Introduction
Having a beneficial impact on society, despite its historical relevance, is not something that modern companies naturally do. In some ways, this approach contradicts everything we have taught ourselves about business over the last several decades. This notion is growing more widespread in today’s culture. At the same time, the core of the continuous revolution taking place to address the multiplicity of difficulties we face in terms of sustainability is the unity of a company’s energy to improve economic welfare through being purpose-driven. The term “conscious capitalism,” which has seen significant growth in popularity over the past several years, is used to characterise this shift in perspective on the purpose-driven effect of companies and brands. Despite its long history, people are using it to ensure that companies and brands make a positive impact. This is a challenge that we must overcome.
Why should purpose-driven matter to brands and companies?
We must ask ourselves: How can brands and companies make a difference at a time when our society is undergoing a revolution that will be remembered as the greatest significant change in human history? We are now in a position where we must get along with every node in our network and in every system we create. This is especially true in the business world, where it is changing how brands interact with customers, the motivations behind corporate strategy, as well as how we conduct business and drive a greater purpose. Since ancient times, people have understood that a company’s name or brand is one of its most important and valuable assets. This approach forms the basis of a company’s strategy. If the process of branding is successful, even though it takes a long time, consumers will view businesses as having greater value and relevance, and therefore long-standing brands need to enforce a purpose-driven strategy.
Since the beginning of this decade, various authors have shown a significant growth in interest in brand purpose. Harvard Business Review and Fast Company have identified “purpose” as the central idea that companies and brands ought to focus on if they are serious about achieving success in the twenty-first century. Top consulting firms have recently issued research stressing the significance of purpose-driven from the viewpoints of both customers and companies. E&Y (2016) stated the difference between having a purpose and a license to trade in the new era of the twenty-first century in their report on purpose-driven strategies. 62 percent of customers, according to Accenture (2018), would prefer for businesses to construct their purpose around contemporary and relevant concerns such as sustainability, transparency, and fair employment. In a survey by Edelman (2018), 53 percent of individuals had more faith in companies to confront and solve social concerns than they do in governments. A study by Deloitte showed companies that have a purpose-driven experience have greater gains in market share and can grow three times more quickly than their competitors.
Key ingredients to build brands during a purpose-driven era
1. Brand Purpose is at the heart of brand existence
The fundamental question of why the brand even exists is at the heart of a company’s mission, which may be summed up as the brand’s purpose. The mission of a company serves its employees and other entities as a definition of the company’s objectives and competencies. In contrast, the purpose of a brand is to serve customers and other stakeholders from the outside. According to Accenture (2018), the underlying substance that makes a brand relevant and necessary in the market is referred to as the brand’s purpose. Kantar Consulting (2019) provided a definition of purpose that emphasised brands making a good impact on the lives of individuals and the world in general. A purpose-driven strategy is a longer-term and more strategic decision that entails embedding the purpose of the company into the brand identity, image, and also the entire business model. The brand’s purpose should be founded on how the social or market reality might be improved, especially if it’s to generate a sense of belonging.
2. Brand Experience to attract brand loyalty
Sensations, thoughts, feelings, and actions people take in response to a brand are the components that make up the concept of “brand experience.” A relationship of emotional attachment to a brand is predicated on a feeling of trust and purpose. The associations and attitudes that are prompted and established in the minds of consumers are what make up a brand’s image. A consumer’s brand loyalty can be measured by the frequency with which they buy the same brand. An experience with a brand can be conjured up by brand-related stimuli, such as those included in the design and identity of a brand, as well as its packaging, communications, and settings. Brand experience is a customer’s multiple experiences with brand-related stimuli supplied by the manufacturer to generate an overall impression. It is necessary to have a better awareness of how customers position purpose and meaning in their lives to have a deeper comprehension of the brand experience. Consequently, developing a resonant brand experience can lead to positioning and establishing unique associations in the mind of the consumer.
3. Brand Love a relationship that lasts with customers
Recently, the topic of brand love has gotten a lot of attention in the marketing world. Relationships between brands and their customers are built on well-known emotions and a sense of belonging. For love to thrive, an intimate, deep relationship must include the brand. Love is characterised by a desire to shed the extended self or unite lovers with others, like consumers and brands. A pleased customer’s mental map of a brand’s identity is sometimes referred to as “brand love,” and it refers to the intensity of their emotional attachment to a business or product name. This emotional attachment is truly a connection of self-purpose that a customer would have towards a brand. The concept of “brand love” refers to the long-term relationship that exists between a company and its customers as a direct result of recent trends in which companies have begun to prioritise their brands to maintain a sense of purpose and remain pertinent to their customers. To succeed, the company must have an in-depth grasp of the cognitive, behavioural, and emotional aspects of the customer. The physical and emotional experiences that a person has with a brand are incredibly crucial aspects in determining whether or not that person has a positive reaction to that brand. The way a potential buyer views a product is vital when deciding to buy it. Customers place a large degree of importance on the hedonistic pleasures that can be derived from using those goods and services. The relationship that brand love has between brand loyalty and brand purpose must be brought to widespread attention.
4. Brand Image connected to brand statement of purpose
Brand image refers to customer impressions of a brand based on brand connotations. These brand associations are kept in the minds of customers. The customer’s other informative nodes in their memory that are linked to the brand node might provide insight into the significance of a brand for the customer. These nodes are referred to as brand associations. The image of a brand is built from the consumer’s pre-existing notions and mental pictures of the brand, in addition to their memories of their prior knowledge and attitudes regarding the product. These elements come together to form the consumer’s mental image of the brand. When it comes to branding, it all relates to embedding a product or service with the strength of a brand’s image and the essence of the brand’s statement of purpose. The formation of a brand image and the provision of substantial methods to separate oneself in the minds of customers are both possible outcomes that can be achieved via the process of branding. Purpose-driven branding and attending to consumer needs are two strategies that can be applied to attain both of these goals.
5. Brand Loyalty the essence of purpose
In highly competitive markets, brand loyalty is vital. It’s not always possible for a brand to build strong consumer relationships through brand loyalty. Customer retention can be boosted by creating a strong emotional bond with a product or service. As a result of their “connection” with the brand, customers are said to be “loyal.” Customers must have a personal connection to a brand if they are to remain loyal over the long run. When customers have a strong emotional connection to a brand, they are more likely to be loyal to it. As a result of the extra value they see in the product and the likelihood that they would spread the word about it, customers who are loyal to a brand are more inclined to spend more money with it.
Conclusion
A ‘brand guarantee’ is a sort of quality assurance since a brand includes both the product or service and the imagery customers associate with it. Clarity and trustworthiness are key to building brand loyalty, especially in a world where customers expect brands and companies to be more responsible. Customers trust a brand’s authenticity when it is connected to a greater purpose. Socially the political companies are more credible to customers than those that aren’t. Genuine brand activism allows a company to differentiate itself from competition and create emotional connections with customers, increasing its brand value.
Michael Kouly
"The purpose of your brand is to represent your purpose."
Accenture
"By standing for something bigger than what they sell, tuning into customers' beliefs and taking decisive action, companies have the chance to recast their customer relationships and connect with consumers on a deeper level."
Richard Branson
"The brands that will thrive in the coming years are the ones that have a purpose beyond profit."
I hope you have found this article worth sharing through your network and thanks in advance if you choose to do so! Please #share if you find it helpful.
If you have any other ideas you would like to share or topics you would like to read and learn about, please add them in the comments section.
