Why Brands Need Purpose to Survive


2021


“Never let a good crisis go to waste.”

 
WINSTON CHURCHILL


Recent global events have proven that purpose—once a concept used by non-profit organisations, “greenies”, and community groups—is a strong force that drives brand behaviour. In fact, these events have shifted people’s perceptions about what truly matters: in life, at work, at home, who they spend time with and what they spend money on.


So what’s “brand purpose” anyway?



Brand purpose is a reason for a brand to exist beyond making a profit.

The Golden Circle by Simon Sinek explains this further:

WHAT
Every company knows what they do. These are the products they sell or the services they offer.

HOW
Some companies know how they do it. These are the things that make them special or sets them apart from their competition.

WHY
Very few companies know why they do what they do. Why is not about making money or turning massive profits—that’s a result. Why is a purpose, cause, or belief. It’s very reason why a company exists.




Knowing why your company exists provides the foundation for everything else. Knowing your why means you can reverse engineer your what and how, to make them align with your purpose, resulting in a brand that has far more value, equity, awareness, and loyalty than ones that sell products or services for profit.


So why does your brand need purpose to survive?



Today’s landscape of COVID-19, climate crisis, politicial, economic, and social justice has changed the way we live, work, and interact with others, and will continue to do so for a long time to come. But brands that will thrive in the face of crisis or adversity are ones that are guided by purpose, and in 2021, not having a purpose is no longer an option for brands—it’s expected. People want values they can relate to, ethos they’re inspired by, and a genuine and compelling reason to invest their time, energy, and money on products and services. Consumers are demanding more, not only from the brands they buy from, but the brands they buy into.

According to Kantar Consulting’s 2020 Purpose Research (PDF), brands recognised for high commitment to purpose have grown at more than twice the rate of brands without it. Furthermore, the research found that brands with purpose significantly increased consumer demand by 84%, employee preference by 300%, and financial performance by $6 trillion. It’s a no-brainer.

Does your brand have a purpose? If not, don’t wait for the next crisis to figure it out. We can help you. ︎︎︎ Contact us.



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