is more than a popular buzzword or indeed another 'P' to add to the mnemonic. It is a way of doing business that not only influences positive societal change,
but also drives company growth.
A survey of 1,006 Americans defined purpose-driven companies as "organisations committed to making money and making a positive impact on the world" with strong environmental practices, being a good employer, supporting critical issues and giving back to communities.
The majority of respondents said they'd buy from a business that leads with purpose, knowing they'd make a positive impact whenever they purchased from a purpose-driven organisation.
Corporate Social Responsibility or CSR – operating in a way that benefits society and the environment – is utmost in demonstrating purpose. A company's purpose brand strategy and social impact can demonstrate commitment to purpose, as can brand communications that emotionally connect consumers through issues they care about.
Articulating and activating purpose has become a critical component as CSR initiatives demonstrate purpose.
Approximately 8 in 10 of those surveyed felt that companies should work to address social justice issues including privacy and internet security; domestic job growth; access to healthcare; sexual harassment; racial equality and equal rights.
Connecting with consumers around issues they care about can nurture stronger bonds with them. 77% of respondents claimed to feel a stronger emotional connection with purpose-driven brands, and two-thirds felt that such companies cared about them and their families more than traditional brands. Many would pay more to a purpose-driven company.
Purpose can be more important than price or quality, in some instances. For example, in comparison to cost or quality-led companies, consumers are more likely to have a positive emotional connection with a purpose-driven company. By contrast, quality trumps purpose when consumers are thinking of buying products from a company, being loyal to a company and telling other people to buy products from a company.
At the end of the day, purpose should not be the only attribute highlighted in your marketing mix. It is still important to ensure your product is of high quality and sold at a suitable price. But articulating purpose may go a long way to resonating with your market and providing your business with unique points of difference.
At Collins Hume we believe real CSR comes from the giving and caring we can provide through our day-to-day actions. Check out how we do that at Our Giving Impact and, if you wish to discuss how you too can become a purposeful business just call us on 02 6686 3000. Together we can change the world.
Source: Purpose Pays, Consumers Say - Marketing Charts