Giving feels good on its own, says TOMS Shoes founder Blake Mycoskie, but it’s also a great business strategy. TOMS’ one-for-one philosophy (the company gives away a pair of shoes for every pair it sells) has led it to success, he says.
Mycoskie announced at the recent SHRM Annual Conference and Exhibition in Chicago that TOMS has recently sold its 10 millionth pair of shoes (and has given away an equal number).
Mycoskie offered the 15,000 HR managers in attendance three exles of ways in which giving can bring benefits right to the bottom line.
1. You Don’t Need Marketing
When you incorporate giving into your business strategy, says Mycoskie, your customers become your best marketers. He told the story of a woman he met in a line who was wearing TOMS shoes. Without revealing who he was, he asked her about her shoes. She launched into praising the company and revealed herself as an enthusiastic evangelist, said Mycoskie.
When he revealed himself to the lady, she said, “Why did you cut your hair?” She had been intrigued enough by TOMS’ approach to have gone online and viewed videos of Blake in action giving away shoes in Argentina.
That’s a great customer who’s going to bring more customers, says Mycoskie.
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2. Recruiting Is Easy
People come to work at TOMS because they want a job that counts, Mycoskie says. Working there makes them proud. After employees have been with us a year, he says, they go on one of the trips to give away shoes. They come back with a renewed spirit and enthusiasm.
If you give opportunities for team members to serve, you’ll find that petty office politics fall away, Mycoskie says. And the great thing about it, he adds, is that it is not expensive.
3. Great Partners Flock to You
People like Ralph Lauren, ATT, and Nordstrom were attracted to partner with TOMS early in the company’s existence because of the giving program. If you embrace giving, Mycoskie says, partners will come.
“Giving feels great, and it’s also a great business strategy,” he says. His story is told in his book, Start Something that Matters.
Anyone out there wearing TOMS shoes? What do you think of his business strategy?