Latest / The Marketing Funnel Podcast with Fexingo: Awareness, Interest, Decision, and Action Stages / How Allbirds Built a Marketing Funnel on Sustainability
Transcript
- Lucas: You know that moment when you're walking through an airport and you see someone wearing those wool sneakers that look like a cross between a bedroom slipper and a running shoe? That's the Allbirds silhouette, and it is unmistakable. Luna: I've definitely spotted them. And usually the person wearing them is happy to tell you how comfortable they are. It's almost like a uniform for a certain type of traveler. Lucas: Exactly. And that word of mouth is not accidental. Today we're looking at how Allbirds built a marketing funnel on sustainability — starting with a material innovation, and then layering transparency and community on top. Luna: And if you've been following along with our marketing funnel series, you know we love a specific case. Before we dive deep, a quick note — these conversations take time to research and produce, and a couple of dollars a month genuinely helps keep them going. If you've gotten something out of these episodes, consider buying us a coffee at buy me a coffee dot com slash fexingo. It's a small thing that makes a real difference. Okay, back to Allbirds. Lucas: So, Allbirds launched in 2016 with one product: a wool sneaker. Their founding story is that Tim Brown, a former New Zealand soccer player, was frustrated with how synthetic and petroleum-based most sneakers were. He wanted to make a shoe from natural materials. Luna: Right. And the material itself became the hook. Merino wool was the differentiator — it's breathable, machine-washable, and naturally odor-resistant. That's a product story that sells itself at the awareness stage. Lucas: Exactly. The top of the funnel for Allbirds was basically the question: 'Can a comfortable shoe be sustainable?' And they answered it with a very tangible product. But what's interesting is how they moved people from awareness to interest. They didn't just say 'we're sustainable' — they quantified it. Luna: You're talking about the carbon footprint label. Every Allbirds product comes with a number printed on the insole — like '10.6 kg CO2e' — showing exactly how much carbon was emitted to make that shoe. Lucas: That is a genius interest-stage tactic. Because sustainability is an abstract attribute until you give it a number. Suddenly the customer has a concrete fact to compare. And Allbirds made that number central to their messaging — they even set a goal to get their carbon footprint to zero. Luna: It also builds trust. A lot of brands say 'eco-friendly' but don't back it up. Allbirds put the data right on the product. That transparency creates a reason to believe at the decision stage. Lucas: And they didn't stop there. In 2020 they launched the 'Numbers for Nature' campaign, where they actually put the carbon footprint of their entire supply chain online. They published a breakdown of every step — from raw wool to shipping — in a way that was accessible to anyone. Luna: That's a bold move. Most companies would hide that complexity. But Allbirds used it as a marketing asset. It's the kind of content that gets shared by sustainability influencers and journalists, extending the funnel further. Lucas: Right. And it feeds into the consideration stage. If you're a customer who cares about the environment, you're now weighing Allbirds against traditional sneakers. The carbon footprint label becomes a decision-making shortcut. It's a brilliant way to differentiate in a crowded market. Luna: But here's the thing — sustainability can only differentiate for so long. As more brands adopt eco-messaging, Allbirds needs to sustain the interest. How do they keep people engaged after the initial purchase? Lucas: That's where the action stage comes in — and their referral program is a big part of it. Allbirds has a 'Give $15, Get $15' referral program. But the twist is that they frame it as sharing comfort and sustainability, not as a transactional discount. The language is about 'spreading the comfort' and 'helping the planet.' Luna: So they turn customers into advocates by aligning the incentive with the brand values. It's not just 'refer a friend for money' — it's 'help your friend discover a better, more sustainable shoe.' That's a much stronger motivator for their target audience. Lucas: And they make it easy. After you buy, you get an email with a referral link. The whole process is designed to be frictionless. And because the product is genuinely good — people really do love the comfort — the referrals feel authentic. Luna: Let's talk about the awareness stage more broadly. How did Allbirds initially get noticed? They didn't have a huge ad budget. Lucas: They relied heavily on PR and influencer seeding. They sent shoes to tech journalists and startup founders — the kind of people who were already thinking about sustainability and design. Those influencers posted on social media, and the brand got picked up by outlets like Fast Company and Vogue. Luna: So the top of the funnel was very targeted. They didn't try to reach everyone. They went after the early adopters who would become brand evangelists. Lucas: Exactly. And that's a classic DTC playbook — find a niche, dominate it, then expand. But Allbirds also had a content strategy. Their blog and social media focused on the science of sustainability: how wool is renewable, how they measure carbon, what regenerative agriculture means. They educated their audience. Luna: That education piece is important because it builds a deeper relationship. Someone who understands why the shoe is sustainable is more likely to stay loyal and buy again. Lucas: And they've expanded the product line — running shoes, sandals, socks, even apparel. Each new category is introduced with the same sustainability story, but adapted for the specific product. The running shoe, for example, featured a new sole made from Brazilian sugarcane. Luna: That's a great hook for a new launch. It gives journalists and customers something new to talk about, re-entering the awareness funnel. Lucas: Right. And they've also experimented with physical retail. Their stores are designed to be experiential — you can touch the materials, see the carbon footprint labels, and even learn about the supply chain on wall displays. That's the decision stage in person. Luna: I want to push back a little. Allbirds has faced some challenges. In 2022, they reported slower growth, and some analysts questioned whether the sustainability angle can sustain interest as competition from brands like Nike and Adidas with their own eco-lines increases. Lucas: That's a fair point. The sustainability differentiator is getting crowded. But Allbirds has a head start in authenticity. They were founded on that principle. For many customers, the brand is synonymous with sustainable footwear. That's hard to replicate. Lucas: Agreed. And they seem to know that. They've started investing in regenerative wool sourcing and even launched a resale program called 'ReAllbirds' where customers can trade in old shoes for credit. That's a loyalty play that also reinforces the sustainability message. Luna: So the funnel is a cycle — awareness through PR and content, interest through transparency, decision through the carbon label and retail experience, action through referral and resale. And then the action feeds back into awareness as customers share their experience. Lucas: That's exactly what makes the Allbirds funnel so elegant. It's not a linear path from top to bottom. It's a loop. Every customer who refers a friend is generating new awareness. Every resale transaction reinforces the brand values. The funnel becomes a flywheel. Luna: And that's a lesson for any marketer. If you can build a funnel where your actions at the bottom create new top of funnel activity, you get sustainable growth without constantly spending on acquisition. Lucas: One last thing — their email marketing is also worth noting. They segment based on purchase history and browsing behavior. If you looked at the running shoe but didn't buy, you'll get an email highlighting the sugarcane sole and a review from a marathon runner. That's classic AIDA in the inbox. Luna: They also have a loyalty program that's very simple — you earn points for purchases, referrals, and even for following them on social media. It keeps customers engaged beyond the initial purchase. Lucas: So to wrap it up: Allbirds built a marketing funnel on sustainability by making the abstract tangible through carbon labels, targeted influencer seeding for awareness, educational content for interest, transparent retail for decision, and referral programs for action. The key insight is that every stage reinforces the core value proposition. Luna: And the result is a brand that people feel good about buying and talking about. That's the ultimate goal of any funnel. Lucas: Next time you see those wool sneakers in an airport, you'll know the strategy behind them. I'm Lucas. Luna: And I'm Luna. Thanks for listening.