4 cannabis derived subscription products that are attracting the right kind of attention
The subscriptions business model has come a long way since the days of magazines and milk delivery.
It all comes down to two words: recurring revenue.
Many merchants have recognized that it's good business to diversify their income with a subscriptions offering. Not only does recurring revenue provide peace of mind from a business growth perspective, but it makes it easier to buy the right amount of raw materials to create products efficiently.
Today we are going to pick up our Subscriptions Industry Blog series with a deep-dive into a rapidly emerging industry that even the most savvy subscriber might not realize they can purchase with recurring payments.
What is Cannabis anyway? It refers to a group of three plants, made up of more than 120 components, known as cannabinoids. Where many associate cannabis with recreational or medicinal marijuana, our focus is on savvy companies breaking down cannabis plant into various components like CBD that are used for medicinal purposes or to create health and wellness products.
1. Clean Remedies - Hemp Product Subscriptions
This hemp products company was started with a desire to improve people's lives through a natural approach to health and wellness. They sell a variety of hemp oils, topical creams and gels, and other products that are good for your body. They also offer a tempting discount to customers who subscribe:
Items like this THC-free hemp oil are consumable and designed for consistent use, making it the perfect subscription product!
With a smooth and easy-to-follow onboarding flow, and a discount offered to customers for subscribing to this consumable product, what's not to love? Customers pick their flavor, quantity, and subscription option, including how often the product gets delivered, then click add to cart and their purchase arrives at their doorstep. It's that easy!
Key Takeaway: Subscribers receive 20% off of their first order, then 15% off recurring orders after that. This is a great way to get customers in the door. Once they try one round of these quality products (at a reduced rate) they likely won't want to stop subscribing.
2. Omax Health - CBD Subscriptions
This California-based company sells health and wellness products to help people "live life to the max." Since 2008 they have sold millions of their "science-backed" products, encouraging people to think about the quality of what they put their bodies and how it can affect their lives.
Some of their products include natural pain-relief remedies, as well as sleep aids like the CBD soft-gels shown below. They do a nice job of easing customers into their subscriptions onboarding flow without being overwhelming or having too many options. Once customers have selected a product, they are able to pick if they want a one-time purchase or want to subscribe and save 20% and get free shipping.
Key takeaway: Free shipping is a great way to entice customers to subscribe rather than making a one time purchase. This will help secure recurring revenue and put your business in a stronger position to grow.
3. Hemp Crate - CBD Products
More and more, customers are purchasing subscription boxes and crates as a way to get extra value out of their recurring orders. They are also super fun to get in the mail, and even have sparked a culture of viral video box openings.
This cannabis subscriptions company offers a delightful assortment of products and crate options. Customers can choose from six different packages (including one for pets!) and then decide on their payment plan. Buying multiple boxes in advance provides greater value for the customer and locks in valuable longtime revenue.
One thing that makes Hemp Crate stand out are all the educational resources offered free on their site. As the cannabis industry grows, it's important to educate customers while dispelling myths and negative stereotypes. Their CBD 101 guide offers in-depth information on cannabis and CBD, so customers can make the right choice on what kind of products they wish to purchase.
Key takeaway: offering free content that is valuable or useful on your store is an excellent way to increase meaningful traffic and grow customer loyalty. If your 101 guide or ebook becomes someone's go-to resource, they will be sure to think of your brand first when it comes time to subscribe to a product.
4. Hemper - Cannabis-Derived Products
Never underestimate the importance of a great subscriptions onboarding flow.
This company sells cannabis products and crates with a variety of interesting subscription options. Customers can pick from a variety of cannabis accessories boxes to find the perfect fit for their budget and needs.
Where this store really shines is in the way they reveal their subscription options organically throughout the site. For example, individual items ask the customer if they would like to subscribe and save 25%, allowing them to select their subscription duration. This is a great way to turn what was going to be a one-time purchase into several months or more of revenue.
Once the customer chooses the box or item of their choice, they are guided through an easy three-step process to finalize their purchase. With a beautiful layout and intuitive user experience, customers can get signed up for their subscription with minimal obstacles, or reasons to abandon their cart.
Key takeaways: Don't forget the aesthetic side of onboarding. Strong graphic and UX design can make the difference between a customer completing their purchase instead of navigating away to shop elsewhere.
Looking to get in on the goods?
If your business would benefit from adding a subscription option, or you're looking to reinvent your company entirely, look no further than Bold Subscriptions.
Our popular subscriptions app has helped many companies increase their AOV and generate recurring revenue.
We know that's a lot to take in, but don't worry!
Our free ebook, 7 Subscription Models to Master, will teach you everything there is to know about this year's most exciting ecommerce business model.
For any merchant who uses Bold Subscriptions, we recommend using this as your official playbook.
Are you ready to become a subscriptions pro? Follow the link below: