What is the purpose of your business? What does it exist to do? And why do the answers to these questions matter so much, writes Colin Byrne of Totem
Why is purpose suddenly so in vogue again? If you follow any branding blogs, you are likely to have come across a lot more references and discussions around the importance of ‘Brand Purpose’ - and for good reason. This is because right across industries, businesses with purpose at their core, are being seen to outperform ones that do not. And truly transformational growth is increasingly being traced back to organisations that have found and embraced their purpose.
According to Deloitte, ‘purpose is simply everything’. They report how purpose-driven companies are seeing higher market share gains than their competitors. They have three times faster growth in addition to higher workforce and customer satisfaction.
So what exactly is purpose again? In its simplest terms, your brand purpose is the reason your business exists beyond making money.
Some confuse it with mission and vision, but it is much more high level than that. Marty Neumeier’s The Strategic Pyramid, illustrated below, offers a simple framework for understanding each element and how they work together.
In Association with
Another caveat is to be careful not to confuse your purpose with your Corporate Social Responsibility objectives. Your charitable giving, how you give back in your communities and how you would like to contribute to the greater good are fantastic, and important. But they are not the same as your brand purpose. That needs to relate to what your organisation and brand actually provides.
Imitators need not apply
Brand purpose is not a gimmick - it is fundamental to everything you do. It is not a fad or a marketing and sales tool. Organisations that try to take a shortcut and just use it as a quick tool to capture more market share, without fully looking at what it means to be a purpose driven organisation, will be quickly shown up.
It requires honesty, authenticity, and integrity across everything you do. You must embrace your purpose properly and whole heartedly. And you must have an appetite for change – because it will impact on every aspect of your business. Albeit in a positive way.
Why is purpose so important now? What is changed? Well, consumers have. A different generation of conscious consumers has grown up and emerged as the ones driving growth – Gen Z.
These customers make choices that reflect who they are and what they stand for. They no longer buy brands - they join brands and they want an active role. When they encounter your brand, they will filter your service claims, product features and brand benefits through a lens of ‘so what?’.
As the benefits of being purpose-led are being quantified more and more, many large organisations and multinationals have begun their journeys to try and tap into it. They have been putting huge resources behind uncovering, actioning, living, and sharing their purpose.
And this is where SMEs have a distinct advantage. Because, for many, their purposes are often still very close to the surface. They may not be able to articulate clearly what they are, but often the original founders still have a hand in the business. And there is a purpose that is innately steering all business and growth decisions.
There is a sense of shared values across the team around what is important. Have you ever used the phrase, ‘I don’t know? It’s just not us’? Then you have a purpose lurking there. You need to understand what an untapped asset you have hiding in plain sight, and you need to clearly communicate this purpose.
Bringing clients on this journey is core to our approach in Totem. We help organisations and brands discover what their purpose is – to give clarity and meaning to what they do and why. Then it’s up to them to leverage their brand to attract and connect with their target audience and develop a loyal customer base.
• Colin Byrne (pictured) is founder and creative director of Totem in Waterford. Contact him at hello@totem.ie or visit www.totem.ie
