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. 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. "Companies were trying to figure out what to do to boost business," says Heath. BRIAN KENNY: I have to ask, are you a customer of Bombas? Simple, but when you've got different channel managers in their own lane, it's important to have a good feel for how all the channels are working together. Bombas was started in 2013 with a dual mission: to deliver quality socks and donate much-needed footwear to people living in shelters. How did they turn an idea into a multimillion dollar social enterprise? ELIZABETH KEENAN: Once they connected with Hannahs Socks, word of mouth spread relatively quickly, and the number of giving partners they had grew to a point where they had a waiting list. 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. ELIZABETH KEENAN: So, that moment, I think spoke to them and made them realize we may be onto something here. 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 . And the one day when I havent done all of my laundry and theyre not there, I am very sad. ELIZABETH KEENAN: Bombas was founded in 2013 with a dedication to two goals. In other cases, they donate other items that arent exactly comparable. It helps them feel motivated and personally connected to the mission, Heath says. So theyve donated like millions of socks. Some of that money went to purchasing the first product run, some of it went to building a website. It is a sock firm to assist persons who are struggling financially. And in fact, the name Bombas is Latin for bees, and its beehives and bees work together in concert. Exactly. to address the pandemic and "move the needle," Bombas was showing it was able to remain true to its brand purpose, Brand Culture, and sustainability. How do you even begin to scale an effort like that? Drill down into the main traffic drivers in each channel below. To drive purchases, the brand's marketing campaigns focus on the positive impact and quality of their product. To do damage control, Bombas sent out a blanket email saying that they were going to refund everyones order, give them a gift card for the same amount and hope that they come back. Now, lets take a deeper look at Bombass strategy that made them millions and how you can do the same. Another fun way we're able to incorporate our giving efforts into marketing is with the help of audio partners, such as a podcast host who discusses the mission in a way that's personal to them. 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. The COVID-19 pandemic has seen many a company scrambling to sustain customer engagement and sales. The Bombas donation sock has features like ananti-microbial treatment and reinforced seams, designed in partnership with their giving partners. Bombas works withover 1200 partnersin every state through their donation programs. Consider Bombas, a company that donates a pair of (well-designed, somewhat pricey) socks to homeless shelters with every pair sold. ELIZABETH KEENAN: Thats a really good question. So, every time I open my drawer of socks, I look. It never ceases to amaze me the big difference we can make, with just a pair of socks.. This is how Bombas has been able to 'win inside to win outside,' even in 2020.". I think its going to be one of the approaches that an organization can take. ELIZABETH KEENAN: It definitely played a role. In 2018, Bombas underestimated their growth in revenue by around 50%. I know Ive talked to several people. Bombas 4Ps marketing strategy: Production Strategy: Bombas provided clients with the most comfortable socks. 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. help with returns or exchanges, and listen to feedback to inform better company strategy. 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. Harvard Business School assistant professor Elizabeth Keenan discusses the case, Bee-ing Better at Bombas. They haven't shipped my order. Then Business Insider did an article about it. Bombas associated their brand with a great cause of helping someone in need which not only gives the customer a feeling of accomplishment about the purchase but also builds a positive brand perception. So maybe our listeners would want to hear a little bit more about other examples of firms that have adopted this model. They keep costs down by limiting sizes and making larger orders. Partners dont always seek purpose. 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. The drive to solve those problems in real time motivated me., Before he started Bombas, Heath was, blindly focused on trying to make as much money as possible. They, at this point have in 2021, 3,500 giving partners. 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. And so Bombas became a resource for these other brands to help teach them, how do we start to distribute items. 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 . In fact, actually, Ive, Ive spoken to a number of Bombas sock wearers just like you have, and interestingly enough, many of them didnt actually even know that they donated socks. ELIZABETH KEENAN: Thank you for having me. By creating a product that is engineered to fit their mission as well as the customers needs, Bombas has grown to $50 million in sales in just 5 years. 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. The concept for the company came about after the founders learned that socks are the most requested item in homeless shelters. And you can feel good about putting them on. So they have an amazing marketing strategy (business model) and high-quality socks, now what? When a new team member joins Bombas, they become a part of the family, or hive, as the company would say. It's often a challenge for a marketer to weave both mission and product into the messaging. 