….
This technology solution could be a huge advantage for Peapod. Imagine how it could help the over 40 million Americans who are already diabetic or in the pre-diagnosis stage of this disease.
I’d love to use it at the store level to pre-screen all the products I buy with a sodium level filter! Now that would really save me some time at the supermarket! Imagine a list of new products and brands I could try with confidence. I wish I was in the Peapod geography. This article just inspired me to sign up for e-mail notification when they reach my area.
This program, like Safeway’s nutritional program for frequent shoppers, will help consumers online be better informed about their choices.
However, I see this program in a larger context of online shopping patterns, where we are approaching a state of more “perfect information” for buyers in every category. The impact will be a shift in demand patterns for goods, like the Long Tail. But perhaps other demand patterns may emerge which will reflect availability by niches, such as local availability of wheat-free products for allergy sufferers. Others won’t be sophisticated enough to know what’s available, or won’t have access to the level of health information or products. We will increasingly segment by sophistication, access and income.
The world is changing.
This type of information is essential for today’s consumers. The system is flexible in that consumers can create their own criteria or use existing nutrition categories. It’s convenient and makes ordering at home even better. Keeping the information up to date can be a challenge for Peapod, but is essential to keep it accurate.
This is truly a point of difference for Peapod and a great value to customers.
This article speaks to the essence of the web dynamic, supporting buyers vs. being a seller (we need to walk and chew gum on this cultural divide for sure)
– When you support buyers you try to address their pain points (understanding these pain points is why qualitative research or human intelligence will be as critical as data mining IMHO)
– People engage with the web as a problem solving channel, this tool is consistent with the web ethic, this relates to the design of a customer experience (when it’s done right it just works, but it is designed…yes it can be done.)
When you do something that speaks to that ethic you get responses like what we heard from Anne Howe, namely: “This article just inspired me to sign up for email notification when they reach my area.”
The byproduct of good design can potentially become word-of-mouth advocacy (the new advertising channel)–the stuff that leads to acquisition.
The web is fast becoming the first point of contact to solving problems–responding to changes in health state (either proactive or reacting) can be a real pain.
I will follow this as well – nice post – thanks, Anne.
Peapod has hit upon a notable point of difference and its sales increases show that it is working. It is much easier to implement a NutriFilter system online than it is in-store. As long as the system is accurate, it will be seen as a valuable addition to Peapod shoppers.
I am an avid online grocery shopper. In New York City where I live, I use Fresh Direct, and in Boston where I have a temporary apartment, I use Peapod. I love their new software.
Online has many disadvantages over offline. You can’t pick up and feel the thing that you are buying. Its huge advantage is, mostly, in convenience. But Peapod highlights other things technology can bring to the table, such as personalization services. When online gives you both more convenience and more information, that’s when you really start to see advantages over offline. Take the new Amazon Kindle–Amazon’s new eReader device. I can download books wirelessly to the device. The thing fits 200 books. And its storefront has all my Amazon information and is therefore able to recommend books. Sure, it’s not a paper book. But now it has so many advantages over a paper book, I carry it exclusively.
Anything that helps drive online grocery shopping is much appreciated since online grocers have such a hard time making any money. It’s unlikely that Peapod’s nutrition data will raise their sales by an amount that will drive profitability. But it’s probably worth trying all sorts of tactics. After 10? 15? years, Americans are still looking for the first large-scale profitable online grocer.
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The answers to the questions are “Yes” and “Yes.” Yes, it’s a point of difference now and, if it proves popular, yes we’ll see some version of it in retail stores.
Answering a question that hasn’t been asked. Nothing new. Sometimes it works (ask any PC manufacturer), and sometimes it doesn’t (think Segway). Nutrifilter seems like yet another exercise in “who cares?.”
I’m reminded of the wonderful service provided by pharmacies in which they apprise shoppers of the various possible interactions between medications, and so can spot the origin of the Nutrifilter idea. But food is a different deal. Most of us eat what we like within limits, and being reminded of (not notified of) the bad stuff we like to ingest seems more intrusive than informative.
By all means, Peapod has hit on a great opportunity. I have always been disappointed in the online shopping sites I have seen for grocery stores. The big advantage of the “virtual world” is the very fact that it is virtual. This means that the presentation to each consumer can be customized to meet their needs, either by using shopping history or by asking them directly.
