In today's world, consumers are more conscious than ever about the impact of their purchasing decisions. They want to engage with brands that are committed to making a positive impact on the world, and this paradigm shift has transformed the way companies are approaching marketing.
As Simon Sinek famously said at his Ted Talk, "People don’t buy what you do; they buy why you do it”. Almost all companies know clearly “what” they do, most know how they do it, but very few know “why”. The most beloved and successful brands are those that invest effort into developing a clear purpose and genuine commitment to meaningful causes.
This article will explore how to define the purpose of your company, the very importance of having one, and step by step process to develop a clear and compelling purpose that resonates with your customers.
A company's purpose is the underlying reason for its existence, transcending mere profitability. It embodies a deeper belief that inspires others to take action. Uncovering this purpose can be a challenging process, both for individuals and organizations. However, when a company aligns its beliefs with those of its audience, the resulting connection becomes immensely powerful.
Humans possess an innate desire to be part of something greater than themselves, and finding a brand that shares their beliefs provides an opportunity to support a cause that may otherwise be difficult to champion alone.
A global study done by Zeno shows that 94% of consumers think it is important that the companies they engage with have a strong purpose, and 83% said companies should only earn a profit if they also deliver a positive impact.
In combination with consumer's desire to engage with companies with a strong purpose they are also becoming skeptical about brand authenticity. Because of this it’s extremely important to be coherent and consistent and have a real commitment to your company's cause. Also the leadership of the company sets a compelling example and demonstrates substance, aligning their actions with this belief.
Patagonia, a renowned outdoor clothing company, is committed to environmental conservation. Their purpose is to "use business to inspire and implement solutions to the environmental crisis." They have taken various actions to support this cause, such as donating their profits toward environmental organizations, launching sustainability initiatives, and advocating for public lands protection.
Toms, a renowned shoe brand, stands as a shining example of a purpose-driven company. Guided by their strong belief in creating a more equitable world, Toms has made it their purpose to "improve lives through business." For every pair of shoes purchased, Toms donates a pair to a child in need. In addition to their impactful shoe donations, Toms has expanded their mission to include further causes such as providing sight-saving treatments, and clean water initiatives. These tangible actions, rooted in their clear purpose, have deeply resonated with consumers who seek to make a meaningful difference through their purchases. Toms has become a beacon for socially responsible business empowering individuals to positively impact the lives of others simply by choosing their products.
Creating a brand with purpose has become a necessity in today's conscious consumer landscape. Consumers seek brands that align with their values and make a positive impact on society. By uncovering and embodying a clear purpose, companies can inspire action and forge meaningful connections with customers. Building a brand with purpose requires defining the underlying belief, aligning actions with the cause, and implementing strategies to measure impact. By committing to a purpose-driven approach, companies can cultivate loyalty and create a lasting positive legacy in the world.