How CBDistillery Is Taking On the Subscription Market
CGT: How are you measuring success?
Symons: After launching, CBDistillery’s subscription program grew rapidly. Overall, it has probably become the most substantial area of growth for our business, and it now makes up a very large portion of our e-commerce revenue today.
Since implementation, 18% of new site visitors sign up for a subscription and we have seen an 89% retention rate. In just 90 days, Ordergroove helped us meet our yearly subscription revenue goal.
Also, prior to implementing a subscription program, we saw an average of about 90-day customer return rate — three months between repeat customers’ orders. Now it’s down to 40 days.
CGT: What were some of the challenges you encountered?
Symons: I wasn't expecting customers to cancel because they had too much product. But we found that if customers weren’t using their products consistently and became overstocked, they might cancel and we’d risk losing them forever.
To combat this, we made sure to educate customers about how to change the cadence and quantity of future orders. Therefore, instead of canceling, they’re more likely to pause their subscriptions and adjust their cadence or quantity moving forward.
[See also: Making the Pivot to DTC]
Also, it’s not an easy process to add a subscription program to your website without external support. We needed the right partner to come in and hold our hand to not only get it launched, but to continue to explore new ways to grow the offering.
CGT: What best practices can you offer to consumer goods companies exploring subscriptions or looking to boost their loyalty capabilities?
Symons: With Ordergroove, the delightful and easy subscription process has made our relationships with shoppers even stronger. The program’s success in giving shoppers a reliable, customizable and rewarding experience has been extremely valuable for our business.
If a brand can achieve this, it is huge for establishing loyalty across the board for all customers, new and returning.