And I think either approach could work, especially when you start with this dual mission. I don't believe you can build a successful brand on a mission alone. Having employees that are truly engaged with the mission will add credibility to your brand. And you could see this controlled growth, both in their advertising and marketing, as well as in terms of product line expansions and extensions. Today on Cold Call, weve invited Professor Elizabeth Keenan to discuss her case entitled, Bee-ing Better at Bombas. It all felt so incredibly tone deaf.". Lead with your purpose. ELIZABETH KEENAN: Exactly. In the venture world thats like a bad word. 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. . Emotionally connected customers are 52% more valuable than highly satisfied ones.. And I think Bombas has recognized that from the beginning, controlled growth has really served them well. "It allows the brand to get engaged (participate) and activate (in a unique "Bombas" way) to both create impact and stand out in their brand category. El informe de Mercado Neumticas De Doble Diafragma Bombas proporciona informacin de expertos sobre el estado del mercado, los prximos pronsticos, las oportunidades de desarrollo y los actores clave en funcin de medidas de investigacin integrales. 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. What do you think about startups utilizing the Toms one-for-one business model for new ventures? BRIAN KENNY: So, what was their go to market strategy with a $12.50 pair of socks? When you talk to Bombas and the staff and the employees at the company, you can tell this is something that they care about and they value deeply. Opinions expressed by Forbes Contributors are their own. While doing the research, building a network and defining your brand identity is essential, it takes money to start most businesses. Bombas makes socks. How did they turn an idea into a multimillion dollar social enterprise? The other part of their strategy was in terms of their marketing. My eyes and ears were constantly looking for problems to solve utilizing business. We hear so often, cases that are taught here, about companies that start out with one competency and then develop another competency along the way, and it creates a whole new set of opportunities for them. So, they created Bombas. He is the Chief Brand Strategist at Brand Driven Digital, an educator at the University of Iowa, and host of the On Brand podcast. I saw companies like TOMS and Warby Parker doing the 1-for-1 model and said, Maybe I can create a company where we donate 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. The process was so exciting. These social media posts, shares, and conversations all act as social proof of the values the brand promotes. 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. ELIZABETH KEENAN: I hadnt, but I have now. Bombas Shopify-based Bombas began its DTC journey by selling socks. As Bombas grows, so does its impact and aspirations. BRIAN KENNY: So ,lets talk a little bit about the fact that theyve now started to look at branching into other product offerings. ", Bombas' Brand Culture Leads to Brand Love. According to the Harvard business review, When a company helps its customers to fulfill deep, often unconscious desires, the customers go from being fully satisfied to emotionally connected brand ambassadors. BRIAN KENNY: Weve had a lot of cases on the show in the past about companies that have adopted a purpose. So maybe our listeners would want to hear a little bit more about other examples of firms that have adopted this model. 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. Again, Brand Culture goes beyond public perception. 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. Are they going to tell their friends about it without us having to raise money for marketing? Heath recalls. Most of them are here. According to Keown, when an organization's brand culture is healthy and thriving, the brand wins itself a competitive advantage: employees become true believers and super advocates for the brand's purpose, with the potential to engage consumers and other external audiences in truly authentic ways. But maybe you can start for people who arent familiar with Bombas, now they know they sell socks, but how was the company created and why did they land on socks as the central product? That means their customers can purchase a pair of socks, knowing that it will have an effect locally no matter where they live. And so, the case, what it does is it centers around the companys success so far and the pace of growth that would best allow them to continue to effectively deliver on the two missions that they have moving forward. There are low cost, bulk products like a 12-pack of Hanes socks for $10 at Costco. Then there are niche socks for hiking, running, cycling and other sports. 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. In other cases, they donate other items that arent exactly comparable. Bombas is also looking for new ways to give back, like getting involved in policy, opening homeless shelters and expanding into new product categories. One-for-one brands workonly if customers buy into the cause. They arent the most inexpensive product to buy. And companies like Bombas have found a way to do this that seems sustainable, where they can actually do well and do good at the same time. Does that not create a whole new set of challenges for them to face as they move into other product lines? Bombas pride themselves in having engineered the perfect pair of socks with comfort at the top of their mind. And the one day when I havent done all of my laundry and theyre not there, I am very sad. While the majority of homeless men, women, and children are living in or around metropolitan areas, working with partners across the U.S. gives Bombas a way to make an impact country-wide. 