Blog: Brand with a Purpose

In the future, the companies will no longer be able to say what they do, but will have to do what they say. 

Brand With A Purpose

Brand With A Purpose - Business of the Future

Marketing in the age of pandemic need all the intellectual resources of the professionals to target the right customers and also ensure brand stickiness. The challenge is magnified as the customers today are not only looking at the advertisements or the quality of the product, but trying to find out the ethos and principal of what the brand stands for. Customers today want to make responsible choices through which they can support social causes, remain accountable and more connected to the local communities. 

The marketing gurus and the researchers are well aware of the challenge and are already planning deeper level of engagements with the consumers that will also be bridging the gap between the community development and the consumers. in the process of reimagining this role of “brand communities”.

According to Forrester Research, business-to-consumer (B2C) marketers will increase their spending on loyalty and retention marketing by 15% in 2021, all the while cutting back on product or performance-based marketing.

The consumers, who are expected to engage with the brands in the virtual platform only, are empowered digitally today. They expect the brand’s communication and CSR strategies to add value that will converge with the personal values of themselves, i.e. the consumers. The spending decisions of these informed customers are governed by the recurrence of the thought processes.  

 

What will define the Stickiness of Customers

As Richard Branson said, “the brands that will thrive in the coming years are the ones that have a purpose beyond profit.” As responsible consumption, ruled by social causes, environmental sustainable governance issues and communal service becomes the transformative rule for next generation customers, acquiring new customers will depend on what the company’s credibility.

In this situation, the companies will no longer be able to say what they do, but will have to do what they say. And that will have to be believable, credible and sustainable. Putting purpose at the heart of brand communication will mean authentic storytelling, being their own self and living the brand purpose throughout the whole organization. For the first time, the employees will become much bigger brand ambassadors than the advertisements the companies put forward.

According to the 2018 Edelman Earned Brand study, “1 in 2 people are belief-driven buyers. They choose, switch, avoid or boycott a brand based on its stand on societal issues. Of belief-driven buyers, 67% bought a brand for the first time because of its position on a controversial issue. 65% will not buy a brand because it stayed silent on an issue it had an obligation to address.”

Brand purpose needs to go above and beyond being an expression of a company’s core value proposition and address issues that are of value to society or the environment, focused on the potential positive impact companies can have on society rather than the monetary benefits attached to supporting a cause.

Responses of the Corporates

According to Edelman’s latest “Trust Barometer,” consumers are looking at brands who are actively contributing to fight against coronavirus. 70 percent respondents said that they expect brands to adapt their operations, policies, and HR strategies to protect their employees.” Companies, as a response to the expectations have moved away from differentiating their products and philosophies, are joining hands to help the government, Covid warriors, frontline workers and the citizens.

In a time when a social media post, a comment, a tweet can go viral cutting across the image of the brands, the differentiator can only be created by trust.

As a study indicates, overwhelming majority –nearly 90% of respondents agreed that the purpose-based campaign reminded them of things they care about. Thus, purposeful communications show great potential to drive future growth for a brand, helping to build that trust. Companies now have the opportunity to demonstrate competitive agility by building more authentic and profitable relationships with customers.

Consumers are valuable stakeholders who today demands transparency at the corporate level in addition to meaningful products, services and promises, which in turn make them authentic third party brand champions.