June 11, 2021

Series A to Series B in less than 6 months through data

  • Industry D2C
  • Location Manchester, UK
  • Funding Round Series B
  • Data Stack kleene, Snowflake, Tableau
The Modern Milkman Case Study | kleene.ai

The Modern Milkman rapidly scaled, growing to 200K customers in less than three years, generating vast amounts of data. By March 2020, customer acquisition was 18 months ahead of forecast and the business was profitable, but the data strategy wasn’t working. An external consultant was hired to provide dashboards to visualise the data, but with the metrics ever changing in a fast growth scale up, they soon became redundant and were unable to provide a long term solution. TMM developed a new data strategy to access their data and utilise it to build a data first business.

Challenge

Creating a single version of the truth.

Solution

Migrating to a cloud data warehouse with the adoption of an all in one ELT tool.

Outcome  

Gaining investor trust and securing Series B funding as a result of data architecture.

Results 

  • Creation of a data driven environment

Data is at the forefront of all decision making at The Modern Milkman. With a strong belief in data democratisation and a desire to prevent data silos, TMM chose kleene as part of their data stack to gain insight and evolve the business. The data surfaced through kleene empowers the team to answer crucial questions and develop the product. 

“Data doesn’t usually permeate the C suite, yet it should. For us to build a business that was going to work, we had to invest in data. We’re breaking the data glass ceiling – as a result of kleene, we’re in a position with our data where everyone can be an analyst, no matter their role in the business.”

  • Gaining time and freeing resources 

TMM were looking to build a data infrastructure that allowed them to access the insight they needed, in order to drive value in the business, without spending hours in spreadsheets and SQL servers, or building pipelines. The team required a tool to bridge the gap between hiring an engineer. With limited resources, hiring an engineer wasn’t possible, so they required a tool to bridge the gap.

“As CIO, I wanted to be in data all the time, but you still have to have time to do other things. Looking at other ELT tools, I could see that they weren’t going to save me any time. I would have spent time patching over them, as they’re tools for engineers, not analysts and we weren’t at the stage of hiring engineers. We couldn’t have developed our metrics, or cohorts, or got Snowflake shares to VCs, if I was spending all my time in different tools just to access the data.

  • Speed to insight

In the summer of 2020 when TMM sought to raise money for Series A, many conversations focused on their cohorts. Computing cohorts from a SQL Server required five different views to run sequentially and took over an hour to complete, resulting in dated data. By introducing kleene + Snowflake, running a cohort takes 5 seconds, rather than an hour. 

“The volume of customers on the platform meant that exercises to see meaningful data could only be run once a day with our previous data infrastructure. Getting hold of fresh data quickly and simply, that’s fresh and up to date is vital. In a scale up, the metrics are ever changing.”

  • Evolving data to understand the business

The CFO needed granular data in order to build more accurate forecasts, whilst the CIO wanted to be able to bifurcate data to understand the value of different channels, the true cost of customer contact, predictive modelling and product development roadmaps. This has been achieved with kleene.

“I want to evolve data all the time. In order to do so, you need to have all of your data in one accessible place. By doing so, we can uncover where the pain points are and share that data with the teams across the business – customer success, product managers and marketing can then utilise that data.”

  • Securing series B funding through data

Despite securing series A funding worth £5million in January 2021, The Modern Milkman raised Series B in June 2021, as a result of their data strategy. Using Snowflake Shares, the team was able to present their cohorts to VCs and let the facts speak for themselves. 

“When I spoke to investors and gave them access to our Snowflake Shares, they couldn’t believe the data architecture we had in place. Being able to provide the cohorts directly in our warehouse said a lot about our data literacy.”

The Modern Milkman Testimonial

“I found you guys and it was a bit of a godsend – exactly what I was looking for. It’s a great tool and more people should be using it. By working on building it yourself, you’re not saving money, you’re spending time, and it’s diminishing returns. We first went down the consultancy route and had dashboards built directly from our transactional database, but soon realised that visualisation wasn’t the answer in a scaling business – within three months, they were redundant as our metrics had evolved. If we hadn’t been on top of data or been willing to invest in data, we wouldn’t be in the position we’re in now. People, particularly investors, are receptive to data.”
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