What purpose drives your brand?
You probably know that vision and mission are important ingredients in your branding. But did you know that your purpose or "why" is an equally crucial piece of the puzzle? And it's a piece that's growing in importance every day. Today, you could even say that a business without a defined purpose from several perspectives lacks meaning, at least in the eyes of potential customers and prospects. So what is the purpose of your business?
Purpose-driven brands
Research shows that more than 60% of younger decision-makers aspire to work for a purpose-driven company and that an equal number are willing to pay more for products from responsible businesses. Purpose is what determines which brands younger generations choose to interact with, both as employees and customers. They want the brand to have a clear and preferably broad agenda that includes contributing to a better society or a smarter world. Ideally, the brand's values should be the same as their own.
Brands with a why grow faster
Although purpose-driven brands are a relatively new concept, more and more companies are realizing the benefits of having a clear 'why'. Research shows that strongly purpose-driven brands and organizations grow twice as fast as businesses without a clear 'why'. In the same survey of marketing managers worldwide, 76% believe their organizations have a defined purpose. However, it also shows that only 10% have a clear statement backed up by a well thought-out action plan.
Not what you do but why
A big reason why so many have started to grasp their purpose is Simon Sinek's popular Ted talk where he describes "The golden circle" and that "people don't buy what you do, but why you do it". In his example he highlights Apple and IBM who basically produce similar products and have the same "what" and "how". What sets them apart is Apple's purpose, which can be summarized as "To challenge the status quo". Other examples of well-known purposes are:
- TED: Spreading ideas
- Disney: To make people happy
- Nike: To bring inspiration and innovation to every athlete in the world
The definition of purpose
As with vision and mission, there are as many different definitions of purpose as there are brand strategists. The definition we like to stick to is: "Purpose is the reason your brand exists beyond generating revenue". It's the answer to the most basic question your business has - why do we exist. What is our purpose? And while finding the purpose of your business can be just as challenging as finding the purpose of life, it's definitely worth a try.
Brain and heart
Your purpose should contain both brain and heart. It should be both dynamic and motivating. It encapsulates the deepest elements of your brand and reflects the impact you have on your employees, customers and the surrounding community. These 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?
What do you want to change?
Often the answer to your purpose can be found in history. Why did your founders start the business? What needs did they see in the market? How has this legacy been managed over time and does it still apply? Having a clear purpose often requires you to take a stand, so think about what your organization dares to stand for and wants to express. What do you want to help change now and in the future?
Involve your employees
Getting input from your employees in the process is important. As with all parts of branding, it's smart to get everyone involved in defining your shared journey forward. This will speed up the process, because once you have defined your purpose, the work begins. The ambition should be to communicate your purpose internally and externally in a clear and consistent way in all contexts. And more importantly, to live that purpose every day.
Have confidence
And for those of you who find it hard to find your why, take heart. Finding meaning isn't supposed to be easy - not even when it comes to brands.
Help with your purpose?
Find out more about how we work with brand strategies here or feel free to get in touch.
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