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. But maybe you can talk a little bit about why quality mattered in this case. BRIAN KENNY: And so, going back to gen Z for a minute, that to me just sounds so authentic. They dont thump their chest about it. BRIAN KENNY: Of course. #BeeBetter by @taza, A photo posted by BOMBAS (@bombassocks) on Sep 9, 2015 at 1:34pm PDT, TriplePundit said it well, recent research indicates that 80 percent of consumers are willing to buy a product from an unknown brand if it has strong social and environmental commitments, conscious consumerism is on the rise and this means that Bombas marketing strategy is likely to pay off.. The enthusiasm bolstered Bombas sales as well, as much as 40 percent during some weeks during the pandemic. Revenue: $237M ( Source) Bombas is an apparel brand that is renowned for its socks and philanthropy (a unique combo to say the least). Heath was looking to talk to people in the fashion industry or people who had experience sourcing and manufacturing and figure out how you get connected to factories. he explains. Now I get it, thank you. help with returns or exchanges, and listen to feedback to inform better company strategy. Heath, also the brand's CEO, recalls back to early March of this year, when the COVID scare was starting to really take hold of the public. But at least for Bombas customers, buying one pair of socks and donating a pair to someone in need makes them feel good. The pandemic has also served to amplify Bombas' cause-marketing strategy. By making their employees a priority, Bombas is fostering an internal community of like-minded individuals, as well. The name, Bombas, is Latin for "bumblebee" bees work together to make the hive a better place. This helps drive the mission home for everyone involved, and solidifies Bombas as a socially conscious brand. Well, not quite. First, I was drawn in by their mission: for each pair of socks that Bombas sells, the brand donates a pair to the homeless. ELIZABETH KEENAN: So, Im not sure that the buy one, give one model will necessarily become the norm in the space of trying to do well and do good. My name is Brian Kenny, and youre listening to Cold Call on the HBR Presents Network. And just the reaction alone of somebody looking at him and saying, how did you know, how did you know this is exactly what I needed, convinced him that this was an important space. In fact, that was around the time that they had finally donated their one millionth pair of socks. I want to talk about that a little bit later, and again, with the attitudes of gen Z and millennials in mind. You have to have a good product., After extensive research, David found a gap in the market. The 4 P's of marketing are price, promotion, place, and productthe four key factors every marketer should use to guide their campaign strategy. Everything looks simple and easy to analyze. Bombas works withover 1200 partnersin every state through their donation programs. How can I solve this problem at scale? Heath wondered. Excited, they get to work to design a high-quality product with a consumer-focused approach and best quality cotton. Key lessons from David Heath for entrepreneurs on how to gain competitive advantage: Heaths journey and Bombas success offers valuable lessons for entrepreneurs looking to scale impact and profits. 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. Balancing priorities of product and purpose: The two pillars of our company are a high quality product and a great mission, Bombas cofounder says. Business Insider Meet Bombas, the cult-favorite sock startup that's donated 25 million pairs to homeless shelters since launching in 2013 News Sep 13, 2019 Business Insider The best no-show socks for men and women News Sep 5, 2019 Entrepreneur Magazine Conscious Capitalism: Are You Driven By More Than Just Money? This business showed me that the true gift and purpose in life is to give back. Theyve learned about the socks, but theres also a whole bunch of other items that they are now recognizing are critically important to homeless people. So, my research, as you mentioned, revolves around pro-social consumer behavior, and a lot of that centers on how nonprofits can best engage donors to give to them charitably. Not having access to socks presents health risks for homeless people. The Bombas Marketing Team is responsible for bringing in new customers and growing their relationship to the company and its products. The messages we convey will continue to be based around those two pillars, though we'll evolve each one over time. They're not responding to us. Not bad for a brand whose founders (David Heath and Randy Goldberg) started out just wanting their driving purpose to be getting socks to the homeless population. Cleaning companies, bed linen companies and others reached out to them asking for advice on how to get product donations to the people that need them most. 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. The act of sharing these accomplishments also reinforces the sense of happiness and achievement that purchasing a pair of Bombas socks provides. But to widen that market, Bombas needed a way to make the buying experience as gratifying as possible. Bombas promotes their network of 1,200 giving partners through their website, as well as on social media. One hint. And once you put that pair on, its really hard to actually start putting on any of your other socks. We achieve happiness by fulfilling often unconscious emotional desires like standing out from the crowd, a desire to be who you want to be, to protect the environment, and so on. Learn more about the email marketing strategy of Bombas. Shane Pittson, vice president of growth at Quip, says that launching as a D2C allowed the oral hygiene provider better "data and perspectives" for conversations . Once they could scale on advertising, they started to launch into not just social media, but then they got into radio and podcast. Valuation: $1B ( Source) Est. In fact, some companies reached out to Bombas about co-branding products and asked if they could get a discount if they didnt donate a pair with every one sold. Their R&D efforts led them to create an entirely different sock for donation, one that specifically meets the needs of people who dont have the privilege of washing their socks every day. By 2021, it had become one of Americas most visible buy-one-give-one companies, with over $250 million in annual revenue and 50 million pairs of socks donated. Partners dont always seek purpose. Simple, concise and clear. 