The current marketplace is changing rapidly. There’s supply chain disruption, and consumers are shifting their focus to brands that make a difference in society. People no longer buy products because of their price tag, superb packaging, or sales pitch.
As much as these factors part in swaying consumers’ purchase behavior, you can’t overlook the role brand purpose has on your business. According to Porter Novelli’s 2021 Purpose Perception Study, 62% of respondents will consider a company’s purpose when making an impulsive purchase.
That’s what a compelling brand purpose can do for your business. It lets you connect emotionally with your customer to stand out in this evolving marketplace.
In this article, you’ll understand what is brand purpose, the power and impact behind purpose, why it’s essential for brand growth, and how you can formulate an appealing brand purpose.
Read on to find out more.
What is a brand purpose?
While the bottom line of doing business is to make profits, you shouldn’t let profit-making be the purpose of your business.
Purpose-oriented brands focus more on why they exist— this is their bloodline. Without it, there’s no need for their existence. Often, brand purpose is a reflection of your experiences, how you view market gaps, and how you’re going to influence the marketplace.
Purpose-oriented brands exist to create social, political, or moral change, therefore, influencing consumer purchasing power based on their values of life.
So, brand purpose is the blueprint of how you conduct business, from hiring and production to marketing. It is the cornerstone of a successful business venture.
Is brand purpose the same as its mission, values, and vision?
Brand purpose isn’t the same as your company’s mission, vision, and values. However, as we had mentioned, it’s the cornerstone of your business. From it, everything flows and has to align with your brand purpose.
Below are the differences between your brand’s purpose, mission, vision, and values.
i. Brand purpose
This is why you exist as a business and your impact on the world.
ii. Brand mission
Your mission is how you’ll achieve your goals. It can be your business strategies and tactics. A good mission statement will act as a motivator to your employees and helps consumers associate better with your brand.
iii. Brand vision
This is what your brand will deliver. It includes your brand’s long-term goals. You can break these goals into steps to better inform you of your brand’s progress and ensure you won’t lose sight of your objectives.
iv. Brand values
It is how you behave when conducting business. It’s the culture you’ve created around your business, for example, teamwork, trust, and accountability.
What’s the importance of brand purpose?
Brand purpose isn’t some short-term marketing strategy that will fade away. It stays all the way! And you can impact your business with a meaningful brand purpose in the following areas.
a. Brand loyalty
You’ll build a connection with your clients by having a brand purpose that aligns with your customers’ beliefs, needs, and requirements. Eventually, they’ll be loyal and trust your product through continuous purchasing, improving your client base.
This is shown by 79% of American consumers feeling a deeper connection with brands that portray their values, and 83% are loyal to purpose-driven brands. This goes a long in cementing your market share.
b. Inspires employees
The importance of an inspired workforce cannot be overstated. When you have such a workforce, your potential is limitless, and you can achieve almost everything, if not everything. A brand purpose inspires and motivates your employees to commit to work and achieve more
But how does it do this?
Once you have a brand purpose, you’ve humanized your business. This creates an emotional connection with your employees, making them feel part of the business. As a result, they’ll commit, be inspired, and be motivated to work.
According to a survey, purpose-driven brands have motivated 63% of their employees, with 65% being passionate about their work. This improves their productivity by 30% and helps you achieve the much-needed production goals.
c. Grows your business
As outlined in a study by Interbrand, you’re more likely to outperform the stock market by 120% when you’ve got a brand purpose for your business.
That’s mainly because companies with brand purposes have a solid customer base. About 70% of these consumers will defend it when spoken off badly, and 72% are willing to forgive it if it missteps. With such a consistent and loyal following, your business will grow.
d. Raising awareness
As your business continues to grow, so will your product base. This creates the need to formulate an overall brand purpose that you can use to build trust and launch your products.
An excellent example of brands using this strategy is Unilever, with its many products in the market. Since they have a purpose-driven brand, they can easily create awareness of a new product in the marketplace. This led to faster growth of their Sustainable Living Brands by 69% in 2018.
Additionally, 64% of global consumers expect CEOs to raise social change awareness, and 84% expect them to influence policy debates. By raising awareness on social issues, you’ll solidify your identity, and your products will gain consumer trust, positively impacting your sales.
e. Improves brand identity
Research shows that 72% of US Gen Z consumers will look up a brand’s purpose before purchasing a product. Also, 90% will hold companies accountable for social help and environmental issues, making purpose-driven brands more appealing.
So, to break into this market, you should communicate your brand’s purpose through packaging, social media handles, or any other customer touchpoint.
The bottom line of how brand purpose impacts your business is that your chances of growing a successful business are better when you incorporate your brand purpose in your marketing campaigns. By effectively communicating your purpose, you’ll stay ahead of your competition and receive support from all stakeholders.
Now that you’re aware of the importance of brand purpose, we can look at how you can describe your brand purpose.
Describing your brand purpose
Apart from the mission, vision, and values you need to figure out a brand purpose, you must consider coming up with answers to the following questions for a strong brand purpose.
What’s your brand tone?
Since brands belong to the community and different stakeholders, you should have a brand tone that resonates with your customers. You can achieve this by constantly communicating your brand purpose in the most authentic and humane way possible. This will help in determining the following;
- Whether your products will be bought or not
- Whether investors feel motivated to co-develop the product with you
- Whether distributors will partner with you in sales
You can have a great brand purpose, but it will be zero work if you don’t let it out to the world in the right way. Your competitors will still be on top of you in marketing. Your brand tone should align with your customer’s perception to stay on top.
When telling your brand purpose, focus on how your product has impacted consumers. You can ask consumers to share their testimonials on your social pages. This will cement your credibility further and attract a new customer base.
You can also share how you run your operations to connect with your customers. So long as your brand tone resonates with consumers, your brand purpose will remain attractive.
Do you solve your customer’s problems?
You can have a great brand purpose that can save the world, but if you’re not solving your immediate customer’s problems, you’ll buy the product yourself.
So, you need to research your customer’s pain points to create the ultimate brand purpose. You should also consider your competitor’s weaknesses and turn them into your strong points. This can include offering free delivery for products purchased above a specific price or delivering products in less than 24 hours. This will improve your customer experience and drive your revenues up in the long run.
Do you have a following?
If you want to build a vital brand purpose, it’s best to have a following around you. You can create a community of believers around you, who will help make your brand relevant.
You can also partner with your competition to positively impact society. This will create a sense of belonging to community members, and they’ll feel appreciated and stay loyal to your brand.
What do your employees think of your brand purpose?
Employees are one of the most crucial assets you’ll have in your business. Given that they spend 40 hours a week developing your business, their opinions on your brand purpose matter.
You can start by presenting your employees with different adjectives and asking them to vote for one that aligns with the brand’s purpose. If they choose a purpose that doesn’t align with the brand’s purpose, you need to change their perspective on the business’s brand purpose.
Remember, if you can get them to work for the proper purpose, they’ll be motivated and passionate. Imagine the possibilities with such a workforce.
Many small businesses overlook the importance and why they should incorporate purpose branding. They don’t know that they are missing the chance of a lifetime to grow and develop their business using purpose branding.
I hope you won’t join that bandwagon and miss out on the many benefits that come with building a purpose-driven brand. All the best in growing a successful business venture with purpose branding.