Purpose: it’s a big deal. To individuals, to businesses, to brands, to life.
If you look at life under a microscope lately, you’ll see some pretty intense things. The proverbial petri dish is full—overflowing, some might say. In between the COVID-19 global crisis, we’re grappling with longstanding issues of racism and inequality that have led to protests and social media blackouts. The volatility is increasing … and the microorganisms we’re watching are multiplying.
With those facts in play, your brand’s purpose is an even bigger deal. No longer can it remain exactly the same—businesses must shift to be more inclusive of current events, and leadership at all levels has to answer some tough questions.
Consumers aren’t satisfied with simply reading a mission statement on your website. They want to know the actions you’re taking to support social justice-oriented movements and why they should remain faithful to you. And, most important, they want it to be crystal clear. There’s no time for questions. Don’t dance a jig. Either you take a stand on important issues … or you’ll be left in the dust. The days of neutrality are over.
However, if there’s one thing all business leaders can agree on, it’s that the recent pandemic has united us in one way that most of us have not seen before. Our livelihood purpose is common; therefore, our business purpose must rise to meet it.
Even before COVID-19, this paradigm of purpose as a driving factor for profit has been in the spotlight. In 2019, more than 180 chief executives from the Business Roundtable shared a provocative statement that the purpose of a corporation should be to help other stakeholders such as employees, the environment and ethical suppliers. The board was so serious that it decided to create a special committee to advance racial equality and justice solutions this month.
Still not convinced that a defined purpose is imperative to profitability?
A recent global study reveals that when consumers think a brand has a strong purpose, they are:
- 4 times more likely to purchase from the company
- 6 times more likely to protect the company in the event of a misstep or public criticism
- 5 times more likely to champion the company and recommend it to friends and family
- 1 times more likely to trust the company
But it isn’t just any consumer. If your brand isn’t going after millennials, you may want to abandon your marketing strategy altogether—76% of them want to see CEOs actively using their platform to address important social issues. If you aren’t delivering on this promise, you’re leaving money on the table (aka consumers won’t be donning masks in your stores or calling you for your service). Forty-three percent of consumers walk away from a brand when left disappointed by that brand’s words or actions on a social issue. Let that one sink in.
So how do you shift or redefine your purpose in a time of uncertainty? Maybe you scratch it altogether and start anew. First things first: stay relevant as the world changes. Purchase patterns have drastically changed from basic-needs-only toward ethically-purchased-only. What is your company doing to be present and not stuck in the past?
Second, take thoughtful action. Whether you speak out on social media about specific issues in the news or make philanthropic donations to in-need organizations, you’ve got to do something.
After all, there’s nothing more powerful than purpose.
This post is part of a series on marketing during and after the pandemic. To read the others, follow this link.