Est. ELIZABETH KEENAN: I hadnt, but I have now. Interestingly, the socks Bombas sells to the general public, are not the same ones they donate. Its curious as to why they would adopt an approach that required them to sell a high priced product. So, theyre getting all this up and running, theyre figuring out how to get the socks in the hands of the people that need them, and then COVID hits, the pandemic hits. ELIZABETH KEENAN: So, one of the founders, David Heath had actually come across an infographic that indicated the number one requested item from homeless shelters is socks. That's how I came up with the original Bombas sock., Company surveys revealed that consumers prioritize either product or mission depending on the marketing messages theyre exposed to. And so doing, it's become a $100 million brand. That approach allowed us to onboard new team members to keep the team lean, and not hire a bunch of people for channels that weren't yet proven out. Weve also specialized the teams more over time - we used to have generalists, but as Bombas' scale has increased, we've brought in people with more specific areas of expertise. And contrast that then with TOMS and the way that they went to market, it felt like TOMS was much more out front about what they were doing. Daymond John, one of the sharks, ended up investing in them. Specifically, they started with Facebook ads where they were featuring primarily pictures of their socks. Once it'd been scaled to a place where it could merit a full-time hire, we'd bring someone on internally. Initially the company had to figure out how to price its product. The process was so exciting. Simple, concise and clear. With a mission-based brand, you need to make sure that customers are engaged with the company values as well as the actual product being purchased. Due to the unexpected surge in orders, their warehouse was around a week behind. BRIAN KENNY: They feel good. BRIAN KENNY: All right. By focusing on a mission that affects their customers and their communities, the company has taken a mundane and utilitarian item and given it the ability to effect social change. And that will allow them to both sell their products and earn profits the way they need to be able to then support this mission. Lead with your purpose. How do they do it? The other thing that I think is important for listeners to take away is that Bombas socks are quite comfortable. BRIAN KENNY: Yeah. BRIAN KENNY: Wow. BRIAN KENNY: So, theyre always promoting the socks themselves, the attributes of the socks. Now, most of the sales for them have been direct to consumer. How does it relate to the things that you think about as a scholar? Thanks in part to a successful Indiegogo campaign (950% of goal raised) in September 2013 and an appearance on Shark Tank a year ago, Bombas has made strides in the specialty retail market. A great example of a time when purpose was more significant than product was when COVID-19 first hit. In other cases, they donate other items that arent exactly comparable. Getting this buy-in from team members is important for a mission-based company like Bombas because they act as evangelists for the brand. Be sure to rate and review us on any podcast platform where you listen. Buy 1 pair for yourself and donate 1 pair to homeless now thats a great feeling of accomplishment, isnt it? Their impact channels became a platform for other companies trying to make a difference. Now I get it, thank you. Today, Bombas requires all new hires to take 10 pairs of socks and hand them out to homeless people they meet within the first 2 weeks on the job. Their exact sequence of emails that they use get more customers to buy their socks. BRIAN KENNY: Elizabeth Keenan, thank you so much for joining me on Cold Call. How did they get people to even take that leap? However, they also wanted very much to donate socks with those same properties. Elizabeth Keenans research explores individuals pro-social choices and behaviors within the domains of charitable giving and environmental sustainability. But in the case of Bombas, yes indeed, its exactly how they start. BRIAN KENNY: Do you think that this idea, this model of buy one, give one is going to become more prominent, particularly in a world where society is expecting a lot more of business? Their strategy was to create the perfect socks with different elements such as a y-stitched heel , a honeycomb arch support , a seamless toe , a blister tab , and stay - up technology . The reason I love doing that is the local nature of our mission, which is really powerful. BRIAN KENNY: If you enjoy Cold Call you might also like our other podcasts: After Hours, Climate Rising, Skydeck, and Managing the Future of Work. Money-making lessons from the ones who have already made it, I write about the marketing strategies that made brands millions. Bombas, a premium sock company that gives away a pair for every one it sells, has recently hit two major milestones: It exceeded $100 million in revenue in 2018 and has sold 20 million and given . ELIZABETH KEENAN: Exactly. Are they going to tell their friends about it without us having to raise money for marketing? Heath recalls. Our thought is, Let's take a slightly lower margin if that translates into more sales, the cofounder explains. ELIZABETH KEENAN: Thank you. BRIAN KENNY: And so, this is part of what the case identifies as the buy one, give