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Pet wellness brand Lolahemp conquers low AOV, high customer acquisition cost, and a complex sales funnel, doubling subscriptions & boosting AOV 43%.
The Lolahemp story starts with the love for a pet 💜
In 2012, Joey DiFrancesco sought a natural remedy for Lola, his adorable Chihuahua rescue.
Lola suffered from severe anxiety. Her transformative journey with hemp oil inspired DiFranceso to found Lolahemp, a pioneering pet wellness startup based in Brooklyn and dedicated to providing high-quality CBD solutions for pets.
In this case study, you’ll learn how Lolahemp used Rebuy to address business challenges like low average order value (AOV), high customer acquisition cost (CAC), and a lack of subscribers. In the end, their strategy boosted financial gains and streamlined the buying journey for Lolahemp customers (and their pets).
Join us as Joey (and Lola) share how they used Rebuy to quickly grow their business and put their anxieties to rest.
Challenges
A stagnating subscriber base is a relatable problem for many ecommerce founders.
“Subscriptions are the name of the game,” says DiFrancesco. And yet, very few customers were subscribing. “I had most people ordering one time.” While DiFrancesco knew the benefits of a subscription model, he wanted to do more to grow that area of the business.
But boosting subscriptions was one of many challenges facing Lolahemp in the highly competitive pet industry.
Lolahemp’s primary challenges included:
- A scarcity of subscribers
- An overly complex sales funnel
- Low AOV compared to industry competitors
- A cumbersome process for testing product offers
The company’s conventional marketing approach resulted in sluggish sales funnels. It also hindered the quick experimentation necessary for understanding customer preferences. DiFrancesco explains, ”I had these 4 and 5-step funnels where I had customers dropping off at the second and third step.”
DiFrancesco wanted to speed up his testing process, but hiring a developer would've slowed him down. “At the speed that we’re doing this, I don’t want to rely on a developer. I'm testing offers nonstop.”
"If you're testing different offers quickly - faster than your competitor - and you find winners and know how to scale those, you're going to win."
Strategy
To overcome these challenges, Lolahemp implemented three powerful revenue-boosting tools into its online store and sales funnels:
- Smart Links
- Smart Cart™
- In-cart cross-sells and subscription upsells
DiFrancesco employed in-cart cross-sells and subscription upsells through the Smart Cart. This introduced new products and encouraged customers to join the subscription program.
Then, he discovered Smart Links.
“I set up Rebuy for the Smart Cart functionality. And then I discovered Smart Links and was like, wow, this app’s amazing.'”
Smart Links Unleashed
The sales funnel, initiated with a Facebook ad, incorporated Smart Links on the landing pages, streamlining the buyer’s journey while significantly boosting conversion rates and reducing CAC.
When clicked, a Rebuy Smart Link sends your customer to a cart or checkout page conveniently pre-filled with personalized products and discounts. You can use them on landing pages, in emails, or anywhere you can use a typical hyperlink.
“I set up Rebuy for the Smart Cart functionality,” says DiFrancesco. “And then I discovered Smart Links and was like, wow, this app’s amazing.”
Smart Links alone accounted for a paw-sitively inspiring 78% of Rebuy-generated revenue for Lolahemp.
DiFrancesco’s appreciation for Rebuy's efficiency was evident: “For me not being a developer, being able to test offers that quickly with Smart Links — it's just been a godsend.” This reflected the user-friendly nature of Rebuy, even for non-developers like DiFrancesco.
Funnel Optimization
Speaking of offer testing, DiFrancesco favors speedy experimentation.
“Everybody gets caught up on little growth hacks here and there. And those are helpful," he admits. "But if you're testing different offers quickly, faster than your competitor, and you find winners and know how to scale those, you're gonna win.”
DiFrancesco uses Smart Links to test and learn quickly what offers resonate with his customers. But that's not all. He also optimized his sales funnels, eliminating extra steps and reducing CAC. Warm leads no longer had to search product pages to find the products they saw in the Facebook ad.
“When I implemented Smart Links into my landing pages, it literally cut my funnels down by 2-3 steps.” For Lolahemp, that meant more conversions and a smoother, more efficient buying process.
DiFrancesco leveraged Rebuy integrations with Klaviyo for targeted email campaigns (also equipped with Smart Links). He used Recharge as his subscription management platform.
This comprehensive strategy allows him to test offers throughout the year before identifying the most successful ones to deploy during BFCM and the crucial holiday season.
It almost feels like the whole support team is working on your problem until it’s fixed. They provide a ton of updates along the way, and that’s a great feeling.”
Results
Beyond the financial gains, Lolahemp experienced time savings as DiFrancesco could now swiftly test and implement upsells and cross-sells without relying on a developer.
The optimization of the buying journey resulted in improved customer satisfaction, with Rebuy Smart Links guiding customers to the best products for their pets.
In-cart features like personalized cross-sells and a free shipping meter contributed to an engaging, seamless shopping experience. Plus, subscriptions started flying out the door. Over six-months, they more than doubled.
DiFrancesco praised the support team, stating, “It almost feels like the whole support team is working on your problem until it’s fixed. They provide a ton of updates along the way, and that’s a great feeling.”
And as for AOV? Let’s just say DiFrancesco and Lolahemp raised the woof!
Lolahemp saw AOV increase 43.9% and Customer Acquisition Cost decrease 23.5%. In addition, subscription volume increased 120% within six months.
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