Why Brand Purpose Matters More Than Ever Before

In today’s competitive marketplace, it’s not enough for brands to sell quality products at the lowest price. The demand for purpose-driven companies and products is at an all-time high, with consumers and employees looking for brands that align with their values and beliefs.

A brand’s purpose is the reason a company exists beyond making a profit. It’s the driving force behind a company’s actions and the impact it wants to have on the world. Or, in short, their WHY.

Consumers and Compe88ve Advantage

Consumers continuously grow more conscious of the impact their purchasing decisions have. As a result, having a solid brand purpose has become more critical than ever for businesses looking to stand out and connect with their target audience. This is especially important for younger generations like Gen Z and Millennials, who are more likely to consider a company’s social and environmental impact when making a purchase.

A survey conducted by Harvard Business Review showed companies with a strong brand purpose have a 5-7% advantage in the market. This doesn’t mean, however, that brands can dish out a mission statement and call it a day. It’s essential that a brand uses their purpose as a driving force for making company-wide decisions.

Brand strategist, Anthony Miyazaki, says brand purpose has the potential to be a key driver for brand reputation, positive brand associations, and even higher sales volume if it is developed with the idea that it will drive company policies, practices, and products.

Employee reten8on

When a company has a clear and compelling brand purpose, it can be a powerful driver of employee engagement and retention. Employees are more likely to feel a sense of purpose and meaning in their work when they understand how their efforts contribute to a larger goal. It can also help attract top talent who are looking for more than just a paycheck.

During the “Great Resignation,” we saw a significant increase in employee resignations in every industry. While there were many factors that contributed to this, creating a brand purpose that employees and leadership believe in and relate to can increase loyalty to the brand and lower turnover rates.

To differentiate themselves in a competitive market and to attract and retain talent, brands need to establish a strong brand purpose. This can include a commitment to sustainability, social responsibility, or a specific mission or cause that the brand supports. Having a clear brand purpose not only differentiates a brand from its competitors but also helps to build trust and emotional connections with consumers.

Brand purpose is no longer a nice-to-have; it’s a must-have for brands that want to stay relevant and competitive in today’s marketplace.