one model. In the past year, Bombas donated more than 40 million pairs of socks and shows no sign of slowing down. You can easily tell the story about both the need in homeless shelters, as well as the connection of these products in terms of what you do every day. Buy a pair of socks for yourself, and Bombas donates a pair to someone in need via their community partners. [CDATA[ But in the case of TOMS, Warby and even Bombas, the items for the most part from the beginning, at least had been the same product they were selling, they would also then donate. BRIAN KENNY: I dont think Ive ever paid that much for a pair of socks. It's often a challenge for a marketer to weave both mission and product into the messaging. They use these posts to engage with customers who share in their dedication to a social cause, as well as reinforce the feeling of charity that is tied to making a purchase through their service. In the venture world thats like a bad word. I dont know if thats a good thing or a bad thing. They dont thump their chest about it. Eight years later, Bombas had established itself mostly through online marketing as a preeminent . Why? Its part of the DNA, as you explain, and from the ground up, thats what they were based on, whereas, other organizations come into purpose later in time. BRIAN KENNY: Yeah, its amazing. ELIZABETH KEENAN: Absolutely. It also could be set up in such a way that we are pricing near or below the price of performance socks, but allow us enough margin to actually deliver on the mission of donating socks as well. Get Scrappy: Smarter Digital Marketing for Businesses Big and Small. But Ive increasingly become interested in looking at how firms will use pro-social aspects of their companies to attract consumers in. And I asked that of several students. The year is 2013. ELIZABETH KEENAN: In this case, it seems to have been a good thing. When a new team member joins Bombas, they become a part of the family, or hive, as the company would say. Socks are a small item but can have a big impact on someone's life.. Theyre small animals that work together as a hive to make their world better. And so, what will become important is not so much the differentiation or the claim to this kind of a model, but instead the care with which you execute that model and the authenticity with which you approach it. As of late 2021, which is about the time of the case, they had crossed nearly 250 million in annual revenue, had 180 employees and had donated their 50 millionth pair of socks. In the beginning, David would go out and listen to peoples stories, which invoked a sense of empathy inside him. The emails were well-received (boasting an enormous open rate of 60 to 80 percent), and strengthened a connection between the brand and its followers. People started flooding customer service with questions about where their socks were. Bombas took the successful buy one, give one social impact model of companies like TOMS, Bixbee, WeWood, and Figs and applied it to socks. This not only results in a company that creates positive results for communitiesand the world, but also a company that consumers will be more likely to take notice of. And I dont say that in a pejorative way, I just say its a different approach. So initially all of their ads pretty much were product focused, given that they had needed people to become aware of the fact that they had socks and thats what they were selling. So were at a point where homelessness is increasing and access to resources, like donations and money have been decreasing because everybody is starting to pull inward and protect against this pandemic. David gained insight from meetups, charity events and gatherings. And so it was clear that there was a gap and a need in that space. And Bombas at the time of the case was selling pairs for an average of $12.50, which is a lot. BRIAN KENNY: So, I think thatll be an interesting dimension to get into. How can I solve this problem at scale? Heath wondered. So yeah so, the buy one, give one model which Bombas refers to as one purchased, one donated is a model in which companies will sell products, and for every product they sell, they donate one of those items to somebody in need or an organization in need. Bombas promotes their network of 1,200 giving partners through their website, as well as on social media. Having employees that are truly engaged with the mission will add credibility to your brand. Its often a challenge for a marketer to weave both mission and product into the messaging. ELIZABETH KEENAN: Thank you for having me. One of our giving partners in North Carolina said that in the four years we've given them socks they've been able to save enough money to send two kids from their community to college. The partnerships and ripple effects scale impact. How do you get the socks into the hands of the people who need them? To ensure that Bombas customers are satisfied with their purchase, its socks come with a 100% Happiness Guarantee which assures customers that the Bombas Customer Happiness Team will be happy to assist them with any issues or questions. Theyve taken these values and transformed them into a $50 million business. BRIAN KENNY: And certainly those are things that people cant donate and places that accept donations, cant take those as secondhand items. I had to focus on refining the product, the brand, the story and the