brand loyalty

What is a brand’s purpose and why it’s important

by Josh Biggs in Digital Marketing on 17th September 2021

A brand’s purpose is the reason behind a brand’s existence and what the brand stands for. Evidence shows that purpose-driven brands are more successful in all aspects due to various factors. They have better engagement with customers who become loyal to the brand and result in sustainable growth. They have better relationships with staff, and employees tend to stay longer, resulting in higher productivity. As a result of these factors, they make more profits. Having a clear purpose also helps brands remain focused and have clearer strategies that help them achieve this purpose. 

Current trends show that consumers are becoming keener on brands and are gradually gravitating towards brands driven by purposes which they find meaningful. This indicates how big an impact purpose can have on a brand and influence its success. There are numerous ways to identify your brand’s purpose, including reflection or seeking the services of a brand purpose agency. Here are a couple of ways in which a brand’s purpose is important

Brand Purpose helps to build trust around the brand.

Brand purpose explains the motivation behind the existence of a company. It’s an excellent way for customers to understand what their favorite brands stand for. Now more than ever, a brand’s purpose can capture new markets and inspire loyalty from consumers whose values align with those of the brand given how conscious consumers have become. Recent reports have shown that consumers are more likely to try out, stick to, recommend, and even pay more for brands that have a positive influence and whose purpose is to impact one area or another positively.

Purpose helps with employee retention 

One of the greatest impacts of a brand’s purpose is giving employees a sense of belonging to and contributing to something greater than themselves. As with consumers, workers tend to feel more fulfilled in positions where they feel their efforts positively impact. This fulfillment results in loyalty and higher retention, which is more cost-effective for the brand and promotes higher productivity.

Purpose Impacts Decision making

A brand’s purpose acts as a compass that directs its operations. Because it addresses the why’s and the how’s of the brand, it plays an important role in the way decisions are made and implemented. This impacts almost every level of decision-making, including how to achieve the brand’s goals, staff and customer relations, and handling conflict or adverse outcomes.

Brand Purpose can grow brands and increase profit.

Brands with great purposes easily attract and retain clients, leading to growth and steady revenue generation. Customers align themselves with brands that make the world better since they feel vital they also indirectly contribute to this better world through these brands. They, therefore, become more willing to spend money on, embrace, stay loyal to and advocate for these brands.

It helps the Brand Stay True to Its values and motivated

A clear purpose helps keep a brand in check as it acts as the manual for operations. Having your why’s at the forefront can come in handy during challenging periods or when faced with a moral dilemma.

Categories: Digital Marketing