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.. BRIAN KENNY: Wow. It costs us three and a half million dollars, Heath says. Prior to learning about the individual circumstances, a lot of people think that homeless people are at fault for getting themself into that unfortunate position and that it could never happen to them, David explains. Get Scrappy: Smarter Digital Marketing for Businesses Big and Small. Shop them at http://t.co/gN8aHSTz9l pic.twitter.com/9z0bGPI4Rx, At the same time, its utilizing less in-your-face brand marketing through the sharing of other brands content. Thats a lot of socks and a lot of good that theyre doing, right? Where homelessness might not affect a customer directly, supporting LGBTQ+ rights or donating to underfunded schools or a local womens shelter might. In the process, theyve built a thriving, $50 million/year business. Siminoff and Bezos discovered they both put their email addresses on every product . Their product helps customers make an impact on a cause that they are passionate about. Other brands just wanted to tout their organization's COVID response. And that would be, what do you want our listeners to take away from this case? 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. Max Rice is Jilt's co-founder and CEO at Jilt. So why dont we just dive in? It all felt so incredibly tone deaf.". For every pair of socks bought from this firm, another pair is given to a person in need. . Paul Talbot:Bombas is now more than six years old. As I mentioned earlier, nobody had innovated in the space of socks for quite some time. That means their customers can purchase a pair of socks, knowing that it will have an effect locally no matter where they live. For example, Fab.com went bankrupt and Gilt Group sold for a fraction of what its last valuation was. BRIAN KENNY: Im sorry, that explains the title a little bit. 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. He became incredibly depressed, as most people would, then turned to alcohol and eventually drugs, Bombas cofounder says. 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. ELIZABETH KEENAN: That is one way for growth, but it could be a risky approach for any company. This business showed me that the true gift and purpose in life is to give back. Key 1: Bombas' story is their selling-point The story of Bombas is about more than just socks. The two strategies they use to increase their average cart value to boost revenue. Once they had their sock tech figured out, Bombasstill had to answer the question of whether socks for the homeless would be a mission that resonates with consumers the way glasses (Warby Parker) or shoes (TOMS) have been. By making their employees a priority, Bombas is fostering an internal community of like-minded individuals, as well. 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. 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. In the beginning, David would go out and listen to peoples stories, which invoked a sense of empathy inside him. Last year they donated over 10,000 volunteer hours and hosted roughly 15 giving events per month with local partners in New York. Recently, Bombas added pima cotton T-shirts that they describe as, the first shirt that you want to wear out of the wash. Next on the list is underwear, which is the second most requested item at homeless shelters; T-shirts are third, Heath shares. But maybe you can talk a little bit about why quality mattered in this case. One hint. ELIZABETH KEENAN: Exactly. This simple fact was the inspiration behind Bombas Socks, a startup that equips the buy-one-donate-one business model and pairs it with the perfectly designed athletic sock. Revenue: $237M ( Source) Bombas is an apparel brand that is renowned for its socks and philanthropy (a unique combo to say the least). "But consumers were entirely focused on survival needs. BRIAN KENNY: Lets talk a little bit more about their socks, which weve already acknowledged are not the least expensive socks you can buy. Im your host, Brian Kenny, and youve been listening to Cold Call, an official podcast of Harvard Business School, brought to you by the HBR Presents network. And that means that you, my friend have leverage. How does this influence your marketing? Today on Cold Call, weve invited Professor Elizabeth Keenan to discuss her case entitled, Bee-ing Better at Bombas. 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. Once it'd been scaled to a place where it could merit a full-time hire, we'd bring someone on internally. ELIZABETH KEENAN: No, they dont. This was great. "For the last seven years, we'd been building a network of over 3,500 'giving partners' here in the United States that specifically work with the homeless and those at risk," says Heath. Im going to ask you to start by telling us whats the central issue of the case, and whats your cold call that you use when you start the case in the classroom? Whats one thing youd like them to remember? The company is fairly young (2013), but it encapsulates so well the long term results-driven power of Brand Culture. (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')); ELIZABETH KEENAN: So, I first heard about Bombas actually from one of my students in class, several years back had mentioned that Bombas, they had worked for Bombas and understood what my interests were and thought that I would really like this company. If that doesn't align with you, then we're going to have to walk away.. Socks are typically an inexpensive item of clothing, but the founders needed a price that would allow them enough margin to deliver on their social mission. 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. You are digital natives and you are the most diverse generation ever. The Bombas Marketing Team is responsible for bringing in new customers and growing their relationship to the company and its products. I have three pairs and Im constantly washing them because I want them available. Buy one, donate one that was their motto. 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. 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. Having a good pair of socks on your feet hopefully translated into you feeling valued and dignified, Heath says. Now it seems to be that having a social purpose, whether its part of a buy one, give one model or other is becoming table stakes these days. Were now at more than 25M pairs donated and this video is still one of our best-performing pieces of creative. "Brand culture is so important for sustainable, whole brands," says Jimmy Keown, VP and Growth Strategy Director atBarkley. 