When subscription meat service ButcherBox launched in 2015, the company quickly embraced affiliate marketing as a relatively inexpensive way to acquire online customers. Much of this was done by directly reaching out to digital creators to spread the word about ButcherBox's meat cuts. Today, the company still relies on this army of power users-turned-influencers to drive its affiliate marketing strategy.
At the Modern Retail DTC Summit in Naples, Florida this week, Butcherbox CMO Kiran Smith spoke about how the company builds long-term loyalty among its customers.
Butcher Box was founded at a time when diets centered around healthy protein intake, such as keto and paleo, were gaining traction. This has helped ButcherBox establish itself as a convenient solution for home cooks interested in premium meat, poultry, and seafood. “It was a bit of a 'right place, right time,'” Smith said. Then, due to the coronavirus pandemic, more people ordered groceries delivered, further increasing interest in Butcher Box's delivery service. This bootstrapped company, which started through a Kickstarter campaign, has generated $600 million in revenue as of 2022.
The timing of the company's launch also helped it build strong affiliate marketing early on, before this strategy became a standard part of many DTC strategies. ButcherBox collaborated with digital creators to showcase their deliveries with recipes. The company paid commissions in exchange for content. “We have some of our original influencers who are still receiving checks,” Smith said. “It’s just that it’s more of a business now.”
Given its subscription model, ButcherBox primarily focuses on lifetime value (LTV) after acquiring customers from channels such as influencer and affiliate marketing. One of his main focuses for retention is to strengthen relationships with new customers through his first three-box deliveries, and Smith said the delivery period will be around the first three to six. It's the moon. “If you give me three boxes, we'll buy it for you,” she said. “We want to continue to show our customers value and get them excited about their next box.”
Eight years ago, when influencers were in their infancy, sourcing and retaining creators was much easier. But these days, ButcherBox has a more sophisticated model for onboarding and collaborating with creators and influencers. When ButcherBox started, it simply provided an influencer's box with a recipe card he could create and share with his followers, as well as a unique referral code. As the influencer world becomes increasingly crowded, finding authentic partners to talk about your brand is a challenge, Smith said.
But the company is now more considerate than ever about the creators it works with. These influencer accounts tend to be medium-sized, which Smith says is the “sweet spot” for Butcherbox. As a result, the company is currently working with outside agencies to identify and gain access to mid-sized influencers that it cannot sign up with on its own.
Although the company uses a variety of paid marketing channels, affiliate referrals remain effective in terms of cost and long-term retention.
This strategy is also part of Butcherbox's approach to growing its customer base through online communities. One example, Smith said, is the Butcher Box Facebook group, where 5,000 members constantly share cooking tips and recipes. The idea is to create an organic opportunity for some of ButcherBox's biggest fans to create content and spread the word about the company's products.
As such, Smith said the number of followers a ButcherBox influencer has is not important. Instead, the company is looking for a “type” of creators determined by their interest in food. “Someone who loves cooking and is passionate about teaching people not just about protein on the plate, but how to get that meal on the table in under 30 minutes.”
