How Kabo Increased AOV by 25% to Take Their Business Up, Pup, and Away!

From sending Instagram DMs to dog owners to serving 4000+ conscious pet parents every day, Kabo’s founders Vijay and Vino Jeyapalan have truly started the movement for better, more purposeful pet nutrition. Today Kabo’s fresh dog food business has managed to build a solid presence in Canada, launching new product lines (like the aptly named Monch Bars), and adding more regions to its distribution network.

The ingenuity of Kabo’s business is not in the novelty of the idea (pet food subscriptions existed before) but in the thoughtfulness of its approach. Instead of a one-size-fits-all solution, Kabo decided to build bespoke subscription plans for every customer and leverage first-party data to design the best subscriptions for them.

Making Scale and Agility Paw-sible

To complement its build-your-own-box model, Kabo needed a subscription and billing tool that operated seamlessly with, yet independent of, their native and third-party tools. They wanted a tool that could:

• Initiate subscriptions and seamlessly integrate with third-party or in-house tools

• Track subscription changes and make add-ons easy

• Validate applied coupons and discounts

• Enable out-of-the-box revenue recovery, dunning, and analytics

• Customize subscription offerings based on individual preferences

“While evaluating out-of-the-box eCommerce platforms like Shopify with Recharge and other plug-ins, we quickly realized that the degree of complexity involved in creating individual meal plans required us to create our custom application. So we adopted a headless stack with complete control on the frontend while Chargebee’s seamless API integration took care of the subscription layer at the backend," said Jon Ristovski, the CTO of Kabo.

Subscriptions Platform Un-Leashed

To give their customers complete control over their purchase and product experience, Kabo implemented the first-principles approach straight from the start. They focused on their core competencies - building customized, nutritious pet food subscription boxes while outsourcing the technical weightlifting of their subscriptions backend to Chargebee. They ensured their product roadmap stayed dynamic by taking away the hassle of subscription maintenance and uptime besides providing customers the flexibility to update their existing subscription plans.

A host of out-of-the-box solutions from Chargebee also helped Kabo build additional platform competencies as they scaled without reinventing their product flywheel. Here’s how Chargebee transformed Kabo's subscription journey:

• Offering a robust product catalog that can handle a wide range of subscription plan variations without complicating user journeys, enabling Kabo to build custom plans based on frequency and SKUs

• Offering flexible subscription add-ons to simplify upsells for complementary products

• Validating coupon codes before checkout to minimize revenue and opportunity loss

• Automatically syncing data across tools and systems to maintain data integrity and minimize human errors in the process

• Providing deep subscription analytics and metrics to understand customer journeys and optimize their retention and engagement flow

• Putting revenue recovery on autopilot with an out-of-the-box dunning and smart payment retry offering

The Payoff

• Seamless subscription add-ons unlocked Kabo’s upsell potential, providing customers with more choices and ultimately boosting the Average Order Value (AOV) for recurring customers from $80 to $100 within a year

• Aided Kabo’s focus on customer-centricity by providing seamless, non-intrusive subscription management and revenue recovery, helping them register a competition-toppling NPS score of 82

• Saved thousands of hours, dollars, and significant developer effort through robust API integrations and out-of-the-box subscription capabilities like dunning, dashboarding, and more

As a customer-obsessed brand, hyper-customized user experiences, granular insight into user engagement, and the freedom to experiment swiftly are critical to Kabo’s growth. A strong subscription management stack provides them the foundation to build modularity as they grow. By bullet-proofing their subscription management, Kabo also ensures timely shipping and delivery, so customers can truly enjoy a mlem-worthy experience.