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. And they were the leaders in this space, and in fact, some of the inspiration for the Bombas team to start their business. 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. This helps drive the mission home for everyone involved, and solidifies Bombas as a socially conscious brand. After hearing that socks were the number one most requested item in homeless shelters, the pair decided to do somethingneither had consideredbefore: start a sock company that helps donate to homeless shelters around the U.S. Talbot:Your focus on product and mission. We're setting out to create the first ever consumer brand for the homeless community, Heath says. The other part of their strategy was in terms of their marketing. Their plan was to design the ideal heel, a honeycomb arch support, a seamless toe, a blister tab, and stay-up technology. And after a while, once they could expand advertising even further, thats when they got into print and commercials. ELIZABETH KEENAN: Absolutely. We've worked to reach customers across a wide variety of touch points and that's also meant that no single channel constitutes the majority of our spend, which sets us apart from some of our DTC peers. When they finally had socks to donate, they realized we dont know how to donate these socks. And by the middle of 2014, they had already sold $450,000 worth of socks. But in the case of Bombas, yes indeed, its exactly how they start. I remember this one guy who was in a car accident with his entire family and he was the sole survivor. Buy a pair of socks for yourself, and Bombas donates a pair to someone in need via their community partners. This is what our brand is built on, Heath declares. Its one of the first sets of things you put on every day, and the story still works. Money-making lessons from the ones who have already made it, I write about the marketing strategies that made brands millions. Yet in our inboxes, you'll remember we were all receiving marketing emails saying 'Here's our new spring collection,' or 'Get outside and stay active with our new X, Y, Z shoe.' Opinions expressed by Forbes Contributors are their own. Its important to Bombas that theyre helping their community regardless of its direct involvement with their brand mission. You have to have a good product., After extensive research, David found a gap in the market. How did you hear about Bombas and what made you decide to write the case? 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. Heath watched other online retailers fall short of investor expectations. Most people thought I was crazy., From an early age Heath practiced, the art of not giving an F. While it was intense holding a job and starting the company, Davids entrepreneurial spirit kept him from burning out. I guess that makes a lot of sense. Crowdfunding: Introduce your mission and product with a fundraising campaign ELIZABETH KEENAN: One thing that I think is important to remember in this case is that the model, the buy one, give one model is a very fragile model because you are effectively running two businesses under one roof. At Bombas, the direct-to-consumer apparel manufacturer, CMO Kate Huyett looks for ways to effectively marry the two. Bombas has donated more than 5 million pairs of socks to over 2,500 shelters and organizations across the country. How do they do it? Our Buy a Pair, Give a Pair program has been part of Warby Parker business since our inception in 2010, and its goal is to address the lack of access to glasses and proper vision care affecting . As the buy-one-give-one socks company evolves, it must find the right pace of growth for its business and its social mission. Not having access to socks presents health risks for homeless people. When the company. The first was to create superior socks, and the second was to support the homeless community. Balancing priorities of product and purpose: The two pillars of our company are a high quality product and a great mission, Bombas cofounder says. They already had a firm, they were selling a product or a service, and then they adopted a purpose as part of it and many of them have done a great job now providing for that purpose. 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. He and his team launched an Indiegogo campaign for which they created a video explaining how they would donate socks to homeless people and developed comfort-based improvements. Everyone is onboarded. BRIAN KENNY: Yeah. Our goal was to create the most comfortable socks in the history of feet. In addition to online research, he did a lot of networking. 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. Bombas is not just selling high-quality socks, they are selling that amazing feeling you get about yourself when you help someone(emotions). BRIAN KENNY: Right. Some actually will donate the comparable item. 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. Email us at coldcall@hbs.edu.Thanks again for joining us. This grows the network of like-minded people who share in the passion for social change and helps remind customers why theyve purchased from Bombas in the first place. ELIZABETH KEENAN: Its a funny story. 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. We've significantly built out our internal team - specifically, the actual channel management and creative teams because we ideate and produce the majority of our creative assets in-house. Their impact channels became a platform for other companies trying to make a difference. Think about it. This is a huge recruiting tool. Bombas Shopify-based Bombas began its DTC journey by selling socks. Bombas built a successful eCommerce company selling a single type of product. Since socks are a wear-through item, theres a lack of them at donation centers. And then he went and shared this with a friend and a colleague, Randy Goldberg. I was learning something. 