No Indeterminacy in Brand Purpose

A part of American avant-garde composer John Cage’s quote about people being afraid of new ideas went on to say, “I’m frightened of the old ones.”

Cage, who passed away in 1992, was known as the pioneer of musical indeterminacy, music for which some aspects of a composition are left open to chance or an interpreter’s free will.

Brand Purpose

When the Harvard Business Institute did research on the business case for purpose for EY Beacon Institute in 2015, the findings were rather surprising. Only 37% of the 474 executives polled admitted that their business model and operations were aligned with their purpose. The pandemic and events of 2020 have shown that our younger demographic audience, Gen Z and millennials, tend to be swayed toward brands whose values align with theirs, but very little study has been done recently about brand purpose.

The Harvard study does provide a good baseline for brands looking ahead. It divided respondents into three groups: prioritizers, developers and laggards. The prioritizers (39%) said their business purpose was understood and clearly articulated. The developers (48%) reported that purpose was not understood in all departments, while the laggards said that purpose was not communicated or understood at all.

The Value of Business Purpose

Suffice it to say, those companies which had a business purpose experienced revenue growth greater than those that didn’t. Even then, a Cahners-Rabb Professor of Business Administration at Harvard Business School was quoted as saying that a company’s purpose must reach beyond shareholder value. It wasn’t until 2019 that the Business Roundtable redefined corporate purpose to promote “an economy that serves all Americans.” The CEOs of 181 of some of the largest corporations sit on the roundtable.

A 2018 Accenture study showed overwhelming consumer support for brands whose purpose aligns with their values and beliefs. 66% cited a corporate culture that delivers, does what it says it will do, and is transparent as the top values that would cause them to buy from that company over others. A company known for treating its employees well (65%), improving the environment (62%), maintaining ethical values, and being passionate about its products (62%) also rated high on respondent lists.

Defining the Brand’s Purpose

An earlier article looked at the number of Gen Z and millennials who switched brands they had been patronizing during the pandemic based on a difference of values. Clearly-defined brand purpose can give the brand a well-defined character, make it stand out, and help drive more customers to it. Here are some things to consider in regards to brand purpose.

Beyond the question of what a business does, there are two basic questions that must be addressed in moving forward. One is what makes the brand different from its competitors. The other is the reason for the brand’s existence. It’s the second question that is the centerpiece of brand purpose. What the brand stands for and believes in pulls in target audiences by using emotion.

Another way of thinking about purpose is to look at one’s favorite charity and its leaders and supporters. Like brands, they, too, want to generate revenue, but everyone involved in the charity deeply embraces its purpose. Brands with a clear purpose can achieve that same loyalty with a clear purpose.

Seven Questions to Answer

1. What led to starting the brand?
2. What’s unique about the brand?
3. How would the brand like to be known?
4. What problems is the brand trying to solve?
5. What does the brand offer that can change the world?
6. What would the brand want to do to change its industry?
7. What change does the brand wish its customers to see? Analyzing the answers and looking for a common thread should offer strong clues for a brand purpose statement.

Next Steps

Once formalized, share the draft of the brand purpose with trusted folks. They can be from both inside and outside the company. Revise it if necessary, and then announce it to the world.

Benefits

In addition to reaching a socially-conscious audience and building stronger relationships with them, a clear brand purpose has other benefits. It should help brands reach easier decisions over business goals, distinguish them from competitors, and recruit employees who share the same values.

Ronn Torossian is the CEO and Founder of 5W Public Relations. 5W PR is a leading digital pr and influencer marketing agency.