🟣 How to Scale Wellness Commerce with Winning Subscription Strategies

Commerce Tips: Looking to grow your subscription program and keep customers loyal? Find out how small adjustments like flexible plans and personalized rewards can make a big impact. Learn what it takes to increase retention, improve CLTV, and create lasting customer relationships. Your subscribers are looking for convenience and value—make sure you’re delivering it.

$100M+ Brand Stories: Learn how Ancient Nutrition scaled to $100M by pioneering multi-source collagen, leveraging sustainable sourcing, and driving growth with education-first marketing.

Mindset of Winners: From its 2006 Falcon 1 failure to successful spacewalks, SpaceX has transformed space exploration through persistence and innovation, pushing boundaries in orbital missions and human spaceflight.

Health is Wealth: Ever wondered why top biohackers wear orange lens glasses? Discover how they block harmful blue light, improving glucose metabolism, reducing the risk of insulin resistance, and optimizing overall health.

On the Pod 🎧

Lastest episodes:

• S9 EP53: The New Playbook for Scaling Health & Wellness eCommerce Brands in 2024 → Kunle Campbell
  

• S9 E52: From $10M → $20M: How Tiege Hanley Doubled Revenue While Staying Profitable → Kelley Thornton, CEO

• S9:E51: Ex-PepsiCo Strategist Unveils Brand Positioning Frameworks that Transform DTC Brands → Kathy Guzman

• Cutout 8: Building a Barbecue Brand that Keeps Customers Coming Back → Kosmo Khosravi

• Cutout 7: Why Community-Driven Brands Are Disrupting Traditional Markets → Oren Schauble

• Cutout 6: How to Build a Polarizing Brand that Drives $40M in Revenue → Alex Neist

COMMERCE TIPS

The Mechanics of a Well Run Subscription Program

Last week’s issue covered aspects of fine-tuning your ‘subscribe and save’ on-site user experience. This week, I want to take a deeper dive into what it truly takes to run an efficient and scalable subscription program. In your health and wellness business, where most products require consistent use to be effective, a well-run subscription model can be a game-changer. Not only does it provide convenience to your customers, but it also ensures they maintain their wellness routines with timely, automated shipments.

For customers, they enjoy the convenience of not having to worry about reordering, along with cost savings and personalized offers that keep them coming back. For businesses, the benefits are just as significant. The predictability of recurring revenue enables more accurate financial planning, improved cash flow, and a higher customer lifetime value (CLTV). This mutually beneficial setup forms the foundation of a thriving subscription business, and getting it right requires attention to several key pillars.

1. Product Quality and Value

At the core of any successful subscription program is the product itself. For health and wellness businesses, ensuring that your products consistently deliver quality and value is essential for customer retention. Subscribers need to trust that what they’re receiving is worth their investment and that it supports their wellness journey.

2. Subscription Flexibility and Personalisation

Flexibility is crucial in retaining customers. Offering options to personalize subscription plans—like choosing delivery frequency, adjusting product preferences, or pausing and resuming subscriptions—gives customers control over their experience. You must think like your customer, a principle I emphasize a lot.

From their perspective: “I’ve just run out of my favorite supplement! I need an order dispatched ASAP—can your subscription program support this?” Or maybe, “I’m off on holiday for two weeks—can I pause my subscription?” You might also consider, “Upon delivery, can I reject an order I no longer need? Can I manage my subscription through an SMS or WhatsApp message?” By adopting your customer’s mindset, you ensure that your program remains relevant, driving long-term engagement.

3. Loyalty Program and Rewarding Retention

Subscribers should always pay less than one-off purchasers—they need to feel rewarded for their loyalty with savings. Pricing must reflect this, giving subscribers tangible benefits. Beyond that, a well-thought-out loyalty program should encourage customers to shop more, offering rewards for continued engagement. As we covered in detail in issue 5, “9 Types of Loyalty Programs: Which Is Right for You?”, a thoughtful loyalty program can deepen customer relationships and increase their lifetime value.

4. Operational Efficiency

Behind the scenes, your operations must run smoothly to ensure subscribers get their products on time, without any hiccups. This includes optimizing your supply chain, inventory management, and fulfillment processes to avoid delays or stock issues that could frustrate loyal customers. You don’t want to run out of stock—because from the customer’s point of view, they might turn elsewhere if the switching cost is low. Staying in stock is one of the most underrated growth levers you can tap into.

5. Proactive Communications

Communication is key, especially when things go wrong. If you do run out of stock—communicate! Any issues? Communicate! If customers have questions or problems, make it extremely easy for them to reach out. This could be via WhatsApp, SMS, on-site chat, email, or social media DMs. Response times matter, and quick, helpful communication helps maintain momentum and trust.

