Why Does Brand Purpose Matter More Than Ever?

In today’s crowded market, a strong product or service is no longer enough to stand out. Customers and employees alike are looking for brands that reflect their values, resonate with their beliefs, and offer more than just a transaction. This is where brand purpose comes into play. Brand purpose defines the "why" behind your brand—what it stands for and how it contributes positively to the world. When done right, a purposeful brand can drive loyalty, inspire advocacy, and create a lasting impact.

Examples of Brand Purpose in Action

Patagonia: Known for its environmental activism, Patagonia donates a percentage of profits to environmental causes, which resonates with eco-conscious customers.

Dove: Through its "Real Beauty" campaign, Dove empowers women by promoting inclusivity and authenticity, challenging beauty standards that resonate with its target audience.

LEGO: Committed to sustainability, LEGO has pledged to make all core products from sustainable materials by 2030, appealing to environmentally aware consumers.

Why Brand Purpose Matters

1. Builds Customer Loyalty

   
   

   Today’s consumers have countless choices, but they often choose brands that align with their values. A clear brand purpose builds an emotional connection with customers, fostering loyalty that transcends product features. When consumers believe in what your brand stands for, they’re more likely to support you, advocate for you, and stay with you over time. According to a 2021 Edelman study, 64% of consumers choose, switch, avoid, or boycott a brand based on its societal actions.

   
   

2. Drives Employee Engagement

   
   

   Purpose-driven companies attract purpose-driven employees. Employees who connect with their company’s purpose are more engaged, motivated, and productive. Gallup data shows that employees who believe in their company’s mission are 27% more likely to remain loyal, improving company culture and reducing turnover.

3. Enhances Brand Differentiation

   
   

   In competitive markets, differentiation is crucial. A well-defined brand purpose provides a unique position, setting your organization apart. This purpose acts as a guiding force, helping your brand stand out as a leader with a clear mission rather than just another market player.

   
   

4. Encourages Resilience and Adaptability

   
   

   Brands with a strong purpose are more adaptable in times of change. Purpose-driven brands are more likely to innovate in ways that stay true to their mission, making them resilient in the face of challenges. According to Deloitte, purpose-driven companies are more likely to experience consistent revenue growth, even during uncertain times.

How to Define Your Brand Purpose

1. Reflect on Your Core Values

   Identify the values at the heart of your brand. This foundation helps define a purpose that is meaningful and aligns with your mission.

   
   

2. Understand Your Audience

   Purpose should resonate with your audience’s beliefs and needs. Listen to your customers and consider the issues that matter to them.

   
   

3. Align with Your Business Goals: Ensure your purpose complements business goals, creating a relationship between mission and profitability.

   
   

4. Make it Actionable: Back your purpose with actions, demonstrating it through policies, partnerships, and practices. Authenticity builds trust and long-term credibility.

   
   

References

Edelman. “Edelman Trust Barometer 2021.” Edelman, 2021.

Gallup. “State of the American Workplace.” Gallup, 2017.

Deloitte. “2020 Global Marketing Trends: Purpose is Everything.” Deloitte Insights, 2020.

Image: "Golconda - René Magritte 1953" by oddsock is licensed under CC BY 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by/2.0/?ref=openverse.