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 an overcrowded market, creates real awareness and attracts customers who share your brand's values. Author and management consultant Simon Sinek once said this 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 loyalty and loyalty. As early as 2021, there were 62% of consumers surveyed in the GFK Consumer Life 2021 study are more likely to buy from brands with whose values they agree. In addition, the brand purpose increases the commitment of employees, who are proud to work for a significant brand. It supports sustainable and responsible business practices, which are increasingly being demanded by customers. Finally, a clear brand purpose gives the brand a strategic direction and facilitates decisions that are in line with corporate values.
Based on a Harvard Business Review study, Forbes finds that companies with strong purposes 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, analyzing the potential effects and fundamentally defining your brand purpose is definitely worthwhile.
But how do you define the purpose of your brand? Start with an in-depth analysis of your brand: your story, 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 audience. 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 across 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 to find your purpose. The three interlocking circles relate to different dimensions of your brand.
Simon Sinek emphasizes that many companies communicate from outside to inside, i.e. explain first what They do, then maybe like they do, and rarely if ever, why they do it. Successful companies and managers, on the other hand, start with the “why.” They address the emotional level before they address the “how” and “what.” As a result, they can build deeper loyalty and trust with customers, employees, and other stakeholders.
Let's take a concise example: Apple.
By starting with the “why,” people feel emotionally connected to the brand and not only buy products based on their functions, but also because of the beliefs that Apple represents. Over the years, the Group has therefore understood how to present itself as a kind of substitute religion and generate a clear sense of belonging (“we vs the others”). It's almost beside the point 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, working intensively on your brand purpose is worthwhile. They 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 — paving 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 find your purpose and write your story together with you.
