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Cannabox achieves 30% increase in repurchase rate with Lootly

Industry: Weed Box Subscriptions

Platform: Woocommerce

Favorite Feature: Floating program widget

2021

Launched Loyalty and Referral Program

30%

Increase in Repurchase Rate

20%

Decreased CAC

Researching loyalty programs we found Lootly to be the best for integration and features

Michael Berk

Retention Marketing Specialist

Company Overview

Founded in 2013, Cannabox was the first weed subscription box available on the market, introducing an innovative alternative to the traditional smoke shop. It is founded by Michael Berk, who is also the retention marketing specialist for the brand. The company is founded in Phoenix Arizona, where the headquarters reside.

In short, Cannabox is the best weed box subscription and online smoke shop. It is the number one weed smoking subscription available, filled with premium cannabis smoking products, custom T-shirts, and all of your smoking accessories.

Cannabox uses monthly themed boxes to showcase exclusive bongs, rigs for dabs, hand pipes, rolling papers, and smoking necessities. This weed box partners and allies with top brands, featuring Raw, Grav Labs, OCB and many more.

We needed a way to motivate our customers to shop with us again, and loyalty incentives were the best way to make us stand out from the competition.

Challenge

We spoke with Michael from Cannabox, who is the brand’s founder and retention marketing specialist. We wanted to learn more about their loyalty marketing journey and their future plans in this domain.

The main reason Michael decided to explore loyalty marketing was to find a way to increase the brand’s retention rate. At the time, they were struggling to motivate customers to come back to their store and thus, experiencing low growth rates in terms of sales and repurchase rates.

This was a problem with high impact on the brand’s overall growth strategy, since with less customers coming back to order, the brand’s growth was not sustainable. Therefore, a solution had to be implemented.

Loyalty programs offered a way to provide that motivation for customers in the form of a reward they can use back at the store.

Before discovering Lootly, Cannabox deployed their loyalty program via the Woocommerce integrated points system. However, this system lacked several crucial features for Cannabox: customization options, automated communication emails and a user-friendly interface. So, they decided to explore alternatives and found Lootly.

Solution

Cannabox’s must haves were: easy integration with Woocommerce, better user interface that will align and support the overall user experience on their site and most importantly, the option to send automated emails to customers to notify them of their rewards.

Lootly stood out from the rest of the options they researched because it offers all the things they needed to deploy their ideal program: smooth integration with Woocommerce, customizable interface and competitive price.

Cannabox went with the standard deployment method and the one we highly recommend: floating program widget on all pages, so that the program is always visible and accessible for customers. This method also supports the overall shopping experience from various aspects: whether you’re aiming at attracting new customers or motivating existing customers to take advantage of your program and place another order.

The widget is customized to fit the site’s branding and they also have deployed a rewards page that explains the overall offer.

Aligned with their goals, they offer a points and rewards program with lots of earning and spending actions, as well as a referral program that is designed to attract new customers and also increase the repurchase rate.

When they first introduced the loyalty program to their customers, Cannabox made sure they won't lose their previous point balance by importing the data into Lootly, and then sent them an email to introduce the new system they implemented for their ease of use.

Lootly integrated seamlessly with our Woocommerce site, and that was super important. Also, the floating widget on all pages is a great way to expose the program to a much wider audience.

Results

Since they implemented their program with Lootly, Cannabox has achieved fantastic results and enjoyed several benefits.

For starters, their customers were happier with the new program experience and started using it more than what they used to when it was deployed with the previous system. Thanks to the better user interface and the continuous communication, customers were able to see the value of Canna Club.

Cannabox enjoyed better analytics, much more customization options and a better interface for their program which also made the team happy, not just their customers.

The numbers are also impressive.

Since they launched in May 2021, Cannabox saw a 20% decrease in customer acquisition costs, a 30% increase in repurchase rate and a 10% increase in the average order value. Also, an ROI of 4X.

Impressions and future plans

With customers being more and more engaged with the program, Cannabox is happy with the results Canna Club drives for the business. They’re super happy with the customer support they receive from our team and plan to continue adding to and tweaking their programs for maximizing their performance metrics in the future.