pur·pose – Noun: The reason why something exists. For companies, it is the foundation of every experience. It is the underlying essence that makes a brand relevant and necessary.
A purpose-driven brand is a brand that is motivated by their core mission. The reason why they exist is to solve a problem or meet a need in society, and that purpose informs the brand's vision, mission, story, visual identity, decision-making, and more.
"The brands that will thrive in the coming years are the ones that have a purpose beyond profit." – Richard Branson
Okay, let's get straight down to business – a purpose-driven brand is 100% beneficial for your bottom line, no doubt about it. Profit isn't the main driver of purpose, but it does keep your business alive, and that's pretty necessary if you're keen to continue making a difference!
63% of consumers prefer to purchase from purpose-driven brands, so if you're leading with purpose, you have the upper hand. Customers can relate to your story, are drawn in by your mission, and will advocate for the issues you support. Knowing the impact that their purchase is having means that investing in you feels much better than supporting a business that is driven purely by profit.
I know I've done it, and you probably have too! When I'm strolling through the aisles, or scrolling on Instagram, and encounter a product that supports an important cause, I feel compelled to purchase that over a cheaper alternative. I can see the difference it will make, and it feels good knowing that I've had even a small part to play in that impact.
That competitive edge isn't reserved just for new purchases either: 66% of Americans would even switch from a product they typically buy, to a new product from a purpose-driven company. So customers might seem loyal to another product, but with a purpose-driven brand, you can count on some betrayals in your favour!
"By standing for something bigger than what they sell, tuning into customers' beliefs and taking decisive action, companies have the chance to recast their customer relationships and connect with consumers on a deeper level." – Accenture
Want customers on your side? You've got it with a purpose-driven brand. 79% of Americans say they would be more loyal to a purpose-driven company, 73% would be likely to defend a purpose-driven company if people spoke badly of it, and 70% would be proud to be associated with a purpose-driven company.
If you have a clear purpose that your audience can get behind, they will become your biggest advocates and shout about your brand from the rooftops!
"Society increasingly is turning to the private sector and asking that companies respond to broader societal challenges. Indeed, the public expectations of your company have never been greater...Every company must not only deliver financial performance but also show how it makes a positive contribution to society. Without a sense of purpose, no company, either public or private, can achieve its full potential." – Larry Fink
More important than sales or branding is the potential impact that your purpose can have. Spreading the message of your cause is the real power of a purpose-driven brand.
Now more than ever, businesses are expected to be purpose-driven. It's not enough to have a product or service – whatever you offer needs to work towards a higher purpose. 79% of people believe companies should work to address social justice issues, whether that be climate change, women's rights, immigration, LGBTQ+ rights, or other important causes.
When you do have a clear purpose and do the work to back it up, your audience is instrumental in sharing both your brand and the issues that you champion. 78% of Americans would tell others to buy products from a purpose-driven company, and 65% would advocate for issues that the company supports.
Standing for, sharing, and helping to shift a societal issue will not only benefit your business but will have a monumental impact on those who are directly affected by that issue. By letting your purpose drive your brand, you have the potential to reach millions of people and drive incredible change.
To illustrate the power of a purpose-driven brand, I wanted to share with you some that are incredible examples of this done well.
Thankyou is a social enterprise that exists to empower humanity to choose a world without poverty. They commit 100% of their profit from their range of life-changing products to helping people in need.
Their purpose is at the core of everything that they do, and it's front and centre on their website and social media. It is also consistently weaved throughout their packaging, the customer experience and the stories that they tell. Customers can even track their impact and see what projects their purchases are assigned to fund, creating a sense of investment, agency, and empowerment among their audience.
For the Better Good creates a sustainable alternative to traditional plastic bottles and packaging, providing businesses with a simple choice. Their bottles are compostable, made from plants, safe to reuse and contain 100% pure New Zealand artesian water. Their purpose is clear and consistently present across their brand. From their name to their messaging, social media, products, website and more, the mission for climate change is shared, championed and celebrated.
You don't need to sell a product to be a purpose-driven brand either. Service-based businesses are equally as powerful in creating change. Buttabean Motivation started in an attempt to help people live healthier lives and set an example for their family and friends. Their mission is to reduce the alarming obesity statistics among Maori and Pacific people through education, thereby enabling them to choose a healthy and active lifestyle for the duration of their lives, their children, their wider family and the community. They do this through online programs with meal plans and workouts, plus free community boot camps. The mission is clear and is the motivator behind every service that the program offers.
"The purpose of your brand is to represent your purpose." – Michael Kouly
So there you have it. Everything you need to know about a purpose-driven brand, from what it even is, to why it’s important, to some fab ones, and even how to build your own!
January 28, 2020