For H-E-B's curbside pickup service, should we focus on faster order fulfillment or a wider selection of available products?

Introduction

For H-E-B's curbside pickup service, we're facing a critical trade-off between faster order fulfillment and a wider selection of available products. This decision will significantly impact customer satisfaction, operational efficiency, and our competitive position in the grocery market. I'll analyze this trade-off by examining key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking customer expectations for speed might be increasing. Could you share any recent customer feedback or satisfaction data related to our current fulfillment times?

Why it matters: Helps prioritize speed vs. selection based on customer preferences Expected answer: Mixed feedback, with a slight preference for faster fulfillment Impact on approach: Would lean towards prioritizing speed improvements

• Considering our business model, I'm curious about the profit margins on different product categories. Can you provide insights into how our product mix affects overall profitability?

Why it matters: Informs decision on which products to prioritize for wider selection Expected answer: Higher margins on fresh produce and prepared foods Impact on approach: Would focus on expanding selection in high-margin categories

• Looking at user behavior, I'm wondering about the average basket size for curbside pickup orders. How does it compare to in-store shopping?

Why it matters: Helps understand the potential impact of wider selection on order value Expected answer: Slightly higher average basket size for curbside pickup Impact on approach: Would explore ways to maintain or increase basket size while improving speed

• From a technical perspective, I'm thinking about our current inventory management system. How real-time is our stock information across stores?

Why it matters: Affects feasibility of expanding product selection without compromising accuracy Expected answer: Near real-time updates with some lag during peak hours Impact on approach: Would consider system upgrades to support wider selection

• Regarding resources, I'm curious about our current staffing levels for curbside pickup. Are we operating at capacity, or is there room for expansion?

Why it matters: Determines if we can improve speed without significant hiring Expected answer: Operating near capacity with some room for optimization Impact on approach: Would focus on process improvements before considering staffing increases