Bharat Ayyar is the General Manager at Sunsoil, the leading organic CBD oil brand in the Northeast and the largest independent CBD brand nationwide.
We sat down with Bharat to unpack how the Sunsoil team designed and deployed a best-in-class subscription-based business model, diving deep into:
Before joining Sunsoil in March of 2020, Bharat had been a long-time customer and a firm believer in the company’s products and mission: to dramatically lower the price of CBD and make it accessible to all.
The pandemic created a massive shock for Sunsoil’s retail business. Declining foot traffic to natural food stores, Sunsoil’s primary customers, meant lower sales across the board.
So, Sunsoil decided to focus its efforts on building out eCommerce.
Bharat points out that growing the company’s eCommerce presence would help Sunsoil build the scale it needed to reduce prices. As a result, it was critical to the future of the brand.
Notably, they shifted ad strategies to emphasize subscription models in 2020. Now, most of their revenue comes from subscriptions, which make up nearly 80% of top-line revenue.
Sunsoil’s strategy is to take a highly utilitarian approach to serve its core customer. They aim to have a simple, straightforward purchasing experience, free from the bells-and-whistles of many modern eCommerce experiences.
Their core customer typically uses CBD to help with pain, aches, and recurring inflammation issues. A subscription-based product is ideal for their needs.
Sunsoil’s audience is unique in three ways:
With a product that is so integral to their customer’s daily life, Sunsoil was dedicated to working out all the kinks that came with setting up a subscription. And, because their customer base is less tech-savvy, Skio’s integration helped them easily spin up a simple and intuitive offering.
Before Skio, Sunsoil used ReCharge for their subscription needs. Bharat drives home the point that when using ReCharge, Sunsoil recorded a wildly high rate of subscription-related requests.
Because 80% of their orders were coming through subscription, Bharat knew that this was the volume of customer service issues and tickets weren’t scalable. So, he began researching alternatives that could seamlessly sit on top of Shopify’s native integration.
After meeting the Skio team and deciding to pull the trigger on migrating, his team at Sunsoil knew they’d found a partner that would grow with them over the long term.
Bharat specifically points out that the Skio team was:
Because signing up for a subscription was the core experience of a Sunsoil customer, Bharat appreciated that Skio’s service was trustworthy, adaptable, and enjoyable to use.
Over the past few years, not many digital payment processors were willing to work with CBD brands. Bharat explained Skio was instrumental in conducting all the back-end payments work to complete Sunsoil’s migration from Recharge.
He adds that Skio stayed on top of the manual migration in three ways:
Bharat notes that Skio’s dedication to a seamless onboarding directly lowered their customer’s friction to subscribing. Critically, after migrating to Skio, Sunsoil has seen a massive 30% reduction for subscription-related CS tickets, thus allowing his team to get back to building.