"Every organization knows what they do, but just a few know WHY they do what they
do." - Simon Sinek.
So we ask you, what is your "WHY"? And no, you can't say money. Money is a consequence.
A 2018 research indicates that 63% of consumers prefer to buy from companies that take a stand for issues that they care about. In 2021, after a year full of social and political issues, people are paying extra attention to what brands stand for, their purpose, and if it aligns with their values. So more than ever, it's time for you to have a crystal clear purpose for your brand.
WHAT IS A BRAND PURPOSE?
If you google the word purpose the result will be this:
The reason for which something is done or created or for which something exists.
When you apply it to a business, it is the core belief that drives your business to impact the world around you. It is the reason you wake up every day. It is your why.
A brand's purpose is not related to what you sell. It is about what you stand for as a business. A purpose-driven brand is capable to forge a relationship with its audience that goes beyond the transaction sell-buy.
WHY DOES BRAND PURPOSE MATTER?
Back in the day, brands used to hold all the cards. Brands would tell their customer what they needed and not the other way around, and if they didn't want or liked what was offered... well too bad, that wasn't much that a client could do (at max write a letter that wouldn't do much). But this dynamic came to an end with the .com revolution.
Now people have an open communication channel. Information is floating everywhere. We are much more aware of social, political, and environmental issues around the world, and not only that, we are watching closely what companies are doing about it.
So what a brand's purpose has to do with any of that? Some people feel that having a brand purpose is some unnecessary hippie, heart-felt ideal. Well, not really.
In Jim Stengel's book, Grow, he shows the results of a 10-year study of 50,000 brands. He says that purpose-driven brands, that are centered on improving people's lives, beat their competition. And more, he also says that:
The 50 highest-performing businesses are the ones driven by brand ideals (a.k.a brand purpose).
These 50 businesses grew three times faster than their competitors.
Haven't convinced you yet? Wait, we have more numbers. The Accenture Strategy Global Consumer Pulse Research shows that:
65% of people say their purchasing decisions are influenced by the words, values, and actions of a company’s leaders.
62% of consumers say their purchasing consideration is driven by a company’s ethical values and authenticity.
SOME OF OUR FAVORITE BRAND PURPOSES TO INSPIRE YOU TO WRITE YOURS
Crayola: "Encouraging children to be creative, and enabling parents to inspire them"
Dove: "Discovering the value of ‘real’ beauty and improving self-esteem worldwide"
Google: “To organize the world’s information and make it universally accessible and useful.”
Nike: “To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.”
In overall having a brand purpose will help to
Create deeper connections with your audience, that will help to build brand loyalty instead of attacking shoppers that are looking for the best price tag.
Bring clarity to the future of your brand. It serves as a guide to figure out the next steps. What to do and how you will do it to fulfill your purpose.
Define your brand culture and what employees have to work towards. It also attracts people to work for you that share the same beliefs and values.
Grow faster. Purpose driven brands tends to grow faster than its competitors.
Creating a purpose-driven brand has never been so important. It's time to sit down and reconnect to yours, or if you still don't have one, start by thinking what was the dream that motivated you to first start your business and what legacy do you want to leave behind?