The purpose of a brand often becomes the center of attention, since this generates not only well-being in society or the environment, but also helps to make the behavior of a company transparent, to create connections and to make them stand out.
According to Bill Theofilou, Senior Managing Director of Accenture Strategy, Advanced Customer Strategy and Competitiveness Center of Excellence, a purpose-driven brand is headed for success.
How to define the purpose?
For him, purpose is defined as the reason why a brand exists. It is the underlying essence that makes a brand relevant and necessary for its stakeholders.
Companies have the duty to commit to
Chile Mobile Number List solving a problem, and in turn, support meeting a need. This commitment creates loyalty, affinity and connections.
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Companies need to ask themselves some tough questions: Why does the brand exist? What role does it play in clients' lives? What challenge does it solve? How would the world be different without him? They will soon discover what makes the company special and can use that to build stronger connections and greater relevance with customers.
Bill Theofilou
Nike, Dove and The Body Shop are examples of brands that live up to their purpose. This has allowed them to occupy a significant place among consumers, investors and more, and thereby catapult their growth.
All companies were founded with a core purpose, but many have neglected their origins in the journey to scale revenue growth or have struggled to evolve it, usually due to complacency, lethargy, or fear of polarizing customers.
Bill Theofilou
Currently, a large percentage of people no longer invest their time, money and attention in those companies that are only focused on producing regardless of the damage or cost.
They want them responsible
Research from Accenture Strategy reveals that consumers are considering brands before each purchase and are paying attention to companies that have a purpose they personally identify with and that reflects their values and beliefs.
This could be about important principles such as family connections, health and wellbeing, or broader social issues such as environmental sustainability. It depends on the category and the person.
Purpose-driven brands, like Lululemon, Lego, and The Walt Disney Company, see their stakeholders as more than just buyers.
Additionally, these types of companies prioritize cultivating deep relationships and try to stay relevant by knowing that customers can act as powerful advocates for brands they believe in and frustrate those they don't.
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An important characteristic of purpose-driven companies is that they highly value authenticity and transparency; They know customers won't tolerate anything less.
In this era of radical transparency, consumers can quickly detect whether companies are actually delivering on their promises or not.
Smart brands are committed to the beliefs of their stakeholders. They also harness the energy of their customers and involve them in everything from co-creating new products and services to using their knowledge to quickly test new features and capabilities.
Is the purpose profitable?
Bill Theofilou highlighted in the interview that companies represent something bigger than just what they sell. These often offer higher levels of business success because they mean so much more to their customers.
Companies like Unilever have seen first-hand the tangible value of making purpose a central driver of growth and differentiation. Nearly half of the company's top 40 brands focus on sustainability.
These “Sustainable Living” brands , including Knorr, Dove and Lipton, are growing 50% faster than the company's other brands and driving more than 60% of the company's growth.
The purpose of a brand allows companies the opportunity to grow in other markets or industries because they have achieved a state of trust among their customers.
Understanding how to instill a sense of brand ownership through a clear and relevant purpose has become a prerequisite for competitiveness.
Although this stops being profitable when interest groups realize that it is false. It has to be a true commitment and even more so in this digital age.
Two points to consider
To develop a higher purpose in your organization or if you want to work on what your company already has, there are two points that you must consider so that your strategies look authentic.
1. Make it aspirational
Your purpose may have some relationship with the business but it is not necessary.
For Bill Theofilou, these are three of his favorite purpose statements:
Airbnb: Belong anywhere.
Zappos: delivering happiness.
IKEA: to create a better everyday life for many people.
It may be better when the purpose of a company does not obviously translate into the nature of the business. Sometimes we live our purpose in ways beyond the scope of our service offerings. In a world that is always changing and innovating, having a purpose that can be fluid and adapt is a more sustainable approach.
