Attracting loyal customers
Why Purpose Matters in Branding: The Numbers
Branding with purpose is the bridge between the core of your organization and your customers. When you coalesce your organization behind a higher meaning, you cease to provide just a product or service, you provide an experience. One of shared ambition and loyalty. One people are craving.
Eighty-one percent of consumers believe a company can take specific actions that both increase profits and improve the economic and social conditions in their community. And it’s not just that they want to see brands they use show more ambition in their efforts, they’re ready to jump to those whose beliefs align with theirs. Ninety one percent of consumers would switch brands if a different one of similar price and quality supported a good cause.
It seems almost all companies think they have a purpose. We can all say we want to help those less fortunate, stop world hunger and solve environmental problems, but consumers can smell a crook from a mile away. They want to see what you’re doing about it. Failing to communicate not only what you stand for, but how you do it, is a common pitfall many companies find themselves in, and it certainly costs them customers. Seventy-five percent of companies describe their higher purpose in terms of social or human benefit, yet only 11 percent demonstrate how it’s implemented. This disconnect doesn’t go unnoticed by the consumer, indicated by the fact that only 20 percent of brands worldwide are seen to meaningfully and positively impact people’s lives. But just because they don’t see the impact doesn’t mean they’ll leave, right? Nope - nearly half of all consumers say they will not purchase from a brand if it fails to communicate the meaningful impact it’s making.
These numbers indicate there’s a strong desire for companies who do good, but what’s in it for the brands? Research shows a purpose-driven relationship is mutually beneficial. When beliefs align with the consumer’s, a connection is developed that goes beyond the typical buyer-seller dynamic. There’s a sense of loyalty tying back to your shared purpose. In the end, if you are both working toward the same goal it develops a sense of community and togetherness, and the more an organization does to create a meaningful impact, the more a consumer will get involved. In fact, 71 percent of consumers would help a brand promote its products/services if there is a good cause behind them, and the same amount are willing to pay a premium for products from these companies.
The evidence is there staring us all right in the face. Consumers want more from their interactions with brands and they’re willing to pay more to get it. They’re tired of lip service. They want purpose. It’s high time companies started giving it to them.