How Canopy Grows Drives Revenue with Brij
Canopy is a high-end humidifier brand that successfully carved out a niche in the humidifier space for in-home beauty and wellness. And it has quickly built an audience of raving fans. Canopy has sold over 100,000 units in three years. And what’s even more impressive is that they have an 85-90% subscription rate on their filters.
The brand launched DTC first and went omnichannel very quickly. Canopy is now available in Violet Grey, Sephora, Anthropologie, Blue Mercury, and Nordstrom. It also sells through Jetty, and Canal, which allows it to partner with other brands that want to sell Canopy because it is complementary to their products.
A unique aspect of the Canopy humidifier is the interchangeable filter. It’s an integral part of the design that unburdens customers from cleaning out their humidifiers and maintaining distilled water supplies. The filter degrades and needs to be replaced every six weeks. Canopy has two types of filter replacements: a standard option for $15 and a filter plus aroma for $25.
The subscription component is also a critical part of the Canopy business model. And from a user experience perspective, Canopy wants to make it as effortless as possible to sign up for its subscription plans.
On the DTC page, filter purchase and subscription options are bundled in during checkout. However, in retail and partner marketplaces like Jetty, only a single filter is included in the humidifier packaging.
Canopy wanted to get retail buyers on a subscription plan as soon as possible. Getting this right early on was critical because they see retail as the primary growth driver in their business. With that subscription component also comes a meaningful focus on retention. “We believe retention comes with good product,” says Canopy marketing and operations leader, Michael De Santis.
With Brij, Canopy found a mission-critical link that improves the user experience. “We’re leveraging Brij’s platform to allow our customers to register their warranty and order filter subscriptions with a simple scan.” says De Santis.
Brij QR code experiences act as a bridge between retail and Canopy’s digital presence in three different ways. First, anyone that buys in retail is encouraged to register their product warranty immediately. That call-to-action has a QR code which links to a special warranty registration experience. This creates trust with the brand and is an email collection point for remarketing. To-date, Canopy has seen a 20% scan-to-registration rate!
The second and most critical touch point is a QR code inside the humidifier and in plain sight when changing the filter. This QR code is paired with a subscription renewal experience. “By baking the QR code into our product, we can facilitate education and subscription in a seamless way.”
The final QR code is on the scent pucks. This QR code leads to an aroma subscribe and save experience.
In all three cases, it’s not just about collecting emails and upselling. All of the experiences, come with educational videos on how to use Canopy and how to replace filters and scent pucks. It is not just helpful for retail buyers, but also for online buyers who opt not to get extra filters.
During peak periods during the winter, Canopy is getting over 4,000 scans per month and a 20% registration rate. Via the emails collected via Brij, Canopy is seeing an average incremental revenue of $18,000/month.
Canopy’s investment in Brij has returned 10x in the last 12 months. Right now, a majority of the business is DTC and the Canopy team expects this number to grow as they further expand into retail.
Onward and upward
With Brij solving for a critical connection between Canopy and it’s customers. More importantly, Canopy is set up for scale. In the next year, it plans to launch three new products and continue its expansion into retail., With their QR Code Experiences, Canopy has a seamless way to maintain a relationship with those buyers and fullfil their filter needs conveniently.