Why is it important to define the brand's purpose?

Have you ever asked yourself why your business exists, beyond generating revenue? It's not always easy to find meaning in everything we do, but there are many benefits to defining the purpose of your brand. Not only to increase the number of loyal customers, but also to create a sense of pride among employees.

We all want to contribute to something bigger

Here's a quick lesson in basic psychology. In the 1940s, the American psychologist Abraham H. Maslow developed his hierarchy of needs, an explanatory model of how we humans prioritize our needs. First, we need to satisfy our physiological needs such as food and sleep, and then we strive for security, love, self-assertion and finally self-actualization. Maslow believes that each step on the ladder must be satisfied before the individual can aim for higher goals. In the Western world today, we live in a post-material society, where we take the basic needs for granted and instead focus on self-assertion and self-realization. From this attitude also comes a kind of need to seek meaning in our existence and to contribute to a better world. This leads us to why it is important to define a brand's purpose - today, brands are powerful actors that can engage, mobilize and change our society.

Brand purpose affects both employees and customers

Modern man's search for meaning is continuously confirmed by various studies and reports. For example, businesses with a purpose grow twice as fast as those without an explicit 'why'. And 60% of younger consumers say they are willing to pay more for a product if it comes from a socially responsible company. Last but not least, 60% of millennials (people born between 1980 and 1995) look for employers with a clear purpose. The brand's 'why' thus gives the customer and employee a sense of contributing to a better society or a smarter world, which in turn generates ambassadorship, pride and loyalty.

The values are the foundation of the purpose

The values of the company are its DNA. They permeate and shape everything we do. How we talk to our colleagues and customers, the credibility of our message and the affinity we can feel with each other and the brand. As business models and products change, values are enduring. And values are often the source of your brand's 'why'.

"Brands start on the inside with humans and are ultimately delivered on the outside to humans."

How to find your brand's purpose

The purpose should contain both heart and brain. It encompasses the deepest elements of your brand and reflects the impact you have on your employees, customers and the surrounding community. Here are examples of questions that can help you define your purpose:

• Apart from making money, why do we do what we do?
• What is it that we value above all else?
• What is our greatest passion?
• What are our drivers as an organization?
• What values are our activities based on?
• What does the world need that we alone can deliver?

Internal factors that create meaning

In every single employee there is a representative of the company. An employee who both understands and shares the company's values often becomes a good ambassador. That's why it's important to involve people in the branding process. There are four decisive factors for how well the management team succeeds in anchoring the company's purpose internally:

• Clarity
• Commitment
• Governance
• Susceptibility

How to share your purpose with the world

As mentioned earlier, purpose-driven business is a competitive advantage that attracts new customers and keeps old ones coming back again and again. To succeed, it is essential that the company communicates its purpose with credibility and relevance. A lame or unengaging purpose risks becoming a desk-top product that attracts no one. Dare to stand out and be clear about how your brand works to fulfill its purpose. We usually use the following six factors when we talk about sharing your purpose with the world:

• Credibility
• Relevance
• Segregation
• Uniformity
• Presence
• Commitment

Time to get started!

Hopefully, you are now ready to start the search for meaning. It may be difficult and it may take time, but don't forget to enlist the help of your colleagues. Together you will build a really strong brand. And if you'd like some help along the way, you're more than welcome to contact us.