Tips and tricks on Startup, corporate collaboration
Tips and tricks on Startup, corporate collaboration
Emma-Jane Willan & Sarah Strickland
In collaboration with Emma-Jane Willan & Sarah Strickland
August 31st 2020 / 15 min read
Why we invested in Bower Collective: A note from Damian Routley, Managing Director of Home & Hygiene:
With the global household green-cleaning market expected to grow to £21B in the next few years, we saw a clear opportunity with Bower Collective. Our vision was to curate the best possible products and apply an innovative closed-loop model to their packaging in order to reduce plastic waste. With Reckitt Benckiser's know-how of FMCG and logistics, and Nick and Marcus’ knowledge of the plastics industry, we thought we had a winning combination that would help us achieve a leadership position in the market.
Here, co-founder Nick Torday talks us through how the business was launched in January 2020 with Founders Factory, generating 140k+ revenue in just six months - even as the pandemic threatened to disrupt their crucial supply chains.
Highlights
400% revenue growth during lockdown
£100k revenue within six months
23,000 community of consumers established
£650k investment landed (£150k overfunded)
We first heard about Founders Factory’s joint venture with Reckitt Benckiser through a mutual business contact and it struck us as the perfect opportunity for our business. We were in advanced conversations with other investors but Damian and the team made a compelling case for us to come on board, and we felt motivated and supported from the off. We were already close to launch, but the Founders Factory team ensured that we accelerated through beta testing and into launch with real momentum and clarity of execution.
Myself and my co-founder Marcus come from a b2b background. I was running a consulting business where winning clients is much more about building networks, lead generation and events marketing. That’s very different to the data-driven mechanics of direct to consumer growth marketing.
Our first few weeks…
Top five questions you need to be asking your customers:
What’s your #1 challenge?
Who do you trust the most?
How do you currently find information on…
What do you dislike?
What brands do you love right now and why?
We were just going to put up a holding page initially until the product was ready, but Emily & Tim (Growth Leads at Founders Factory) encouraged us to build a waiting list to create buzz around the brand. Together, we used a platform called KickoffLabs, and with a little social budget, we were able to generate a waiting list of around 1,500 potential customers pre-launch.
The idea was that customers would sign up to be the first to hear when we were launching, and they were encouraged to recommend us to a friend for a money-off incentive. We realised quite quickly that the money-off incentive didn’t land strongly enough as customers didn’t know what it was they were getting a discount on - so we switched the incentive to focus on product giveaways and this drastically increased the referral rate.
Building our early community
We also launched a product community group on Facebook. This is a closed group which we still run, made up of our most engaged or loyal customers. We regularly publish polls and questions to the group to gauge what we should launch, or how to improve our design. It’s a great place to quickly gather feedback amongst a bigger group, and in the early days really helped us sense check some ideas, and move forward in the right direction.
“By building a waiting list we were able to nurture a closed community of early adopters who we communicated with regularly. They were happy to have ‘early access’ in exchange for being beta testers and providing feedback.”
Time to launch
The messaging that we developed and tested with Founders Factory that worked well was positioning Bower Collective as a new solution to sustainable living - but in a way that made it feel easy for customers to slot us into their lives. Thanks to rigorous testing, and leveraging customer reviews and later external social proof (PR) within our ad creative, we were able to bring down our Customer Acquisition Cost by 66% from January to March, to a place that ensured our ROAS was significantly positive (above 250%).
Google AdWords is highly competitive for keywords like laundry detergent, so we initially focused on Google Shopping where popular brand searches could be better targeted. A/B testing of both audience and creative offered early insights for refinements.
Reduction in CAC over time
While paid-for advertising was predictable and could deliver conversions quickly, we also wanted to build awareness of Bower Collective as a sustainable lifestyle brand, so we turned some of our attention to Influencer Marketing and PR.
This included influencers at every level, but we particularly focused on mid-level accounts with between 10k and 100k followers. We’ve already surpassed our target of 10k followers for the brand’s Instagram account as a result. By communicating our mission when liaising with the press, we were also able to secure coverage in places like The Independent, The Times, Country Living and Hello Magazine.