Beneath all of this, you need a tech platform that can handle your current transaction volume and accommodate specific custom needs. Data and reporting are key to understanding your subscription program’s performance, including crucial metrics like churn rate, customer lifetime value (CLTV), and average order value. CLTV, for example, directly informs your customer acquisition cost (CAC), helping you make more informed media buying decisions. I’ll cover this in more detail in an upcoming issue, where we’ll dive into how technology and data can help you scale and optimize your subscription model effectively.

$100M+ BRAND STORIES

How Ancient Nutrition Scaled to $100M with Multi-Source Collagen and Bone Broth 🦴

Ancient Nutrition has become synonymous with collagen and bone broth supplements, but their success wasn’t just about being part of the wellness boom. Jordan Rubin and Dr. Josh Axe, who co-founded the brand in 2016, were among the first to bring a multi-source collagen supplement to market, blending collagen from bovine, chicken, fish, and eggshell membranes. At a time when most collagen products were single-source, this innovation gave Ancient Nutrition a significant competitive edge. Fast forward to today, and the brand is generating over $100M in annual revenue, with a powerful blend of product innovation, sustainable practices, and direct-to-consumer (DTC) strategy driving their growth.

In 2018, the company received a $103 million investment from VMG Partners, which fueled its expansion, particularly in regenerative agriculture and international growth. With private equity backing and leadership at the helm, Ancient Nutrition continues to lead the market.

Let’s take a closer look at how Ancient Nutrition became a wellness powerhouse by breaking down their product, operations, marketing, and finance strategies.

1. Product: First to Market with Multi-Source Collagen

Ancient Nutrition revolutionized the collagen space by being one of the first to offer a multi-source collagen protein that combines collagen types I, II, III, V, and X from multiple animal sources, including bovine, chicken, fish, and eggshell. At the time, most competitors were focused on single-source collagen products, such as bovine or marine-only. By being first to market with this multi-source blend, Ancient Nutrition capitalized on a gap in the market, offering a product that appealed to consumers seeking a more comprehensive approach to joint, skin, and gut health.

Co-founder Jordan Rubin said, “We knew that collagen wa, but we also knew that a single source wouldn’t be enough. So, we set out to create a truly multi-dimensional product”s going to become the cornerstone of many people’s health regimens.

Their flagship product, Multi Collagen Protein, quickly became a bestseller, leveraging clean ingredients (non-GMO, grass-fed, pasture-raised) and their commitment to quality.

2. Operations: Leveraging Formula Ownership and Sustainable Supply Chains

Ancient Nutrition’s operational advantage lies in its blend of formula ownership and outsourced manufacturing. This hybrid model allows them to retain full control over product formulation while partnering with trusted third-party manufacturers to scale production efficiently.

• Formula Ownership: Ancient Nutrition owns the formulas for their products, allowing them to differentiate themselves with unique blends and maintain control over product quality. This proprietary approach has given them a competitive edge in terms of innovation and consistency.

• Contract Manufacturing: While they don’t own the manufacturing facilities, they have long-standing relationships with contract manufacturers who specialize in health and wellness supplements. This setup allows them to scale without the capital overhead of owning production facilities.

• Supply Chain: The brand focuses heavily on sourcing premium ingredients, including grass-fed and pasture-raised bovine collagen and sustainably sourced fish collagen. Their R.A.N.C.H. Project (Regenerative Agriculture, Nutrition, and Climate Health) has also made sustainability a cornerstone of their ingredient sourcing, particularly around regenerative farming practices to improve soil health (more details here).

This focus on sustainable sourcing, combined with the flexibility of contract manufacturing, has allowed Ancient Nutrition to grow rapidly while keeping their operations lean.

3. Marketing: Building Credibility Through Education and Community Engagement

Ancient Nutrition’s marketing efforts have been driven by education-first content and a strong presence across digital platforms. They have built a loyal community by sharing wellness information and positioning themselves as trusted experts in the health space.

Content-Driven Strategy: The brand has a strong presence on YouTube, Instagram, and Podcasts. Their founders, Dr. Axe and Jordan Rubin, both have large personal followings due to their expertise in holistic health. Dr. Axe’s platform alone attracts millions of visitors, and his podcast, blog, and social media channels are core parts of their educational marketing strategy. They often use these platforms to explain the science behind their products, which resonates with consumers who value transparency (YouTube Channel).

Influencer and Expert Partnerships: Ancient Nutrition has worked with respected health and wellness influencers to build credibility, similar to how Huberman supports Athletic Greens (AG1). Major advocates include holistic health experts, functional medicine practitioners, and fitness professionals who integrate Ancient Nutrition into their wellness advice. This includes partnerships with doctors and nutritionists who lend credibility to their products through expert testimonials (example of Dr. Axe’s collaborations).

Podcast Marketing: Their products are frequently featured on health-focused podcasts, such as “The Model Health Show” and “The Doctor’s Farmacy” with Dr. Mark Hyman, tapping into a wellness-centric audience (Mark Hyman Podcast). These appearances help them reach health-conscious consumers already seeking expert guidance.

By blending influencer-driven marketing with educational content, they’ve been able to build trust and foster long-term relationships with their audience.

