how entrepreneurs can discover their brand purpose

24 Aug Finding Your Brand Purpose

Posted at 18:42h

Do you have a clearly defined brand purpose?

Do you even know what a brand purpose is?

Before we get to that definition, let’s address one misconception: that company purpose and brand marketing is fluffy window dressing designed for owners’ egos, rather than profitable strategies with a real, measurable ROI.

In fact, there is plenty of evidence that companies with clarity of Purpose outperform the market by a 9:1 ratio over a ten-year period. (1)

In other words, meaningful companies driven by a higher Purpose, drive profits. Purposeful brands outperform the stock market by 133%, gain 46% more share of wallet and achieve results that are double those of lower-rated brands. (2) The same applies to intangible benefits, such as customer and employee loyalty

What is a brand purpose?

A definition

Your brand purpose can be used to define and frame your vision, mission, and values. In fact, they all go hand-in-hand as core principles behind your operations and company culture.

This is not the same thing as your mission or values statement.

While your mission and vision have more to do with your goals, and your values may be connected to your company culture, your brand purpose is all about discovering your “Why – your reason for being in business.”

Examples of purpose-driven brands with a strong sense of “Why”:

  • Dove wants the “average” woman or girl to feel beautiful, strong, confident.
  • Range Rover and Air B & B focus on our natural human desire for adventure and exploration.
  • Lush Cosmetics and The Body Shop exclusively supply ethically produced beauty products, which appeal to people who place a high value on social sustainability.
  • Harley-Davidson represents a commitment to freedom, and their customer loyalty is evident in the fact the Harley logo is one of the most common tattoos in the world.
  • Luxury brands like BMW don’t focus on the actual wealth of their customers, but rather the experience that their target customers seek.
how entrepreneurs can discover their brand purpose

Even luxury car brands like BMW are purpose-driven with a strong sense of why

All of these international brand and your brand purpose need to achieve the same outcomes:

  1. Solve a problem
  2. Meet a societal need
  3. Have a social, ethical and/or emotional element
  4. Link with passion and heart
  5. Be unique enough to highlight your brand through time
  6. Be relevant and relatable enough to draw in new customers

Finally, your brand purpose should strike a balance between targeting your ideal customer base, while being open to new markets.

Purpose-Driven Brands Generate More Profits

Overall, purpose-driven brands do better in the stock market and attract more loyal employees and customers.

This Kantar Purpose 2020 study based on over 20,000 customer interviews suggests that purposeful brands have the potential to grow twice as fast as their counterparts. (3)

The reason seems to be all about choice:

Consumers are faced with countless choices, most of which are more accessible than ever before. Faced with two choices equally accessible (affordable and readily available), they are more likely to make a choice based on how they feel about the company, rather than something more tangible, like the price…

For instance, if they know company #1 donated a portion of profits to a cause they care about they’re probably going to choose that company over one they know little about.

With a clear purpose, you add meaning to a customer’s decision—something they aren’t likely to forget.

So, how do you do this?

Uncovering Your Brand Purpose

Your brand purpose is probably already a part of your organization; the point of uncovering it is to refine it, define it more clearly, and explicitly use it to drive your organization.

Here are some questions to consider:

  • What do you believe in?
  • What are you willing to fight for?
  • What principles and values are your customers committed to?
  • Why are you offering (hint: it’s not just “price” but maybe offering a lower-income category the chance to feel beautiful)
  • Is this something that is meaningful and true to you personally? To the organization?
  • How well will your statement stand up in the face of major economic, social, or political change?
how entrepreneurs can discover their brand purpose

There are many questions to consider when uncovering your brand purpose

Your brand purpose should be meaningful, unique, and coherent through time and the different facets of your company operations.

As an entrepreneur or manager, your job is to keep it on the forefront, keep it explicit as your company grows, and repeat it often.

Create a Brand Purpose Statement

To create a purpose statement, you’ll first want to articulate your reason behind starting your business (instead of profits, something closer to your heart), then make it the core behind your company operations.

This isn’t like a mission statement or elevator pitch that you repeat dryly robot-like. Instead, your brand purpose statement is something you can claim with conviction—a succinct, powerful, and genuine statement.

Here’s where to start:

  • Trust your gut
  • Be authentic
  • Don’t overthink instead just look for your “Why”
  • Start with an action word
  • Look for deeper meaning
  • Make sure the context can be understood universally
  • When you say it to yourself and others it feels “right” because it demonstrates integrity
  • Keep it at five words

Download your free Guiding Purpose Strategy Framework.

Discover Your Brand Purpose Today

Because your brand purpose is a short statement it may seem like you don’t need much time to create it.

But this is about redefining and refining your entire brand – the way the world sees your company – even the way you run your organization.

Your brand purpose can help you reimagine possibilities – even reignite your passion, fueling your business forward, and helping your team stay engaged.

Check out The Brand Marketing Booster to discover new systems and strategies which will help you to solidify your purpose and grow your business to new heights.

References:

  1. In the 1994 classic Built to Last, authors Jim Collins and Jerry Porras studied breakout companies that had a “sense of purpose beyond just making money.”
  2. According to the Havas Media Group meaningful Brands outperform the stock market by 134%.
  3. The Kantar Purpose 2020 study defines the Why of Purpose as: “Today, employees want to do more than just sell cars. And today consumers want to buy more than just a car.”