See How This Brand Reached Their Yearly Subscription Revenue Goal in 90 Days
Percent of new site visitors who sign up for a subscription
Days it took CBDistillery to reach their yearly subscription revenue goal
Their mission is to provide easy access to wellness products and educate consumers about the benefits of hemp-derived supplements. The subscription model is an ideal match for the needs of their customers, who get the best results when they use the product daily.
A Natural Fit: CBDistillery and Subscriptions
With a competitive marketplace, CBDistillery faced several challenges, including rising customer acquisition costs and limited internal resources. Not only this, the company desired an innovative solution that would help them achieve their mission of maximizing the health benefits of CBD for their customers. Here are CBDistillery’s challenges and how subscriptions solved them.
Challenge: Maximize Customer Health Benefits
To get the most health benefits out of CBD, users should stick to a daily regime. CBDistillery turned to subscriptions to make taking CBD supplements hassle-free.
“It was a natural fit for us to provide something that took the entire thought process out of having to order products on a 30- or 60-day basis when we were telling them to use the products every single day,” says CBDistillery VP of Marketing Ellese Symons.
How to Implement a Superior Subscription Program, Feat. CBDistellery
Challenge: Improving CLV:CAC
Like most eCommerce companies, CBDistillery’s customer acquisition cost (CAC) has ballooned in the last several years so it was important to implement a subscription program that cultivated customer loyalty. They accomplished this by offering valuable incentives, giving subscribers complete control over their orders, and enabling shoppers to add additional items to their orders.
CBDistillery offers a generous 20% discount and free shipping on every subscription order, plus 25% off every third order.
“We can justify offering that because we’re teaching customers how to be a healthy CBD user,” Ellese says. “It makes it worth it for us in the long run, because we see repeat business over and over again.”
To encourage their subscribers to stay with them, CBDistillery uses Ordergroove’s robust retention tools. CBDistillery subscribers have complete control over their orders. They can easily pause, skip, or modify the frequency of their subscription.
“It’s been huge across the board for establishing loyalty for all of our customers. With a subscription program, we’ve been able to see a better return.”
CBDistillery is also finding success with personalized outreach to customers who cancel their subscriptions. After a cancelation, churned customers are targeted with automated win-back campaigns. The CBDistillery team even conducts one-on-one phone interviews with lapsed customers to learn why they churned and how they can improve their product offering.
CBDistillery’s efforts have resulted in an 89% retention rate.
“It’s been huge across the board for establishing loyalty for all of our customers,” Ellese says. “With a subscription program, we’ve been able to see a better return.”
To increase average order value, CBDistillery uses Instant Upsell, a feature on Ordergroove’s platform that encourages customers to add products to their subscription order. As a result, the company’s average order value has also increased.
Challenge: Limited Resources
CBDistillery was struggling to stay top of mind with their customers. Their team was spending countless hours drafting and sending emails to shoppers to remind them to restock their supplements.
“We were the ones trying to determine and message our customers about when they should be placing their next order,” Ellese says. “And one of the brilliant things about subscriptions is the power is now in the customer’s hands. They’re able to set the cadence that is the most appropriate for them or make changes to that subscription.”
By removing reorder friction, CBDistillery has been able to reallocate resources to acquiring new customers instead of retention. Without subscriptions, Ellese says CBDistillery’s retention would have remained “stagnant.”
Before they implemented a subscription program, CBDistillery saw an average 60-day return rate — two months between repeat customers’ orders. Now, it’s down to 40 days.