Purpose-driven branding has emerged as more than just a trend, it’s more of a strategic imperative. Brands have increasingly focused on achieving goals that demonstrate positive tangible impact on the world in sustainability, transparency, worker well-being, community support, and looking after the environment. Consumers are no longer just looking for products or services; they are seeking brands that resonate with their values and improve their societal experience. This shift has led businesses to re-evaluate brand strategies, integrating purpose at the core of their operations.
Purpose-Driven Branding?
Purpose-driven branding goes beyond profits. It’s about aligning your brand with a cause or mission that transcends the bottom line, creating positive impact implementing “practical idealism within the tight realms of capitalistic constructs”. This purpose should be deeply embedded in your brand’s DNA, guiding decisions and actions at every level of the organisation. It involves redefining purpose and success served in Maslow’s Hierarchy especially at the leadership level attuned to the growing socially conscious consumers.
Purpose-driven branding dates back to the 1800s, with companies like Kit-Kat aligning and differentiating their business practices with broader social values by offering benefits such as housing, education, and medical services to employees. While such initiatives were primarily championed by nonprofits until the late 1980s and 1990s, brands like The Body Shop and Patagonia later emerged as pioneers, integrating sustainability and social responsibility into their core identities and “leveraging disruptive innovation to establish a robust competitive advantage”.
Purpose-Driven Brands to Watch:
Disruptive Innovation and Competitive Advantage: How Patagonia Leads the Way
Unpacking The Body Shop: From Eco-Pioneer to Corporate Casualty?
“People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe.” Simon Sinek, author of Start with Why said. His quote encapsulates the essence of purpose-driven branding—your brand’s “why” is what truly connects with consumers on a deeper, emotional level.
Video: Start with why — how great leaders inspire action | Simon Sinek | TEDxPugetSound
Why Purpose Matters
Consumer Expectations
A 2023 survey by Accenture found that 62% of consumers want companies to take a stand on current and broadly relevant issues like sustainability, transparency, and fair employment practices. In 2024, this expectation has only intensified, with consumers gravitating towards brands that reflect their own values and beliefs.
Competitive Differentiation:
The key to success in a saturated market is differentiation. Brands like Patagonia, which has made environmental activism a cornerstone of its identity, have shown that a strong purpose can lead to fierce brand loyalty and long-term success.
Employee Engagement
Purpose-driven brands tend to attract and retain employees who are passionate about their work. A study by Deloitte revealed that mission-driven companies have 30% higher levels of innovation and 40% higher levels of retention. When employees believe in the purpose, they are more motivated and committed to contributing to the company’s success.
Principles of Purpose-Driven Branding
Authentic!
Your purpose must be genuine. Consumers are quick to spot when a brand’s mission is just a marketing ploy. True purpose goes beyond words and is demonstrated through consistent, transparent actions that align with core values, such as Procter & Gamble’s campaigns addressing diversity and equality. Brands that put people at the heart of their decisions and evolve their purpose over time build deeper connections, foster trust, and cultivate a culture that resonates with both customers and employees. This authenticity drives growth and establishes the brand credibility.
At the core, and the surface.
Purpose shouldn’t just be a tagline—it should influence every aspect of your business. This includes your product design, marketing strategies, customer service, and even your company culture. Every touchpoint in the customer’s journey and organisational culture
should reflect your brand’s purpose, ensuring a consistent and authentic brand experience.
Profits by impact
While financial success is essential in brand longevity (survival), purpose-driven brands understand the relationship between the impact they are making and profits. Setting measurable goals related to your purpose and regularly assessing your progress is the pathway in achieving success in this model. Brands that transparently share their impact with consumers build greater trust and loyalty.
“The business of business is improving the state of the world. Companies can do more than just make money; they can serve others.” Marc Benioff, CEO of Salesforce.
Case Study: Unilever’s Sustainable Living Plan
One of the most prominent examples of purpose-driven branding is Unilever’s Sustainable Living Plan. Launched in 2010, the plan aimed to decouple the company’s growth from its environmental footprint while increasing its positive social impact. By 2020, Unilever reported that its Sustainable Living Brands were growing 69% faster than the rest of the business and delivering 75% of the company’s growth .
Unilever’s CEO, Alan Jope, summed up the importance of purpose in their strategy: “In the future, every Unilever brand will be a brand with purpose. We know that when we serve our customers, we also help to serve the world.”
Assessing Your Brand’s Purpose
To evaluate how well your brand aligns with purpose-driven principles, consider the following questions:
- Is your brand’s purpose clearly defined and communicated?
- Does your purpose resonate with your target audience’s values?
- Are your business practices aligned with your brand’s purpose?
- Can you measure the impact of your purpose-driven initiatives?
- Are you consistently sharing your brand’s impact with consumers?
The Future is Purpose-Driven
As we move deeper into 2024, the importance of purpose-driven branding will continue to grow. Brands failing to define and live by a clear purpose risk being left behind in a space of strategic increasing values, authenticity, impact, and social responsibility. Whether you’re a startup or an established business, integrate purpose into your brand strategy. By doing so, you’ll not only meet the evolving expectations of consumers but also drive meaningful change and create lasting value for all stakeholders.
Join the Conversation
What does purpose mean to your brand?
Share your thoughts in the comments below, or connect with us on LinkedIn to continue the discussion.
#Purpose #PurposeDrivenBranding #BrandStrategy #Sustainability #Authenticity #SocialImpact #SocialConscious #Social Responsibility #BusinessGrowth
About the Author:
Stefan Rampersad is a brand strategist with a passion for helping businesses and the people behind them find and live their purpose. Connect with Stefan on LinkedIn for more insights in brand, creative and digital strategy.