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. 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. Therefore, their customers arent just fully satisfied with the brand, they are emotionally connected. This will help them buy into it, and be an advocate for you. Make it authentic, straightforward and sticky. While Bombas Socks certainly utilizes more traditional product promotion on its social channels , Ultraviolet Ankle socks for women are here. But also I think its so timely given what I sort of teased in the introduction there about the importance of purpose in organizations today and Bombas is all based around that idea. A company doing exemplary work marrying purpose and product is Bombas. You are digital natives and you are the most diverse generation ever. They instead connected with their audience to let them know how Bombas was able to partner with groups that work with the homeless and with other companies to make a reaching, positive impactall thanks to the support of their customers. The State of SMS Marketing in 2023 report is live! Something else is at play here. They turned to crowdfunding to find out. They may adopt it over time and due in part to any number of pressures, whether external or internal that drive the need for focusing in on a mission-driven purpose. 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. And you can actually leverage both to help the other. By utilizing the direct to consumer model theyre able to cut out the middle man. This is how Bombas has been able to 'win inside to win outside,' even in 2020.". Theyre passionate about providing not only the best experience for their customers, and the homeless community they support, but also supporting larger network of social causes. So, this has been a great conversation, Liz. ELIZABETH KEENAN: Thats a really good question. The other thing that I think is important for listeners to take away is that Bombas socks are quite comfortable. More about Nick. . Marketing at Bombas. ELIZABETH KEENAN: That is one way for growth, but it could be a risky approach for any company. Talbot:Your focus on product and mission. Bombas focused all of their email communication at that time on giving. I was always exercising my entrepreneurial muscle, he says. And so a lot of organizations and other companies, brands were turning to them and saying, hey, we have inventory that we want to now donate because of whats going on, but we dont know how to do it. Its important to Bombas that theyre helping their community regardless of its direct involvement with their brand mission. View most popular send days, email frequency, and recent email campaigns from Bombas. What do socks have to do with brand sustainability and overcoming challenges? Liz, thanks for joining me today. From the start, Bombas' co-founders knew an inspiring mission wouldn't be enough to drive sales. Theyre small animals that work together as a hive to make their world better. Data science enables marketers with insights that lead to improved efficiency and a deeper understanding of the consumer journey, resulting in higher returns and profitability. Huyett:We've focused as we talked about earlier on both product and mission. This lens of Bombas' strategy shows the evolving role of marketers, particularly in an era of technological revolution and growing accessibility of data. 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. Its a great place to work. That kind of employee advocacy can carry more legitimacy than any traditional marketing from Bombas. I dont know if thats a good thing or a bad thing. Opinions expressed by Forbes Contributors are their own. Socks are the number one most requested clothing item at homeless shelters, David Heath, cofounder and CEO of Bombas, tells We First. 1. Socks are a valuable offering for homeless people, yet, are they really changing lives? You mentioned earlier that they had relationships with a couple of retailers, but theyre still doing everything primarily through their website and direct to consumer. They, at this point have in 2021, 3,500 giving partners. Adapting to Industry Shifts with David Bates, How Leaders Create Culture Virtually with David Burkus, Using AI to Simplify Logo Design with Richard Lau, Building a Social-First Brand with David Brickley, Focus Your Content Marketing with Steve Pockross, Brand Now: How to Stand Out in a Crowded, Distracted World. When the company. If that doesn't align with you, then we're going to have to walk away.. It was a nightmare. Heath says. The name Bombas came from Heaths partner Aaron Wolk and is derived from the Latin word for bumblebee bees. And so, one change to the commercial side will help you to build and grow your giving side and vice versa. Feel free to stay in the loop if you want to use this knowledge to reach one step closer to your own financial freedom. Nick Westergaard is a strategist, speaker, educator, and author of Brand Now: How to Stand Out in a Crowded, Distracted World and Get Scrappy: Smarter Digital Marketing