It can also be customized to meet their particular shopping needs. If today is a “quick stop,” the items can be limited to staples. If today is a “pantry day,” then a slow browse through all the categories can offer new experiences. Customers should be able to shape the type of experience they want.
Peapod is onto something, I just hope there is not some obscure software patent that will prevent others from providing similar services.
This nutritional database and filter is an excellent example of why online grocery ordering and delivery is a service business first and a product business second. I’ve long advocated home pantry management solutions as the ultimate manifestation of this phenomenon. With current and coming technology, there is no reason why shoppers could not access the same product database while shopping in stores–either through shelf-mounted scanner/kiosk devices, on smart shopping carts or using their mobile telephones. Come to think of it–isn’t Peapod owned by Ahold, which also owns Stop & Shop, which has been testing smart carts and mobile phone technology from Modiv Media? Maybe this all fits together somehow….
This technology solution could be a huge advantage for Peapod. Imagine how it could help the over 40 million Americans who are already diabetic or in the pre-diagnosis stage of this disease.
I’d love to use it at the store level to pre-screen all the products I buy with a sodium level filter! Now that would really save me some time at the supermarket! Imagine a list of new products and brands I could try with confidence. I wish I was in the Peapod geography. This article just inspired me to sign up for e-mail notification when they reach my area.
This program, like Safeway’s nutritional program for frequent shoppers, will help consumers online be better informed about their choices.
However, I see this program in a larger context of online shopping patterns, where we are approaching a state of more “perfect information” for buyers in every category. The impact will be a shift in demand patterns for goods, like the Long Tail. But perhaps other demand patterns may emerge which will reflect availability by niches, such as local availability of wheat-free products for allergy sufferers. Others won’t be sophisticated enough to know what’s available, or won’t have access to the level of health information or products. We will increasingly segment by sophistication, access and income.
The world is changing.
This type of information is essential for today’s consumers. The system is flexible in that consumers can create their own criteria or use existing nutrition categories. It’s convenient and makes ordering at home even better. Keeping the information up to date can be a challenge for Peapod, but is essential to keep it accurate.
This is truly a point of difference for Peapod and a great value to customers.
This article speaks to the essence of the web dynamic, supporting buyers vs. being a seller (we need to walk and chew gum on this cultural divide for sure)
– When you support buyers you try to address their pain points (understanding these pain points is why qualitative research or human intelligence will be as critical as data mining IMHO)
– People engage with the web as a problem solving channel, this tool is consistent with the web ethic, this relates to the design of a customer experience (when it’s done right it just works, but it is designed…yes it can be done.)
When you do something that speaks to that ethic you get responses like what we heard from Anne Howe, namely: “This article just inspired me to sign up for email notification when they reach my area.”
The byproduct of good design can potentially become word-of-mouth advocacy (the new advertising channel)–the stuff that leads to acquisition.
The web is fast becoming the first point of contact to solving problems–responding to changes in health state (either proactive or reacting) can be a real pain.
I will follow this as well – nice post – thanks, Anne.
Peapod has hit upon a notable point of difference and its sales increases show that it is working. It is much easier to implement a NutriFilter system online than it is in-store. As long as the system is accurate, it will be seen as a valuable addition to Peapod shoppers.
I am an avid online grocery shopper. In New York City where I live, I use Fresh Direct, and in Boston where I have a temporary apartment, I use Peapod. I love their new software.
Online has many disadvantages over offline. You can’t pick up and feel the thing that you are buying. Its huge advantage is, mostly, in convenience. But Peapod highlights other things technology can bring to the table, such as personalization services. When online gives you both more convenience and more information, that’s when you really start to see advantages over offline. Take the new Amazon Kindle–Amazon’s new eReader device. I can download books wirelessly to the device. The thing fits 200 books. And its storefront has all my Amazon information and is therefore able to recommend books. Sure, it’s not a paper book. But now it has so many advantages over a paper book, I carry it exclusively.
Anything that helps drive online grocery shopping is much appreciated since online grocers have such a hard time making any money. It’s unlikely that Peapod’s nutrition data will raise their sales by an amount that will drive profitability. But it’s probably worth trying all sorts of tactics. After 10? 15? years, Americans are still looking for the first large-scale profitable online grocer.