Discover how ButcherBox used RFM analysis to segment customers, create targeted strategies, and launch a successful loyalty program that reversed two years of declining revenue.
April 11, 2025
How RFM Analysis Helped ButcherBox Reignite Revenue Growth
ButcherBox hit a wall. After years of rapid expansion, the subscription-based meat delivery service found itself facing two straight years of declining revenue.
The turning point? Implementing RFM (Recency, Frequency, Monetary) analysis, a segmentation framework that reshaped how they approached customer strategy. With RFM, ButcherBox identified their most valuable customers, built more targeted engagement strategies for each segment, and even laid the groundwork for their loyalty program—setting them back on a growth path.
Reba Hatcher, Chief Commercial Officer at ButcherBox, shares how this analytical approach transformed their business.
What is RFM Analysis—Why It Works
RFM is a classic segmentation method that groups customers based on three key behaviors:
- Recency: How recently they made a purchase
- Frequency: How often they buy
- Monetary: How much they’ve spent
Example of an RFM analysis on Recency and Frequency in Maestra
This kind of segmentation helps businesses stop treating all customers the same—and start focusing on the people who really move the needle. It’s simple, actionable, and incredibly effective for improving engagement, retention, and overall revenue performance
Initially, we were treating all of our customers the same. That worked when most came through specific channels like keto or paleo diet affiliates—we had a pretty homogeneous audience. But as we expanded into more mainstream markets, this one-size-fits-all strategy became a limitation. That’s when we turned to RFM analysis to better understand the different segments within our customer base and develop targeted strategies for each one.
1. Create Targeted Strategies for High-Potential Customers
RFM analysis helped ButcherBox identify six distinct customer segments, including two key groups:
- “Full Subs”—customers who receive boxes monthly and regularly add extra items
- “Half Subs”—customers who show strong interest but aren't fully maximizing their orders.
This segmentation revealed a critical opportunity: stop treating all customers the same, and instead focus on lifting high-potential segments. ButcherBox analyzed their behavior and took direct action to move them closer to “Full Subs” category.
We focus on people who are showing deep interest in the brand and are close to the right behavior. By closing that specific gap, we can make a lot more revenue instead of spreading our efforts across everyone who isn’t performing optimally.
This strategy works because it channels resources toward customers who already understand the brand’s value—but face specific barriers or gaps that stop them from doing more. By removing these specific barriers, businesses can turn potential into revenue without needing broad or costly campaigns.
2. Design More Effective Customer Journeys
RFM doesn’t just tell you who your segments are—it gives you the data foundation to build smarter, more strategic customer journeys. Once their segments were defined, ButcherBox analyzed each group's behavior patterns to pinpoint friction and opportunity.
For new customers, that meant rethinking onboarding entirely:
Having a strong onboarding journey was crucial for converting first-time subscribers into loyal customers. We implemented a 21-day cycle of emails, SMS, and site interaction guidance to set new customers up for success. The results were immediate: more people got on a positive trajectory faster—instead of waiting for them to naturally mature as members over time.
With RFM insights, companies can recognize early behaviors that predict loyalty—and guide customers toward that outcome sooner.
3. Prioritize the Most Impactful Metrics
RFM analysis helps you discover which customer behavior metrics actually drive growth for your business. For ButcherBox, order frequency mattered more than average order value.
Our segmentation analysis showed that building the meat consumption habit was the real driver of long-term value. And to become a part of customers’ routine, we need to increase order frequency. We’d rather have customers ordering more regularly at a slightly lower price point than placing larger, less frequent orders.
Through targeted efforts—like our onboarding program, promotional offers during the first 60 days, and education around product variety—we successfully increased orders per member per month. For a subscription business metric is much more powerful than chasing a few more dollars in average order value.
RFM helps you prioritize. Instead of trying to boost every metric at once, you can focus on the one that delivers the biggest payoff for your model—whether that’s frequency, recency, or monetary value.
4. Build a Foundation for Advanced Loyalty Programs
RFM also gave ButcherBox the foundation they needed to launch a successful loyalty program in October 2024. After segmenting their audience, the team began testing incentives and tracking behavior changes across specific customer groups.
We ran segment-specific tests that gave us real conviction around creating a loyalty program. For example, we’d give a coupon to a very specific group of customers who had taken an action for three months in a row. Then we measured their behavior during those three months—and for two months after. What we cared about wasn’t just short-term results—it was whether we could shift their purchasing behavior permanently.
And that’s exactly what happened. When we targeted the right segments with the right incentives, the change stuck. That success gave us the green light to move forward with a full-scale loyalty program—confident that it would drive real, long-term value.
By analyzing your audience segment by segment, you can better understand customer needs and choose more effective tools and strategies to drive engagement and loyalty.
5. Establish a Common Language Across the Organization
One of the most unexpected—but powerful—outcomes of RFM analysis at ButcherBox was the creation of a shared vocabulary across teams.
Creating a common segmentation language transformed how our entire organization works together. Once everyone understood terms like 'Full Subs' and 'Half Subs, ' it gave the whole company a shared frame of reference. Our analytics team could break down metrics by segment. Operations could evaluate shipping times and delivery experience by segment. Marketing could craft targeted communications for each group.
What’s been particularly exciting is seeing how different departments apply the same segmentation in their own way. It made cross-functional collaboration far more meaningful because we’re all speaking the same language about our customers—even when we’re looking at completely different aspects of the business.
Implementation Tips for Your Business
Based on ButcherBox's experience, here are some practical ways to get started with RFM analysis:
- Focus on actionable segments: Target mid-tier customers—like ButcherBox’s “Half Subs”—who are engaged but need a nudge to level up.
- Create tailored journeys: Whether it’s a 21-day onboarding flow or something else, build experiences designed for each segment’s needs.
- Identify your primary growth metric: Use RFM data to discover whether recency, frequency, or monetary value will make the biggest impact. For ButcherBox, frequency was the game-changer.
- Run targeted experiments: Test specific on defined segments, measuring both immediate impact and lasting behavioral changes.
- Look for lasting impact: Don’t measure just short-term lifts—track whether customer behavior changes stick after the promotion ends.
The Bottom Line
For ButcherBox, RFM analysis and customer segmentation weren’t just tactical—they were transformational. After two years of declining revenue, this approach helped them identify high-value customers, unlock hidden opportunities, and guide every department with more clarity and alignment.
Whether you’re a subscription business or traditional retailer, RFM analysis offers a simple but powerful way to deliver more relevant communications, drive long-term loyalty, and fuel sustainable growth.
Struggling with retention and looking to revitalize your revenue growth? Maestra can help you identify your most valuable customer segments and build targeted strategies that drive lasting results. Book a demo today to see how our platform can transform your approach to customer data and put you back on a growth trajectory.