Many business leaders would state first and foremost that their priority is to make money. But when these attitudes are shifting to become “purpose first,” then the results are better and longer-lasting.
If customers made purchasing decisions solely based on price, then companies would only compete to make the cheapest products—and ultimately, everyone would fail in the long run. Thankfully, customers care about things greater than money.
Even more so today than ever before, customers are seeking friendly relationships with brands. They are interacting over social media, and basing decisions based on what they see and hear firsthand. Customers will support and even strongly advocate for companies that they feel speak their language and represent their values.
It’s not enough to simply make a product and advertise it. Now, you must provide transparency and communicate intention. Customers want to know why.
Purpose is the central idea that connects all branding activities.
Purpose, in a way, becomes to core of everything. It goes beyond the things you make. It stands the test of time. It survives transition. It defines why you do the things you do, who you do them for, and why it matters. These are all things that customers need to know. They will spend more and remain loyal longer when they feel personally connected.
With a purpose-driven roadmap, everything your brand says and does will be more authentic.
Branding is not just empty words. It communicates real ideas that customers expect action upon. Whether you’re making shoes or shirts or apps, there’s more than just things. There’s reasons. Whether your brand is uniting, sharing, nurturing, enhancing, growing, inspiring, teaching, or reducing, it’s doing something. (Hint: it’s not just selling).
Customers don’t want to feel like they’re being sold to. They want to experience authenticity and feel a personal connection. The most successful brands are able appeal to their personal values, interests, and ideals.
When your brand resonates with purpose, all the vibes it puts out into the world sync together into a singular tone. People pick up on this. The brand’s motivations feel more authentic. Customers sense that the brand represents higher a quality and they care more about supporting its success.
There’s no formula for drafting a flawless purpose statement.
Creating a purpose statement that’s strong enough to resonate throughout the brand’s every touchpoint can be a daunting task. This is where you labor over every word and consider ever association. Every brand is unique. It must be succinct enough to be memorable, strong enough to last for a long time, and broad enough to appeal to many people.
To find out if your purpose statement is working, try answering these questions:
1. Why does my company make what it makes?
2. Why does my customer care?
3. Is my company’s purpose bigger than my own self-interests?
4. Do my actions and activities uphold my purpose?
The great thing about enacting purpose within an organization is that it provides guidelines. This helps customers trust that what you say is real. It makes your brand more authentic. Once you clearly articulate a meaningful purpose then you’ll find every decision must be checked against it. Suddenly there are lines that won’t be crossed. There are things your brand will do more of, and things your brand won’t ever pursue again. Customers will believe your intentions are pure when your company sticks to a solid, meaningful foundation.
Brands increase their value exponentially when they’re rooted in strong purpose.
Perception
When customers sense that the brand exists for reasons beyond making money, the perceived value is higher. The customer will choose to pay more, and the company makes more profit.
Retention
When the customer sees the brand investing in people and communities in ways that align with his/her values, they become emotionally connected. They will become loyal, returning again and again to purchase more products and services.
Influence
When the customer cares, and feels emotionally connected, they will influence others. The greater their connection they more passionately they talk about the brand. When he/she is passionate, their referral is worth more.
Without purpose, brands die.
This is a tough—but true—fact. If consumers don’t care, then brands will be forgotten and fade away. Studies have reported that consumers would not care if 74% of the brands that exist today simply disappeared. These brands don’t demonstrate any reason for existing beyond making a profit for themselves. They aren’t interested in societal health, personal wellbeing, the planet, education, or quality of life for people. Simply put, they don’t care. Therefore, consumers don’t care either.
Evidence shows that brands built with purpose are financially outpacing those without. Brands who are inserting themselves into the world in meaningful ways are reporting significant increases to their market share, and demonstrating 137% greater returns on KPIs year-over-year.
What does this mean? When the brand cares, consumers care.