mission, Heath recalls. That means their customers can purchase a pair of socks, knowing that it will have an effect locally no matter where they live. If that doesn't align with you, then we're going to have to walk away.. Bombas does a really good job of promoting their brand mission to customers, and this is supported further by extending their values to employees. (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.3"; fjs.parentNode.insertBefore(js, fjs);}(document, 'script', 'facebook-jssdk')); As Bombas grows, so does its impact and aspirations. People living on the street often keep their shoes on at night for fear that they might be stolen. Heath learned about how important socks were to homeless people in 2011. And so, theyve tried to control that growth as much as possible with the vision and the goal of rather than growing the fastest, this is quoting Heath actually that rather than growing the fastest, to stay in the game the longest. And they gathered some information around the fact that often used socks are not donated to homeless shelters, or accepted for hygiene reasons. We started getting people posting online, saying, Bombas is stealing our money. BRIAN KENNY: Yeah, and maybe not only consumers these days, but employees too. Bombas discovered that their donations create extra time and money for charities. BRIAN KENNY: Yeah. The pandemic has also served to amplify Bombas' cause-marketing strategy. And so theres partners and this seems to be a theme throughout all of the relationships they have with their giving partners is that these partners often become collaborators in helping them better understand the space that theyre trying to serve. This is a huge recruiting tool. Without the strong mission statement and value proposition, Bombas would not have been able to accomplish this. And the one day when I havent done all of my laundry and theyre not there, I am very sad. It could be related to the brand and things of that sort, but in this case they were selling something more and they were selling a social benefit. Since socks are a wear-through item, theres a lack of them at donation centers. One hint. They arent the most inexpensive product to buy. Once customers find an emotional attachment to your brand, theyre likely to buy more, care less about price, recommend you to everyone and most importantly, make you millions. YouTube Channels. Basing your business model on philanthropy is a great way to garner attention from people who actively seek out opportunities to support a cause through mindful commerce. I'd say our very best marketing, from both a creative and performance standpoint, is where we are truly able to marry both mission and product. When Bombas does a campaign about hitting a donation milestone, customers prioritize the giveback. It's a different emphasis at different times of year, Heath says. "It is especially so during times of rapid change in the world whichrequires employees and leaders within an organization to adapt and contribute in meaningful wayswhile still remaining true to who they are as a brand. bombas.com Top Marketing Channels. The concept for the company came about after the founders learned that socks are the most requested item in homeless shelters. Is there a process that supports and strengthens this, or does it happen as a result of something else? Consumers are trying to find businesses that they can feel good about buying from. And socks, really themselves dont last very long, and sooner or later we have a hole in the heel or the toe and they fall apart. So they have an amazing marketing strategy (business model) and high-quality socks, now what? Read insights from 1,218 consumers around the world to learn what subscribers really want from an SMS experience. And together they started doing some research into why socks are so limited in homeless shelters and whatnot. Heath had the idea in February, 2011 but Bombas didnt open publicly until August, 2013. ELIZABETH KEENAN: It definitely played a role. Two coworkers David and Randy decide to start a sock company called Bombas after viewing this Facebook post: Socks are #1 requested item in homeless shelters. "The more a brand like Bombas can showcase behaviors that support Brand Culture Thinking, the more likely they are to achieve the successes of Brand Culture - it becomes a virtuous cycle of identifying needs, taking action and celebrating the results. Rather than having to "figure things out," who Bombas had become as a brand and culture led to a natural response. A really successful businessman once told me something that blew my mind, If you know what you are doing, you can even sell sand to an Arab.. And I think the components that really matter will be the product and whether or not you can actually sell a high quality product at a price that allows the margin for you to make the donation and also to manage and control the growth of the donation side of your business. Bombas Shopify-based Bombas began its DTC journey by selling socks. It's prominent to say that, Bombas as a brand is heavily dependent on mission-based marketing strategy. It never ceases to amaze me the big difference we can make, with just a pair of socks.. What are some of the important ways your marketing has evolved as the business has grown? This focus on social issues helped Bombas connect with their customers and solidified their place as a