In a second stage, we began to see an interest beyond theory and catchy phrases to put in PowerPoint presentations, and we began to see a need from our clients to connect with brands that go beyond the commercial. And of course, when this is detected, companies begin to really get going.
The problem, as with everything, is that some do it seriously and many others do it merely for direct short-term commercial interest (and of course, by combining personal connection usa phone numbers list
with commercial interest, the results are not at all satisfactory).
So now we're at a point where some are making great strides and others think it's just another marketing term that will go out of style.
So the question is, is it really one of the keys to a company's success or just a passing fad?
I will try to demonstrate the value it brings based on concrete data and practical examples.
Before we dive deeper into the benefits of brand purpose, I invite you to explore our Marketing Guide for SMBs . This guide is designed to give you practical strategies and tools to improve your business’s marketing.
What is Brand Purpose and Why is it Important for SMEs?
Defining a brand's purpose involves identifying and communicating the core values that guide the company above and beyond its products or services. It's what allows them to connect on a personal level with their customers. Therefore, purpose is not only about generating economic benefits as a result of this connection, but also about contributing positively to society.
For SMEs, having a clear purpose can make a significant difference in terms of growth, customer loyalty and market differentiation .
If you want to learn more about the concept of brand purpose, here are three links about Ikigai (fundamental basis of purpose) and its definition:
What is Ikigai and how is it defined?
How to define your Ikigai with ChatGPT
What is brand purpose and how is it defined?
Benefits of Brand Purpose for SMEs
As I said in the introduction, I am going to try to show you, with data and examples, the value that purpose brings to companies.
Business Growth: Brands With A Clear Purpose Are The Ones That Get The Best Results
According to a Kantar study, brands with a clear and well-executed purpose can enjoy higher value and faster growth. One study showed that 80 % of top-performing companies tied everything they did to a clear purpose , compared to just 32% of underperforming companies.
My conclusion from this data for SMEs is clear. If the best in each sector align each of their actions with their purpose, it must be because it works for them, right?
In this regard, I have always been against the limiting thought of “this purpose thing is only for large companies.” I think the opposite. It is one thing for large companies to be more strategically evolved. But the reality is that it is much easier to implement and make purpose work in an SME than in a large company.
Consumer Loyalty: How Purpose Increases Customer Loyalty
In general, companies are almost entirely focused on attracting new customers, leaving loyalty aside (or at least putting it in the background). The reason is that we grow faster with new customers, but the reality is that taking care of our customers not only provides us with direct sales, but their recommendations bring a high volume of indirect sales. The problem is that it is more difficult to measure the cause-effect relationship.
If we look at Brandpie’s CEO Purpose Report 2023, 74% of CEOs see purpose increasing customer loyalty . In other words, if you apply it, it works.
This is especially important for SMEs, as they do not usually have a marketing budget that allows them to make a constant and powerful investment in customer acquisition. That is why customer loyalty should be one of the pillars of their strategy.
Purchase Intent: Consumers Prefer to Buy from Companies with Values
A study by the World Economic Forum and Ipsos has found that 70% of consumers in 25 countries prefer to buy from brands that reflect their own values . In emerging markets, this percentage is even higher, with around 90% of respondents expressing this preference.
This data reinforces the support of the purpose to sales, both direct from new customers and loyal customers, and indirect through recommendations.
Examples of Companies that Implement Brand Purpose Successfully
Inditex's brand purpose
On their website we can read Inditex’s brand purpose : “Seven brands. One purpose” and they explain it this way: “All our brands share the same purpose: to place the customer at the centre of our decisions. Through a wide range of categories and proposals, our aim is to responsibly accompany the lifestyle that our customers demand.” But without a doubt the definition of purpose that I like the most for its clarity and simplicity is that of Zara (1975): “fashion within everyone’s reach.”
There are many more examples in Inditex, but I would like to highlight two:
Zara Pre-Owned : sale of second-hand clothing to Zara customers.
Closing the loop (Inditex) : clothing recycling program.
Ikea's brand purpose
IKEA is known for its commitment to sustainability and improving life at home. Its purpose of “creating a better everyday life for the many people” is reflected in its affordable and sustainable products as well as its environmental initiatives. IKEA has implemented practices such as using recycled materials and promoting renewable energy, which has not only increased its popularity among conscious consumers but has also boosted its economic growth.