The importance of brand purpose in marketing explained

What is your WHY? It seems like a simple question, but ‘brand purpose’ is becoming more and more important: if you Google ‘why is brand purpose important’ you’ll be served roughly 883 million links about it.

A brand purpose essentially clarifies what your company does, and why they do it. This seems straightforward, but chances are if you ask a CEO, a marketing director, and a customer service manager at the same brand that question, they will all give you different answers.

At a recent event hosted by CIM Scotland in social media agency Hydrogen’s Glasgow office, we discussed why it’s important to know your why.

The importance of values in your brand purpose

Sinead Thomas, Head of Marketing and Communications at Children’s Hospices Across Scotland (CHAS), recently faced this very issue as the charity underwent an exploration to find its brand purpose.

“As an organisation the what and the how you do it will change but the ‘why’ you exist should never change. It’s easy while your organisation grows to lose sight of this so a clear ‘why’ helps you align yourself with the values and beliefs of customers,” she explained.

And with research showing that 72% of US consumers feel it is more important than ever to buy from companies that reflect their values, knowing these values is key.

How does brand purpose change?

Keith Crane, Group Research Director at market research agency 2CV, stated “It’s important to remember every brand has a purpose…there’s a reason why your business started!”

However, for some brands, the problem is remembering their purpose and making their ‘why’ obvious.

This can also change as the business grows, adapting to where and who they are targeting. Keith pointed out that brand purpose is quite a Western idea, and that with global brands you can see different brand values depending on what matters most in that region.

Keith noted that different generations are also more likely to focus on purpose and value to different levels. Gen Z and millennials are more likely to take brand purpose into account when choosing what to buy. Research from Edelman found that over half of adult Gen Z say they’re willing to pay a premium for brands that earn their trust and improve the world. However, this works both ways, as the research also noted that 41% of consumers told us that they have bought, or boycotted brands based on their response to the Russian invasion.

For a slightly older demographic, such as Gen X, brand purpose is important but not as key, as they are more brand loyal: ‘I do want to make a difference but have been buying this for 20 years, so why would I spend more?’.

Sinead agreed that the generational split can play a role in brand purpose. For charities, she said, they aim to become an intrinsic part of who you are as a person. People are choosing if they can stand with you and what you do as a charity. This becomes embedded over time, she said: a third of CHAS’s income comes from legacies (gifts in wills). Those who have supported the charity for over 10 years are much more likely to stay loyal to the charity and consider leaving a gift to them.

Three tips to create and showcase your brand purpose

1: Ask what your audience wants

Listening to what all stakeholders wanted was the first stage for CHAS, with Sinead saying they asked what is strong about what the charity does, and what these people value the most.

For CHAS, the underlying themes of love, care, respect, and time were mentioned.

2: Be authentic

“Authenticity works through the mode of transparency,” Keith stated.

Authenticity goes out the window when companies hide that they are there to make money. It’s much easier for a young fledging company to gain trust, as they are more likely to be open and honest about their reason for being and their brand purpose. When brands get bigger, this can become muddier.

Having a brand purpose and beliefs is important…but don’t hide that you are also a business!

3: Embed it in culture

Your purpose cannot just be a ‘marketing thing’: it has to be embedded through your company like a stick of rock.

Sinead advised: “You need to underpin the entire people strategy with purpose…making sure it is embedded there.” This, she says, helps it “become part of cultural change and not a ‘marketing thing’.”

“But it all has to start from that cultural fit: the right people to come and deliver it,” she added.

Keith agreed: “You can’t do it in silos, you need the right people.”

What companies are good at sharing their brand purpose?

So, what brands share their brand purpose in a clear way?

For Keith, Oatly does well. He cites the creation of the F*ck Oatly website: a website created by the brand itself to hold its hands up and admit mistakes.

“I’m impressed by how they responded to things,” he said. “The thing that gets me the most brands live purpose internally with employees but not outside [the business]. Brands willing to own up to mistakes engender long-term loyalty and growth.”

Sinead looked at RNLI as an example of a brand that lives by its brand purpose and values: after a negative comment about the charity from a politician, they responded by stating their beliefs. This led to a 3000% increase in donations, with £200k raised in a single day.

“If you believe you have the right course of action…it allows you to stand up for why you exist and allow people to challenge you,” she said.

In all, having a brand purpose is essential: and it starts from within. If you don’t know your brand’s ‘why’…it’s time for a conversation.