Why you should bet on your purpose.
Saying 2020 had a profound effect on everyone is the understatement of the century. When it comes to consumers, studies left and right show the crisis prompted changes in terms of routine, ways of thinking, and ultimately buying, forcing new consumption patterns to emerge.
“Today’s consumers are making decisions based on how companies treat their employees, how they treat the environment, and how they support the communities in which they operate. ”
Research shows that purpose-driven companies witness higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce retention and customer satisfaction.
This is more than a fad. New generations are growing up with a deeper sense of purpose than previous ones, and are seeking out products from companies that directly support causes aligned with their values.
Here are three reasons why you should bet on your business’ purpose.
Purpose = Differentiation
By aligning their purpose with doing good, organizations can build deeper connections with their stakeholders, amplifying the company’s relevance in their stakeholders’ lives. Purpose-driven companies report having more satisfied employees that stay with them longer. Deloitte’s 2020 Global Marketing Trends study shows purpose-driven companies report 40% higher levels of workforce retention than their competitors.
Less time spent filling in high-turnover positions translates into higher levels of productivity and innovation – in the same study, purpose-driven companies reported 30% higher levels of innovation than the competition.
Purpose = Profit
Using purpose as a north star helps organizations drive their operations towards outcomes consumers value, putting them in a better position to deliver on their wants and needs.
According to Deloitte’s consumer pulsing survey, more than 80 percent of consumers would be willing to pay more if a brand raised its prices to be more environmentally and socially responsible or to pay higher wages to its employees. While it’s been a few years we’ve been hearing this trend, consumers are finally ready to walk the talk and reward companies helping them achieve their goals.
Purpose = Loyalty
According to the 2020 Zeno Strength of Purpose Study, consumers are more likely to trust, champion, and protect a brand that is making a positive social and environmental impact, they are 4.5 times more likely to recommend the brand to friends and family, and 6.0 times more likely to protect that brand in a challenging moment.
In a world flooded with options, being able to garner your audience’s loyalty is everything, especially if you are looking to have a successful business. Leading with purpose and being authentic in how they communicate their impact allows companies to outpace their competitors while leaving an indelible mark on everyone they touch.
Are you convinced yet? Stay tuned for our next blog post in which we deep dive into articulating your purpose with impact and in a way that resonates with your audience.
References
Deloitte 2019 Consumer Pulsing Survey in the United States, United Kingdom, China, and Brazil.
Deloitte 2020 Global Marketing Trends
2020 Zeno Strength of Purpose Study
