Episode 135: Building a Pet-Centric Brand with Chad Kauffman of Kitty Poo Club
When the topic of subscription breakthroughs comes up, cat litter might not be on our radar. Yet Chad Kauffman, the brain behind Kitty Poo Club, is shifting that narrative. Having recently joined Nick Fredrick on an episode of the “Subscriptions: Scaled” podcast, Chad offers insights into the inception of this unique, subscription-based cat litter box service.
Kitty Poo Club is more than a typical subscription model. In a landscape dominated by monthly boxes of beauty products or gourmet foods, this company stands out with its dedication to making pet care simpler and more efficient. Their mission isn’t just about convenience but redefining the way we perceive and engage with everyday pet necessities.
Kitty Poo Club offers an all-in-one disposable cat litter box, designed for a full month’s use for a single cat. It ensures no odor, no mess, and minimal maintenance. The product went through a thorough developmental journey, starting with an initial prototype that underwent multiple iterations based on extensive feedback from cat owners. The heart of Kitty Poo Club’s success lies in its unique box design, which holds several utility patents. This unique design, paired with high-quality litters, provides a complete solution for cat owners. Launching in 2017, it swiftly garnered over 1,200 customers in its debut month.
Entrepreneurship in the Veins
With a lineage of entrepreneurial endeavors that spanned his school days, selling businesses both in high school and later in college, Chad boasts a diverse professional background. Following a rapid career progression at the E&J Gala Winery, he transitioned into the plastics industry with his father. Together, they pioneered the production of colored consumer storage products from recycled plastics, a rarity at the time.
Inspired by the success of subscription-based ventures like Dollar Shave Club, Chad began hunting for opportunities to tap into a multibillion-dollar industry. A conversation with his father about a disposable cat litter box, initially dismissed as “the stupidest idea” by Chad, soon turned into a realization. Despite his initial reservations, owing mainly to his personal allergies and unfamiliarity with feline pets, a deeper dive into the market revealed a sizable gap. The cat care industry, untouched by significant disruption, beckoned him to innovate. With a blend of business acumen, personal history, and a serendipitous idea, Kitty Poo Club was born.
The Lessons of Failure and Growth
Chad was no stranger to business difficulties when he started Kitty Poo Club. With eight failed ventures under his belt, he knew the perils of entrepreneurship. His decision to dive into the pet industry, specifically cat litter, stemmed from his deep-rooted belief that industries with little innovation were ripe for disruption.
He unveiled some trying times the company encountered, especially during the height of the Covid pandemic in 2021. Contrary to many businesses that faced challenges due to manufacturing lags in China, Kitty Poo Club’s woes were centered around astronomical freight charges and unexpected shipping delays. Their silica-based litter, integral to a significant portion of their subscriber base, was on the brink of running out entirely by August 2021.
Driven by transparency, Chad made a bold move. He decided to ship a domestically produced clay litter to the silica-based litter subscribers, charged their credit cards in full, but included a sincere letter explaining the situation. Further emphasizing the company’s commitment to customer satisfaction, he instructed his customer support team to offer a full refund for any complaints. The outcome? To his astonishment, they lost less than 1% of their silica-using customer base. Many patrons, after being introduced to the alternative litter, continued with the new product. The incident became more than just a supply chain hiccup. It underscored the strong brand loyalty Kitty Poo Club had cultivated over time.
Customer Connection: A Brand’s True Strength
Chad’s story isn’t just about overcoming operational challenges; it’s a testament to the power of brand loyalty and transparency. The success of Kitty Poo Club in retaining its customer base during the Covid crisis was rooted in its genuine connection with customers and its unwavering commitment to prioritize their needs.
In the initial stages, Facebook was the driving force behind Kitty Poo Club’s advertising. With minimal spend, the returns were lucrative, but as digital advertising became more sophisticated and costly, new challenges arose.
Chad remarks on the difficulty of scaling in the current digital advertising landscape, citing the high costs of customer acquisition. During the pandemic, diversification was key, and Kitty Poo Club explored other channels, such as TV advertising, leveraging a unique opportunity when audiences were largely homebound.
Growth Driven by a Niche Focus
While many subscription-based models flounder after initial success, Kitty Poo Club has not just sustained growth, but it has also expanded. The genius lies in identifying a particular problem — the cat owner’s hassle of dealing with cat litter — and providing a solution in the form of the disposable cat litter tray.
The company centers its subscription model on products that are tied to time. The initial subscription box might take five or six days for delivery, but then the cycle aligns seamlessly. Every subsequent month, subscribers receive their box at just the time they need it, alleviating any stress.
What makes Kitty Poo Club stand out further is its range. Beyond the cat litter, they have successfully integrated treats, toys and other products into their subscription model. However, these add-ons aren’t time-sensitive. Unlike the litter, which cat owners need monthly, toys and treats serve as spontaneous gifts. This flexibility further strengthens the club’s appeal.
Venturing Beyond Cats
Diversifying product lines remains a strategic move for many businesses. Chad mentions that about 60% of cat owners also have dogs. So, Kitty Poo Club has been considering expanding into the dog space. Although they haven’t launched any dog-centric products yet, there are plans in the pipeline.
Potential ideas include dog treats and toys that customers can include in their monthly subscription box as an add-on, aptly named “Kitty Poo Club Pals.”
Future Plans: Stepping Into Retail
DTC (Direct-to-Consumer) companies often dream of making their mark in the retail space. Kitty Poo Club is no exception. The company is now eyeing the retail space, not for direct competition but as a space for expansion.
Chad’s innovative approach with the Kitty Poo Club exemplifies how recognizing a genuine problem and providing a consistent, timely solution can drive success in the subscription business model. Their planned diversifications only suggest that this company has a lot more to offer in the future.
For anyone keen on learning more about Kitty Poo Club’s success, Chad recommends visiting their comprehensive website.
To dive deeper into these insights and more, ensure you subscribe to the podcast on Apple or Spotify. There’s always something to learn from industry leaders like Chad Kauffman.
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