How to reach out to Influencers:
When building the initial target list, invest time into looking for people who resonate with your brand values. In our case a lot of effort went into looking for small - medium sized influencers who were already committed to and talking about sustainability. We searched by hashtags on Instagram (e.g. #zerowaste), and also took a look at some sustainability accounts and complimentary brands to see the type of influencers following them. 'Selling' the Bower mission to these influencers was very easy as a result. Almost all the influencers we reached out to in the first round said yes because they believed in our mission and really wanted to try the product.
When building the initial target list, invest time into looking for people who resonate with your brand values. In our case a lot of effort went into looking for small - medium sized influencers who were already committed to and talking about sustainability. We searched by hashtags on Instagram (e.g. #zerowaste)
When building the initial target list, invest time into looking for people who resonate with your brand values. In our case a lot of effort went into looking for small - medium sized influencers who were already committed to and talking about sustainability. We searched by hashtags on Instagram (e.g. #zerowaste)
Later we turned our attention to Content Marketing and Founders Factory came up with a framework for us that made it as easy as possible to generate content.
A series called ‘my sustainable home’ asked our best customers to talk about their own personal sustainability journey. You’re building loyalty among existing customers, you’re generating rich content that your audience is interested in and it’s filled with keywords which are highly relevant.
Through keyword research, we also identified high volume, high intent and low competition keywords and mapped out further articles like “five best plastic-free bathroom products”. We now rank on the first page of Google for the ethical soap brand Beco, for example, which we didn’t six months ago.
Test learn and test again
We combined this qualitative data with data from Google Analytics to make incremental changes to our shopping experience. The simple addition of a graphics-led four-step explainer, for example, helped users better understand our reuse and refill proposition, which improved our website conversion rate. For something so simple, we didn’t expect it to have such a material impact. Coupled with small but quick to execute tweaks here and there, we managed to increase conversion rate by 392% within a three month period.
Another area we spent some time testing was customer referrals. Founders Factory proposed a couple of referral tools for us to use and we chose Conjured Referrals due to its low cost and ability to customise the design and referral channels. We’re finding ‘money off’ incentives to work quite well currently (versus a % discount), but we have plenty of room for further optimisation to our messaging, incentives and referral journey.
You have to be all over the data. The aggregation and analysis of data for a direct to consumer business is its lifeblood.
Overcoming a few hurdles
You could not, and in fact, you still can't get these lotion pumps for love nor money. There's been a global shortage of these pumps for the best part of four or five months now, which has been a nightmare.
Through Founders Factory, we have an executive sponsor at Reckitt Benckiser who was fantastic and really supportive. When stuff started getting difficult she immediately connected us with a whole global network of very experienced professionals in a huge business. That was fantastic, giving us that “unfair advantage” to be able to access these resources when things got tough.
And we invested in a “back in stock” notification system at the height of pandemic panic buying when demand for bamboo toilet roll outstripped supply. As soon as the product’s back in stock it bulk emails everyone.
Because of the early foundations we set for our brand - being mission-driven and standing by our purpose - our customers were incredibly accommodating. If stuff went missing or was delayed, they were very very understanding - and continue, more or less, to be so if there are issues.
“Our mantra as a business is the sustainability is a journey, not a destination.”
“Our mantra as a business is the sustainability is a journey, not a destination.”
Final thoughts
Our mantra as a business is that sustainability is a journey, not a destination. I know it sounds quite trite, but it's really true. It's changing all the time. What’s sustainable today is not necessarily what’s sustainable in six months time. So you’ve got to be constantly innovating and iterating your business model to make sure that you're delivering the best possible outcome.
As a young business, trying to operate in these conditions has not been without its challenges, but it has also presented opportunities because of the type of business we are. It's been a really positive time. We've grown very quickly. We've amassed a great kind of cohort of consumers, a community of about 23,000 people in six months, and we consistently get brilliant feedback.
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