What is a for-purpose brand?
A for-purpose brand refers to a brand that has been able to establish its existence beyond its profit. Raphael Bemporad, the founder of BBMG, a for-purpose brand in the report Brand Purpose in divided times, defines a brand’s purpose as its noble star.
For these brands, the first step and primary mission is to discover your WHYs. Identifying why they exist will enable for-purpose brands to adequately meet the societal, economic and environmental needs for which the brand was created in the first place.
Why do consumers go for Purpose brands?
According to a 2018 Cone/Porter Novelli Purpose Study statistics, 79% of Americans are more loyal to purpose brands than traditional brands, and nearly 73% are more willing to defend them.
Many factors influence customers’ decision to go for purpose brands such as quality, personal values, price, individual aesthetic preferences, and feelings about the brand or its leadership system.
So, why is a for-purpose brand important?
- Purpose boost sales
A for-purpose brand has faster sales and better returns because, although profit isn’t the main purpose of owning a brand, it helps keep the brand alive.
If your consumers can relate to your brand’s mission and vision, it shows that you are making a meaningful impact and will be willing to invest in your brand rather than in one that is solely driven by profit.
- Purpose increases loyalty to the brand
By creating an important cause that consumers can advocate for, your customers play both a role in society and in your business and thus, can feel empowered to make a positive impact. Customers are more likely to choose for-purpose brands as the brand image is one that is bigger than the product they sell.
- Purpose increases impact
Sharing or spreading the message of the cause you fight for and making a positive contribution to society is the real goal. By responding to the most pressing social issues that need to be addressed by for-purpose brands, you’re not only helping to make a positive impact but also responding to market demand.
How can you build a for-purpose brand?
- Set out priorities
You need to figure out what inspires your brand and why. What are the challenges your brand can solve, or what consumer needs can you satisfy?
Make the answers to these questions an integral part of your brand. For-purpose brands should focus on their mission statement and allow the values embodied in such to drive their business growth.
- Be a creative, purposeful brand
For purposeful brands to excel, there is a continual need to think of and develop ways to engage your audience. Imagine you are telling a story. What are the things that are most important to say? What is the image you need to create in your listeners’ minds? Be sure to remember that your story will determine the impact you may have on your potential customers. A great example of a for-purpose brand which has mastered the art of storytelling in this context is Patagonia.
- Take action on those ideas you have formed
It is not enough to claim that you are concerned about a cause without action. The majority of consumers believe for-purpose business is seen by how beneficial a brand is to the world in which it operates. So, back your claims with real action.
- Activate your purpose
As a for-purpose brand, involve customers and choose employees who share similar values. Together as a team, come up with ideas and evaluate the risk of pursuing those ideas. Aside from these, remember to always include your customer on your journey. One of the most exciting aspects of for-purpose business is that there’s another depth and level to your brand so take advantage of such and include your customers in the experience!
- Be sincere and authentic.
Consumers hate brands that lie for the purpose of reputation. What’s more, consumers are more likely to purchase from a brand based on the words and beliefs of the employees of that brand. So, be sure to stay true to your word and let your mission statement guide your brand’s core.