4. Finance: Bootstrapped Growth, Strategic Investment, and Long-Term Expansion

Ancient Nutrition initially relied on bootstrapped growth, funding operations through revenue reinvestment from early product sales and support from its founders’ previous ventures. This model allowed them to maintain control and grow sustainably. However, by 2018, they took a significant step to scale their business by securing $103 million from VMG Partners (details here).

This private equity investment allowed them to expand their research and development efforts, accelerate product innovation, and support their regenerative farming initiatives. Additionally, it helped fuel international expansion and allowed them to increase their DTC (Direct-to-Consumer) presence while expanding into major retail chains like Whole Foods and Target.

With annual revenue now over $100M, Ancient Nutrition continues to scale while maintaining its core values of sustainability, product quality, and scientific innovation. Their strategic approach to financial management has given them the flexibility to grow without losing control of their brand’s mission.

Key Takeaways:

First-Mover Advantage: Ancient Nutrition’s early entry into the multi-source collagen market allowed them to carve out a unique position that competitors were slow to address. For brands looking to differentiate themselves, being first to market with a truly innovative product can be a major growth driver.

Operations and Supply Chain Flexibility: Ancient Nutrition has leveraged formula ownership while outsourcing production, giving them the scalability of contract manufacturing without sacrificing control. The lesson here is clear: You don’t need to own the entire production process to maintain quality and scale rapidly.

Education as Marketing: By focusing on educating their audience through platforms like YouTube, podcasts, and social media, Ancient Nutrition has built a loyal customer base. For brands aiming to build trust, leaning into education and transparency is a winning strategy.

Ancient Nutrition’s story shows how a combination of first-to-market innovation, operational efficiency, and content-driven marketing can lead to rapid growth—while staying true to core values of sustainability and wellness.

Commerce headlines

• Personalization is Key: Health and wellness DTC brands are increasingly focusing on personalized, data-driven solutions backed by scientific research. Consumers are demanding products and services tailored to their individual needs, with 82% of US consumers now considering wellness a top priority.
  

• Probiotic brand, Seed Goes Retail: Probiotic powerhouse Seed expands its reach by launching in Target stores nationwide—marking its first major retail partnership!
  

• Rihanna's Global Expansion: Savage X Fenty makes waves with its first international store opening at London’s Selfridges, bringing inclusive lingerie to a broader audience.
  

• Health Takes the Lead: Fastest-growing US DTC brands are in health - Hismile saw a staggering 455% traffic growth, while Ryze Superfoods grew by 408.6%.

• Dolly’s Beauty Debut: Country legend Dolly Parton enters the beauty game with a new lipstick line, set to hit stores in 2025—watch out for more products on the horizon!
  

HEALTH IS WEALTH

Why Biohackers Love Orange Lens Glasses: A Secret to Glucose Control 🧠

Ever wonder why your favorite biohackers wear those orange lens glasses? Turns out, it’s more than just a trend—it’s a way to protect their health. Recent research reveals that prolonged exposure to blue light from screens and LED lights can disrupt glucose metabolism, potentially increasing the risk of insulin resistance and metabolic disorders like type 2 diabetes.

By blocking blue light, orange lens glasses may help reduce this disruption, allowing the body to process sugars more efficiently. For biohackers, these glasses are a simple tool to guard against one of modern life’s hidden stressors.

Takeaway:

Orange lenses aren’t just for better sleep—they may support your body’s ability to manage glucose. Reducing blue light exposure could be a smart biohack for better metabolic health.

Hot Health Links:

• Red Light Therapy Reduces Blood Glucose Levels: A study from City, University of London and UCL found that 15 minutes of exposure to 670 nm red light can decrease blood glucose levels by 27.7% after glucose intake, suggesting potential benefits for diabetes management.
  

• Mr. Beast's Product Faces Ingredient Backlash: YouTuber Mr. Beast's new snack brand, Lunchly has drawn criticism for its questionable ingredients, sparking debate about the nutritional quality of celebrity-endorsed items.

MINDSET OF WINNERS

 The Power of Persistence: 18 Years from Failure to Space Walks 🌍

Failure can feel like the end of the road, but often, it’s just the beginning. In 2006, SpaceX’s first Falcon 1 flight ended in failure. The wreckage left behind was a humbling reminder of how fragile progress can be. But fast forward 18 years, and we see SpaceX not only recovering from that setback but redefining what’s possible—culminating in the stunning image of a spacewalk against the backdrop of Earth.

This transformation didn’t happen overnight. It’s a story of grit, patience, and relentless persistence. Elon Musk and his team refused to let failure be the final word. Instead, they used each failure as fuel for future success, embodying the mindset that real progress is often built on the lessons learned from setbacks.

Takeaway:

When you encounter failure, remember that it’s not the end, but a stepping stone. Patience and persistence transform defeat into victory, turning debris into milestones of achievement. Keep pushing forward—your spacewalk moment is coming.