mission-based eCommerce brand. I want to talk about that a little bit later, and again, with the attitudes of gen Z and millennials in mind. Abstract. It should be a natural reflection of who you are as a brand. Bombas Socks are made of Peruvian pima cotton, which helps feet stay warm in winter and cool in summer, and include exclusive features such as a blister tab, a y-stitched heel, honeycomb support system for the arch of the foot, and stay up technology. Bombas pride themselves in having engineered the perfect pair of socks with comfort at the top of their mind. Bombas used their social media presence and marketing to find a group of people who shared their passion. After releasing a performance line and putting out related media, consumers value quality over. And traditionally we do that by increasing quality. Huyett:One of the biggest things we did very early on was making sure that we looked at every channel on a standalone basis and overall blended performance. The company is fairly young (2013), but it encapsulates so well the long term results-driven power of Brand Culture. The culture and the community reflects the good work theyre doing, and it reflects inside of what theyre doing. Heath invested $18,000 of his own money to develop a minimum viable product (MVP). Working in collaboration with Tinuiti, Bombas transformed their email strategy from "batch and blast" to sophisticated one-to-one marketing that effectively showcases the brand's extensive line of socks and unique charitable mission. This business showed me that the true gift and purpose in life is to give back. / Can Bombas Reach New Customers while Maintaining Its Social Mission. And I think either approach could work, especially when you start with this dual mission. They're out of business. It's not having to necessarily go out and buy those unnecessary items that then we can start to create change.. And so dramatic increases in price for that type of product, they felt would work better than if they were working in a space where the base price of that product had started quite high already. Where homelessness might not affect a customer directly, supporting LGBTQ+ rights or donating to underfunded schools or a local womens shelter might. And in fact, the name Bombas is Latin for bees, and its beehives and bees work together in concert. Is ita concept that can continue to see success if done correctly or is it tired and overdone? The enthusiasm bolstered Bombas sales as well, as much as 40 percent during some weeks during the pandemic. And they reached out and they called Hannahs Socks and asked, Do you want some socks? And they said, Wait a minute, youre just offering us socks for free? And they said, Yes. And so, that was one of their first giving partners, but it wasnt just a giving partner, it became a collaborator and they ended up sharing knowledge, important knowledge about the space of homelessness and the need for items like socks and what aspects and features of those socks would be important. "2020 for Bombas was the year of what we call 'Brand Culture Thinking,'" says Keown. And at each major milestone, theyve continued to make these films. Bombas: the preferred socks of True Believers. Socks are the number one most requested clothing item at homeless shelters, David Heath, cofounder and CEO of Bombas, tells We First. The act of sharing these accomplishments also reinforces the sense of happiness and achievement that purchasing a pair of Bombas socks provides. Todays corporate leaders realize that purpose is essential to starting and growing a business. Do you think that the mission, and this would go beyond Bombas, but any firm that is focused on a purpose in this way, and that is built around a purpose, does that give them an edge in terms of attracting talent? When the team can talk honestly about the values their company promotes, it builds credibility and trust in the brand. I cant let you go without asking one last question. This lens of Bombas' strategy shows the evolving role of marketers, particularly in an era of technological revolution and growing accessibility of data. ", Bombas' Brand Culture Leads to Brand Love. ELIZABETH KEENAN: Were most of them here? After 30 days of the campaign, they reached $150,000. Our mission is the main driver of our success today.. Bombas is also looking for new ways to give back, like getting involved in policy, opening homeless shelters and expanding into new product categories. And once you put that pair on, its really hard to actually start putting on any of your other socks. And many different companies have engaged in this space. Jamie Siminoff says to remember to focus on building a great business regardless of the market. The two that really come to mind beyond Bombas that are pretty well known in this space would be TOMS Shoes Company and Warby Parker. Us humans, we love to make ourselves feel good and happy. I think its a lot harder to start marketing the social side of your business later. Again, Brand Culture goes beyond public perception. Mission-based marketing is dependent on a cause that helps customers feel like theyre making a real impact. To take advantage of the low prices, Bombas did some bargain brand-building on Facebook, Instagram, and other digital channels, shifting its messaging to talk about its charitable work--the.

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