How to Build Purpose-Driven Brands
There are three core benefits of focusing on building a purpose-led brand over one that’s purely profit-driven. Interestingly, it is the purpose-led brands that grow faster and generate greater returns.
Employee Engagement
Purpose motivates talent and catalyzes productivity
— When employees believe in their company’s purpose, they are more likely to be passionate about their work and to be committed to the company’s success. This leads to increased productivity, innovation, and customer satisfaction.
Customer Loyalty
Today’s customers are more likely to engage with marketing that aligns to their values.
— Customers are increasingly looking for brands that share their values. They want to support businesses that are doing good in the world, and they want to feel good about the brands they choose to buy from.
Profit & Growth
Purpose-led companies grow 3x faster than the competition
— Studies show that ultimately purpose-led companies are more profitable and grow faster than their competitors by attracting top talent, increasing customer loyalty and driving innovation.
Why purpose-led?
Refocusing a company to be purpose-led improves employee engagement which in turn, drives customer loyalty, builds brand equity and growth.
A more inspired and engaged workforce improves productivity and drives teams to create greater value for the customer. Ultimately, business growth allows you to build your team and create more value.
The brands that will thrive in the coming years are the ones that have a purpose beyond profit.
— Richard Branson
Employee Engagement
Employees are increasingly looking for companies that share their values and are committed to making a difference in the world. A purpose-led company can offer employees a sense of meaning and purpose in their work, which can lead to increased job satisfaction and productivity.
A focus on people also helps attract and retain top talent. Employees want to work for companies that they believe in and that are making a positive impact on the world. A company with a strong purpose can provide its employees with a sense of meaning and purpose, which can lead to increased productivity and engagement.
A strong purpose can be a powerful driver of innovation and success for a company. If you are looking to grow your business, consider developing a strong purpose that will guide your company’s strategy and decision-making.
Employee productivity
If a satisfied employee’s productivity level is 100%, an engaged employee’s level is 144%, but the productivity level of an employee that is inspired by and aligned to the purpose of their employer is 225%.
— Source: Bain & Company 2015
Workforce retention
Purpose-led companies have 40% higher levels of workforce retention than their competitors.
— Source: Deloitte Insights 2020 Global Marketing Trends Report
Customer Loyalty
A purpose-led company builds stronger relationships with their customers. Customers are more likely to support companies that they believe are making a positive impact on the world. When customers feel like they are part of something bigger than themselves, they are more likely to be loyal to your brand.
Consumer engagement
79% of consumers are more loyal to purposeful brands. 78% of consumers said they would tell others to buy from their companies and 73% would share content about that company.
— Source: Cone/Porter Novelli 2018
Profit & Growth
Transforming into a purpose-led company can directly improve profitability. Studies have shown that purpose-led companies are more profitable and grow faster than their competitors. Purpose-led companies are more innovative, more efficient, and more resilient.
Growth
Purpose-driven brands grow 3x faster than competition
— Source: Jim Stengel and Millward Brown, Grow 2011
Financial performance
When companies or brands are linked to a purpose, 80% of them outperformed the market. Only 32% of non-purpose led brands managed to perform better than the market.
— Source: Kantar Millward Brown, 2020
Conclusion
Transformation begins with finding your brand's purpose.
Our strategic purpose-led approach to branding helps you find your core values, brand personality, and mission. Through this approach, we help our clients find their purpose, and craft the most compelling brand.
We start every project with discovery. We learn about your history, your industry, competitors, and customers. Through our brand strategy approach, we use our brand strategy workshop tools to reveal your core values, vision, and mission. We build all of this into your brand purpose which we can leverage in the visual identity.
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About BrandWerks —
BrandWerks is a design resource company focused on advancing the practice of brand strategy.
We know that brand strategy can be a difficult beast to master. We create Brand Strategy Templates and resources that help designers, agencies, and brand strategists master brand strategy.
Our tools are actionable and fully customizable and founded in a commercial approach that helps guide you and your clients through the process.