How KIND Snacks Added Recurring Revenue to the Menu
Whether it’s in Whole Foods, on Delta Flights, inside Instagram, or at your local bodega, consumers won’t have to look too hard to find KIND Snacks’ distinctive multi-colored logo across the nation. Since the company launched in 2004, it’s sold more than 2 billion bars and is now one of the top-five selling snack bars in the United States.
Being so ubiquitous has its challenges.
Selling through third-party retailers didn’t provide the same consumer insights that the team wanted to access. So it made a push to sell directly to consumers on KINDsnacks.com. In that process, the company has learned more about what motivates consumers to buy, along with invaluable ongoing insights as they tinker with new products and experimental marketing activities. The website would also be instrumental to enrolling their most valued consumers in subscription programs — an important recurring revenue stream that’s fueled their growth during the pandemic.
The website currently offers every single flavor from their snack collection, including the newest bars not available elsewhere, as well as the unique ability for consumers to build their own custom boxes as part of a hyper-personalized checkout experience.
KIND partnered with Ordergroove to implement the company’s subscription program in February 2019. KIND was challenged by a homegrown subscription system that lacked the flexibility or control for customers to create and manage a personalized bundle of KIND snacks. KIND leveraged Ordergroove’s REST APIs to build a custom front-end and test the exact customer experience they want, allowing shoppers to easily curate personalized variety packs for the Build Your Own Box (BYOB) experience. Each month, customers can update their assortment and stock up on favorites or try new flavors, with their options stored in the Ordergroove database.
By the Numbers
40% of total eCommerce revenue comes from Subscriptions
70% increase in YOY subscription orders
of total eCommerce revenue comes from Subscriptions
+24 AOV from Instant Upsell orders
KIND’s subscription program has grown considerably, now making up over 40% of total eCommerce revenue. In fact, Kind subscribers spent an average of 70% more than non-subscribers. A big reason is the benefits. Subscribers enjoy a 10% discount and free shipping on orders of $20 or more.
KIND also has been experimenting with Instant Upsell, an Ordergroove feature which allows customers to easily add new products into their upcoming subscription orders. It’s leading to even higher lifetime value. Upsell conversion rates are as high as 21% and AOV has subsequently increased 24% for this cohort.
Inside Kind’s Commerce Stack:
“Ordergroove’s set-it-and-forget-it software powers our subscription program and helps deliver loyalty, ease, and convenience that our customers can rely on.”
-David Wish, Senior Vice President of E-Commerce at KIND.