1. Adopt a straightforward approach to consumer relations: According to Chad, managing the client journey "from cradle to grave" fosters loyalty and trust in a manner that third-party collaborations cannot.
2. Be proactive and open when faced with difficulties: Sincerity cultivates long-term trust, as demonstrated by the gratitude and loyalty gained by proactively resolving supply chain concerns during COVID-19.
3. To stand out, innovate constantly: With four utility patents, Chad's emphasis on a distinctive product design is a prime example of how innovation fosters success and distinctiveness.
4. Give the client experience top priority as a growth tactic: Chad's active CX approach, which was influenced by Zappos, demonstrates how going above and beyond fosters brand loyalty and long-term success.
5. Give individuals and ideas time: Chad suggests that you put relationships first since every encounter has the potential to lead to your next major breakthrough or invention.
Chad, a born entrepreneur, revolutionizes the cat litter market with his innovative disposable litter box, which emphasizes customer experience. He shares insights on his patented box design, the strategies behind personalized customer interactions, and his plans to expand the product line to meet diverse feline preferences. This is the story of Kitty Poo Club's journey to success and the dedication to serving cat owners.
Meet Chad Kauffman, Co-Founder of Kitty Poo Club!
Kitty Poo Club was founded by a father and son duo who were passionate about cats. Chad and his dad thought there had to be a better way to handle cat waste materials. They came up with the Kitty Poo Club–a subscription kitty litter box that can be recycled and replaced at the end of each month.
Their product provides an easier, environmentally friendly way to take care of every pet owner's least favorite task.
Chad describes himself as a born entrepreneur. While already managing two companies, he became fascinated with the subscription revenue model. He shares, “At the time, back in 2017, I was really fascinated by what Michael Dubin was doing with Dollar Shave Club.”
This inspiration came when his dad suggested the idea of a disposable litter box. Initially, Chad rejected it, calling it “a really stupid idea for a lot of obvious reasons.” However, as he conducted further research, he discovered that “the litter market was the same size as the disposable razor market, a four-billion-dollar industry.” This revelation motivated him to consider how he could “disrupt this industry” by creating a direct-to-consumer e-commerce business with a recurring revenue model, which was something his other companies did not have.
What Excites Chad
Chad emphasizes that one of the most exciting aspects of his business venture is the direct relationship he has with consumers. He states, “Probably the most exciting thing to me and really one of the main reasons I went into this space, agnostic of the actual product, was the fact that I really wanted to have a direct relationship with my consumer.” He prioritizes controlling the customer experience “from cradle to grave,” which led him to make a significant decision early on: “I decided with the business that I was not going to outsource most of the core functioning areas of the business.”
Chad explains, “We handled everything from the actual manufacturing to the pick and pack to all the customer service.” He believes that relying on an omni-channel approach or working with big-box retailers limits opportunities for customer interaction, which is why he values the direct-to-consumer model so highly. “That’s the thing I enjoy most about E-Commerce and what we’ve done in building the company,” he concludes.
The team
Chad highlights the operational structure of his company, noting that it features a well-automated manufacturing facility located in northeast Ohio. “We have a small team of about 15 to 20 people that work in our facility in the manufacturing and fulfillment side of our business,” he explains.
In contrast, the majority of his team operates remotely, comprising knowledge-based workers from across four or five states. “Those are really more of the knowledge-based workers,” he elaborates, including positions like CFO, controller, and account managers. Additionally, he mentions that “all of our customer support team, all of our marketing team, all of our engineering teams” are also remote, demonstrating a flexible approach to staffing that allows for a diverse and dispersed workforce.
Chad recognizes CX as a core aspect of his revenue and growth strategy. Inspired by the legendary service model established by Zappos, Chad prioritizes a hands-on approach to CX at his company, starting with a small customer support team that has grown to five full-time U.S.-based employees. This dedicated team is available through various channels, including phone, chat, and social media, ensuring customers have multiple ways to interact and receive assistance. "The customer is always right," Chad asserts, emphasizing their commitment to going above and beyond to ensure customer satisfaction.
Chad also highlights innovative strategies for maintaining strong relationships with customers, especially during challenging times. For instance, when faced with supply chain issues during the COVID-19 pandemic, the company proactively shipped a different type of litter to customers who were on subscription, prioritizing the need for their pets over potential dissatisfaction. “We felt like some litter would be better than no litter,” he explains, revealing the calculated risk involved in that decision. By communicating openly with customers and providing a money-back guarantee, the company not only mitigated potential backlash but also received an overwhelming number of thank-you notes in return. This approach exemplifies how prioritizing CX and fostering genuine connections can lead to long-term loyalty and positive brand perception.
Chad emphasizes the significant innovation behind his product, particularly highlighting the unique design of their litter box, which he considers the "secret sauce" that sets the company apart in the cat litter market. “All of our boxes come with great litters,” he explains, but it’s the box itself that distinguishes them from competitors.
With four issued utility patents, Chad points out the complexity and significance of their design, noting that “utility patents are very tough” to secure, emphasizing the originality and utility of their product. The manufacturing process involves collaboration with three suppliers across different states, transforming flat sheets into innovative litter boxes, showcasing a commitment to quality and ingenuity.
Chad’s number one piece of advice for business owners? Make time in your schedule for people. You never know which meeting or phone call might result in your next big idea.
What's the 1 tool you couldn't live without? Shopify.
Most important quality you look for in new hires? A good cultural fit.
Last book/podcast that you found interesting? The All-In Podcast.
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