for Businesses Big and Small. And so doing, it's become a $100 million brand. Bombas: helping in aerial flight. According toTriplePundit,research indicates that 80 percent of consumers are willing to buy a product from an unknown brand if it has strong social and environmental commitments, conscious consumerism is on the riseand this means [sic] that Bombas marketing strategy is likely to pay off.. They decided to donate a pair of socks for every pair sold. They did that by taking socks, a clothing item that's an afterthought for many people, and elevating them into something that customers would talk about with friends by attaching a social mission. And so, they literally Googled how to donate socks. The Bombas donation sock has features like ananti-microbial treatment and reinforced seams, designed in partnership with their giving partners. ELIZABETH KEENAN: Absolutely. And what they ended up doing is recognizing that, hey, you know what? Find them on Apple Podcasts or wherever you listen. And so Bombas became a resource for these other brands to help teach them, how do we start to distribute items. "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. Bombas 4Ps marketing strategy: Production Strategy: Bombas provided clients with the most comfortable socks. Internal true believers naturally yield external true believers, and that's how brands become emotionally connected with their stakeholder audiences. "When it came time to take action, we were just able to do a lot more of what we've already been doing, which is not only get socks and t-shirts to those in need, but then to team up with our partners who were reaching out to us, like Cleancult. And in fact, the name Bombas is Latin for bees, and its beehives and bees work together in concert. Since day one, we've focused on marketing profitably, which has served us well over the last few years. 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. Its a luxury item for over 640,000 people who experience homelessness in the U.S. annually.. It boosts the reach of their message and supports the idea of Bombas as a socially conscious brand. They have a top-notch customer support team to ensure all customer queries are resolved immediately.They have an active presence on Facebook, Twitter, Pinterest, and Instagram. 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. And brand managers who might be listening should know that youre just getting started. My next question was, Once I get these products on everyone's feet, are they going to love it enough to come back? 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. Think about it. BRIAN KENNY: Yeah, thats awesome. Two years later, the pair launched the direct-to-consumer retailer Bombas in New York City, with a simple mission: make high-quality socks, sell them online, and for every pair of socks sold,. 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. And at that point they created a video about their mission and the founding of Bombas and how it started. They also needed to determine what role that mission should play in their marketing. Getting this buy-in from team members is important for a mission-based company like Bombas because they act as evangelists for the brand. Eight years later, Bombas had established itself mostly through online marketing as a preeminent . "2020 for Bombas was the year of what we call 'Brand Culture Thinking,'" says Keown. 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. Consider Bombas, a company that donates a pair of (well-designed, somewhat pricey) socks to homeless shelters with every pair sold. 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. David Heath and Randy Goldberg founded Bombas in 2013 to serve two missions: to deliver the "best socks in the history of feet," and to donate socks (the most requested item in homeless shelters) to Americans experiencing homelessness. That said, purpose alone won't make your business successful. Crowdfunding: Introduce your mission and product with a fundraising campaign Their product helps customers make an impact on a cause that they are passionate about. And what popped up was an organization called Hannahs Socks and Hannahs Socks donated socks. And were going to talk about that a little bit because they arent the cheapest. When the team can talk honestly about the values their company promotes, it builds credibility and trust in the brand. In fact, you think corporations are causing most of the problems in the world today. Bombas has experienced rapid growth and overarching success; however, there have been bumps in the road that tested the company. 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. The COVID-19 pandemic has seen many a company scrambling to sustain customer engagement and sales. I started giving out socks to homeless people on my way to and from work in New York City, Heath says. And so they didnt really start to focus on sharing that story with the public until around 2016, when they created videos. It should be a natural reflection of who you are as a brand. BRIAN KENNY: Lets talk a little bit more about their socks, which weve already acknowledged are not the least expensive socks you can buy. 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. At Bombas, the direct-to-consumer apparel manufacturer, CMO Kate Huyett looks for ways to effectively marry the two. When you're a one person show in the early days with no cash or resources, and the only time you have to work on it is from 6:00 P.M. until midnight and on weekends, you have to grind it out, the cofounder says. Bombas built a successful eCommerce company selling a single type of product. 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.. He became incredibly depressed, as most people would, then turned to alcohol and eventually drugs, Bombas cofounder says.