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. We buy limited edition new cars, expensive dresses from big brands, we work and give back just to fulfill those emotional desires and get that amazing feeling about ourselves. 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. Company Overview. We actually have an opportunity here to be a voice for these partners to help highlight the fact that they have now started to lose out on donations, they are financially struggling and theres a greater need. 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. Opinions expressed by Forbes Contributors are their own. 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. The enthusiasm bolstered Bombas sales as well, as much as 40 percent during some weeks during the pandemic. [CDATA[ Us humans, we love to make ourselves feel good and happy. It actually starts with homelessness. Heath feels that in an odd way, Bombas was "built for" just such a moment as the pandemic. Their successfulIndiegogocampaign in 2013 provided the answer: a resounding yes. Via that campaign alone, Bombas used their one-to-one giving model to donate more than 25,000 pairs of socks to homeless shelters around the United States. When we talk to customers, they tell us that while they love the mission and that's a key driver in their purchase, the quality and comfort of our socks, and now other products, is the primary motivator, especially for the first purchase. Consider Bombas, a company that donates a pair of (well-designed, somewhat pricey) socks to homeless shelters with every pair sold. Do whatever you can to make your brand and product as simple as possible to help the consumer understand what your mission is, Heath recommends. In the venture world thats like a bad word. And Bombas at the time of the case was selling pairs for an average of $12.50, which is a lot. And a number of the students in the class that I had learned about this aspect of their business, because they read the case though, they had also already owned Bombas socks. ELIZABETH KEENAN: Thank you. Something else is at play here. And I think either approach could work, especially when you start with this dual mission. I cant let you go without asking one last question. Internal true believers naturally yield external true believers, and that's how brands become emotionally connected with their stakeholder audiences. And that might explain it. I had to focus on refining the product, the brand, the story and the mission, Heath recalls. Bombas does a really good job of promoting their brand mission to customers, and this is supported further by extending their values to employees. The process was so exciting. Bombas was started in 2013 with a dual mission: to deliver quality socks and donate much-needed footwear to people living in shelters. And they gathered some information around the fact that often used socks are not donated to homeless shelters, or accepted for hygiene reasons. What are some of the important ways your marketing has evolved as the business has grown? Its a luxury item for over 640,000 people who experience homelessness in the U.S. annually.. 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. BRIAN KENNY: And so, going back to gen Z for a minute, that to me just sounds so authentic. But at least for Bombas customers, buying one pair of socks and donating a pair to someone in need makes them feel good. 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? Learn more about the email marketing strategy of Bombas. And its actually why this case was important to me, both from the perspective of the pro sociology of businesses, but also for a course that I was going to be building, which I ended up teaching recently, which was on purpose-driven marketing. 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. While Bombas Socks certainly utilizes more traditional product promotion on its social channels , Ultraviolet Ankle socks for women are here. Everything looks simple and easy to analyze. Bombas de profundidad Cuota De Mercado, Tamao Y Crecimiento Global En El Prximo Ao. Talbot:To be a brand thats going to endure, that will be around for a long time, what kind of messages do you want your marketing to convey? 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. 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. If they grow too quickly, then all of a sudden they have a much more complex issue, both in terms of managing product sales, as well as now managing multiple versions of donations to potentially thousands of giving partners. They're out of business. As Heath toldGlamour,When we first started, I stopped to hand a man on the street a pair of socks, and he proceeded to take off his shoes and show me the make-shift socks he was wearing made out of plastic shopping bags and to tell me how crucial a fresh pair of socks were to him. Talbot:What best practices for scaling the marketing has your team learned and implemented? And you could see this controlled growth, both in their advertising and marketing, as well as in terms of product line expansions and extensions. Theyll also act as evangelists, speaking about the benefits of the product with more legitimacy than any marketing collateral. Your loyalty is reserved for brands that support social justice and economic equity, and those that give back to society in meaningful ways. And once they raised that money, they started to create their first pairs of socks and sell them. 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. To drive purchases, the brand's marketing campaigns focus on the positive impact and quality of their product. This objective tends to come alive more easily in marketing strategy than in actual execution. This superior after-sale customer service is one way that Bombas creates customer value ", Bombas' Brand Culture Leads to Brand Love. Brooklinen donated thousands of twin bedsheets to accommodate the needs of the homeless community, which Bombas was able to distribute via its helper network, according to Heath.