To gain the best employees and more ideal buyers, build a growing community, be more trusted, and boost revenue – businesses that stand for something bigger than their products and services – win more.
Standing for more than just your products and services differentiates your business.
Kantar Purpose 2020 study demonstrates that brands with perceived positive impact – which are perceived to be purposeful outperform businesses that are not or only partially.
Over 12 years of research, the brands with high perceived positive impact have a brand value growth of 175%, versus 86% for medium positive impact and 70% for low positive impact.
Purposeful Brands Grow Twice As Fast As Their Competition.
Kantar surveyed more than 20,000 consumers and conducted 100 deep-dive interviews with leading brands.
Twenty years ago, Simon Sinek, in his famous Golden Circles Ted Talks presentation, said that no one cares what you do ( Chemist, Cabinet Maker, Accountant) – or how you do it ( the processes) – they make decisions on – why – you do it. Purpose matters.
Increasingly, the well-being of both people (buyers, sellers, stakeholders) and the planet is the new operating system to achieve long-term prosperity.
Since the pandemic’s start, business loyalty has declined – over 25% of US and UK buyers say they feel no loyalty to any brand. Consider these findings
- Nearly half of the youth globally suffer from climate-related anxiety and subsequent eco-guilt.
- Another study found that young people’s pessimism about social and political climates has reached the highest recorded levels.
- Factor in the geopolitical disputes between Russia -Ukraine, China and Taiwan potential nuclear wars,
- The near-collapse of the USA democracy – Jan 6 coup attempt by Trump and his crew,
- The impact of Australian defence if the USA democracy fails,
- On TikTok, hashtags like #ecotok, #antiracism, and #ecohacks have amassed over 1.25 billion views. Think TikTok is just for young people? Think again. Over 200 million TikTok users are aged 35+ years.
- Over 80% of Australians favour much more decisive action on climate change from businesses and parliaments.
These events offer an opportunity to build a longer-lasting connection between your business and your future customers – through a bolder purpose – that collectively contributes to more significant change.
Regardless of industry, size, or age of business – your business’s purpose (other than making a profit) is a critical sign to potential buyers. Your business gets it – or not.
They see it immediately when they hit your website – see your marketing and job advertisements – the telltale signs of business with a bolder purpose are immediately evident – or not.
Your ideal future buyers now expect that businesses will
- think,
- act and
- communicate differently – with purpose.
Consider this (57%) of APAC buyers claim they stopped buying from businesses if they discovered they needed a better sustainability record.
Purpose and sustainability are critical pillars of building trust, credibility and authority with your ideal buyers faster.
For example, you are a Direct to Consumer seller of mattresses – your brand is K.
Typically you will have a
- 100-night free trial,
- The price point is between $899 to $1199 for a QS mattress – depending on the construction of the mattress,
- Interest-free offer,
- Free delivery,
- Reviews,
But rarely is their purpose – a bolder purpose – when you buy our mattress, you will also help save the planet by Y because of A and B and C.
Of course, the purpose could be a fantastic set of possibilities or potential changes – but with no apparent purpose aligned with your ideal buyers – your market share is LESS.
In 2019 Greta Thunberg said. Our house (the planet) is on fire.
According to the IPCC (Intergovernmental Panel on Climate Change), we are less than 12 years away from not being able to undo our mistakes – and the planet will spiral to be near unliveable.
As business leaders, you may or may not agree with the science.
But it is undeniable that your buyers do agree with the science.
If increasing total shareholder returns, profitability, business value and long-term sustainability – your purpose is no longer a nice to have extra – is a must-have.
What is your business’s purpose (other than to make a profit)?
