In 2018, Dylan Ralston, founder of the Superfoods Company, created the formula for the world's first effervescent tablet, packed with 15 natural foods — right in his kitchen.
Today, Superfoods Company is one of the top-selling online effervescent tablet companies in the world with a loyal subscriber base of over 200,000.
When Superfoods Company launched its first product Skinny tabs, demand grew steadily by word-of-mouth. They went cash flow positive and attracted 10,000 new subscribers each month. With great volumes of subscriptions came great challenges that their previous billing tool was unable to cut through:
Increasing ‘Subscribes’ over one-time ‘Purchases’:
Superfoods’ Customer Acquisition Cost (CAC) remained the same, whether a customer did a subscription or a one-time. To acquire customers who provide a greater LTV and potentially a higher ROI, the team needed to drive subscription sales.
Increasing the average order value with an expanded product portfolio: A collection of products drives the company’s fortune —Superfood detox tabs, Super Amazing Coffee, and Apple Cider Vinegar Gummies.
Paul Kapsner, Director of Finance at Superfoods Company says, “We want to incentivize add-on purchases to customer subscriptions. Our customers should be able to mix, match, and add coffee creamers, coffee pods, or apple cider vinegar gummies based on their preferences. This strategy should work in the interest of our customers as well as increase our average order value(AOV) without us having to invest in digital ads to acquire new customers for our family of products. We already have them!”
Reminding their customers to pay. Manually following up on payment renewals was a pain.
Evaluation: Superfoods Company looked at more than a handful of potential solutions to their woes. What set Chargebee apart was its depth of capability, customizations, and integrations with helpdesks, CRMs, eCommerce fulfillment software, etc.
Chargebee was hired to cast a spell on not just their billing module but a whole lot of other related functions. The team at Superfoods Company uses Chargebee as its highly sophisticated laboratory to carry out acquisition and retention experiments. Every single day!
Customer cancellation trends to retain customers better: As the Director of Finance, Paul looks at the subscription cancelation trend every week to identify the patterns around when customers cancel in the life cycle of their subscriptions.“Chargebee helped us figure out the pattern when cancellations occur after subscription purchases. With data from the cancellation reports and our exit intent survey, we are able to implement strategies that help prevent churn and instead create product stickiness.” explains Paul.
Rapid experiments with pricing and plans to increase subscription purchases: Superfoods Company uses Chargebee’s flexible product catalog to constantly roll out new price points and discounts, A/B test, and learn what combination of pricing, promotions, and plan lengths equates to the highest customer LTV.
Flexible add-ons + product bundles to up-sell smarter: The team uses Chargebee’s add-ons system to tailor creative product bundles with their tablets and coffee add-ons to test which bundling strategy works to increase its total Average Order Value (AOV). They also test the add-on recommendations with a small segment of new subscribers before rolling it out to everybody.
Automated dunning cadence to minimize payment failures: Chargebee's automated dunning helped the team decipher when declines occur and set a cadence optimal for minimizing failed payments. Allowing customers to pause their subscriptions temporarily also helped reduce churn significantly during COVID.
“30 minutes is all it takes to roll out a new pricing experiment!”
On a scale of 1 to 10, Paul rates the difficulty of ‘making witty pricing changes’ a 2 or 3. He shares “Our philosophy as a company is to not spend months deciding the right price prior to launching a new product. We go with what we think makes sense initially and then use the Chargebee platform to A/B test and decide on the optimal price. Chargebee enables us to roll out a new pricing experiment in 30 minutes. We're also allowed to make mistakes and find the right pricing point that suits our customer segments."
Expanding its product line with revenue efficiency
For Superfoods Company, launching a new product line means 99 different problems - configuring the product catalog, setting prices, add-ons, discounts, and more. But, with Chargebee, all of that becomes as easy as flipping movies on Netflix.
"Chargebee has become a part of our product roadmap now. Whenever we launch a new product line we are assured that Chargebee will handle the revenue operations side of things from day 1."
Creating exceptional value for customers is central to Superfoods Company's mission. The team brings this value to life by taking the reins to constantly innovate, experiment, and uncover what keeps their customers happy.
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