A clearly defined brand purpose is essential for brands. Simply communicating which product or service you offer is often no longer enough today. Instead, you should work out the core of your brand, because this differentiates your brand and makes it stand out in a crowded market, generates real awareness and attracts customers who share your brand's values. Author and management consultant Simon Sinek once put it aptly: “People don't buy what you do; they buy why you do it.”
An authentic brand purpose creates a strong emotional connection that promotes customer retention and loyalty. As early as 2021, 62% of consumers surveyed in the GFK Consumer Life 2021 study stated that they are more likely to buy from brands whose values they agree with. Brand purpose also increases the commitment of employees who are proud to work for a meaningful brand. It supports sustainable and responsible business practices that are increasingly demanded by customers. Finally, a clear brand purpose gives the brand strategic direction and facilitates decisions that are in line with the company values.
Forbes, citing a study by Harvard Business Review, states that companies with a strong purpose outperform their competitors in the market by 7%, grow faster and are more profitable. The actual impact of your brand purpose ultimately depends on your industry, your product and your target group. However, it is always worth analyzing the potential impact and fundamentally defining your brand purpose.
But how do you define the purpose of your brand? Start with an in-depth analysis of your brand: its history, core values and strengths. Ask yourself why the brand was founded and what problems it wants to solve. Conduct market research to understand the needs and expectations of your target group. Involve internal and external stakeholders such as employees and customers to gain valuable insights into their perspectives. Your brand purpose must be clear, easy to understand and authentic to be credible. Integrate it into all areas of the company and communicate it consistently to ensure that it is understood and lived by everyone.
Simon Sinek's Golden Circle offers you a simple and efficient tool for finding your purpose. The three interlocking circles relate to different dimensions of your brand.
Simon Sinek emphasizes that many companies communicate from the outside in, first explaining what they do, then perhaps how they do it, and rarely or never why they do it. Successful companies and managers, on the other hand, start with the “why”. They address the emotional level before dealing with the “how” and “what”. This allows them to build deeper loyalty and trust with customers, employees and other stakeholders.
Let's take a striking example: Apple.
By starting with the “why”, people feel emotionally connected to the brand and buy products not only because of their functions, but also because of the beliefs that Apple represents. Over the years, the company has understood how to present itself as a kind of substitute religion and generate a clear sense of belonging (“us vs. them”). It is almost irrelevant that other manufacturers have proven to deliver better technology than Apple - from camera performance to battery life. What counts is clear: “If you don't have an iPhone, you don't have an iPhone.”
As you can see, it's worth taking a close look at your brand purpose. You give your brand an identity, recognizability and reach your customers on an emotional level. By giving your communication a common thread, you also simplify the planning of your communication measures - clearing the way for your unique brand story.
Do you want to breathe life into your brand and develop a story that binds your customers to you? Get in touch with us! With our expertise, we will find your purpose and write your story together with you.
