Transforming Inspiration into Sales

As the world’s fifth largest dairy company and the single largest supplier of organic dairy products globally, Arla is truly creating the future of dairy for all of us, leading the agenda for a healthy, natural and responsible dairy industry.

Tracing back to the 1880s when dairy farmers in Denmark and Sweden joined forces in cooperatives, Arla has transformed and evolved into a massive, global company with well-known brands such as Lurpak and Castello and 19,000 employees—still as a cooperative but with a strong ambition to be #1 digital FMCG.

To deliver this seemingly simple button, Arla and Valtech strongly focused on the customer experience, particularly with the flow of purchase. Together, we found the answers through countless deliberations and questions such as "How do we integrate with the retailer?", "How do we make it clear when the customer is at Arla’s or the retailer’s site?" and "How do we create a scalable concept?"

On top of that, we also built a matching engine to ensure the best possible match between the ingredients in the recipes and the groceries at the retailer. This ensures a good experience when the groceries are delivered as well.

It may sound simple, but consider these questions: How many slices do you get from a lemon? How many kilograms are in a tablespoon of sugar?
These are critical questions when comparing old recipes based on slices and tablespoons with the data structure used at retailers.

Arla adapted all their recipes so the matching engine can compare it to the data Valtech registered from the retailer—leaving the consumers with only one lemon in their basket, even though they’ve selected three recipes containing a slice of lemon.

Within months of the launch, with no advertising or communications done on the brand new solution, consumers took it upon themselves to welcome this new opportunity. Accordingly, Arla has seen conversion rates reaching 0.1% of the total traffic. With 25 million visits per year, that’s an impressive number already. However, Arla expects this number to go even higher once their communications and advertising efforts are set into play.

The expectation is to reach 0.5% of visitors within a year of going live. In converted baskets, that would result in 125,000 purchased baskets with an expected average value of +25 euros. That’s a nice value added to the connected retailers as well.