The most impactful and outstanding brands in the world have one thing in common: a clear understanding of their purpose, their "Why".
While generating profit is undeniably an important aspect of any for-profit organization, it is not the sole reason for its existence. A brand's purpose goes beyond just financial gain and encompasses a much broader scope. It may include creating a positive impact on society, the environment, and the people it serves. It also involves upholding certain values and ethical standards that align with other brand statements.
Furthermore, a brand's purpose is a guiding principle that shapes the decisions and actions of the organization, both internally and externally. Thus, it is a critical factor in shaping its identity, reputation, and long-term success.
The Implications of the Brand Purpose:
A clearly defined purpose is not merely a philosophical exercise; it has tangible benefits that can significantly impact a company's success. Here are just a few compelling reasons why investing in defining your brand's Why is a worthwhile endeavor:
Enhanced Brand Value: When a brand has a clear and well-defined purpose, it can significantly enhance its overall value. This, in turn, can have a positive impact on the company's financial performance, leading to an increase in shareholder value and a more robust bottom line.
Superior Growth and Performance: Having a well-defined and clearly stated purpose has been shown to give companies a significant edge over their competitors, leading to increased growth and profitability.
Stronger Customer Loyalty: Consumers are increasingly selective in choosing the brands they engage with. Brands that are aligned with their customers' values and beliefs tend to be more successful in building and maintaining lasting relationships with them.
Motivated and Engaged Employees: Establishing a well-defined brand purpose also creates a sense of meaning and direction. As a result, employees are more likely to feel engaged, satisfied, and committed to the company's mission.
There are plenty of statistics to back the importance of a solid purpose. You can learn more in this article from one of my mentors in the field, Sarah Robb (the best writing on the importance of brand strategy I've ever read).
So, now that we've highlighted the importance of brand purpose, let's talk about how to define it:
One of the most impactful and straightforward approaches to defining your brand's purpose is the well-known Golden Circle approach, designed by Simon Sinek.
Simon explains that there are three levels to a company's value proposition:
WHAT they do
HOW they do it
And the most important one,
WHY they do it
To make it simpler for executives and marketing teams, at Strategic Studio, when working on these questions, we relate these three levels to more business and marketing-related terms:
The WHY: Your Brand’s Purpose
The purpose statement, which is also called the "mission" - though I personally believe the word "purpose" conveys a more profound sense - aims to explain why your organization exists. Why do you do what you do? This is the heart of your brand, the reason for its existence beyond making a profit. It's the driving force that inspires both your employees and your customers.
The HOW: The Unique Selling Proposition:
The answer to HOW you do things essentially aims to communicate what makes your brand different. How do you do what you do? What makes your approach unique and different from your competitors? This is where your Unique Selling Proposition (USP) comes into play. The key here is to focus on what makes you DIFFERENT; not BETTER, as the former is more realistic and achievable than the latter.
Finally, the WHAT: Your Unique Value Proposition:
There are plenty of formulas to write a UVP, but when defined alongside the other two elements, we use the UVP simply to answer the question “What do we do?" This goes beyond simply describing your products or services; it's about understanding the core problem you solve or the need you fulfill.
Let me give you a brief example to help you understand how straightforward this approach can be:
Brand: Strategic Studio
What do we do? We help impact-driven startups achieve success by creating strategic and distinctive brands.
How do we do it? By teaming up with bold entrepreneurs, and empowering them through a concise set of strategic and creative brand solutions.
Why do we do what we do? Strategic Studio was born to support the growth and success of disruptive projects that seek new ways to make a real impact.
In conclusion
Defining your brand's purpose is not just a trendy buzzword, but a strategic decision that can have significant impacts on your bottom line. Having a clear and compelling "Why" can help your brand stand out from the competition, connect with customers on a deeper level, and boost employee satisfaction. Although it may take time and careful consideration to articulate your brand's purpose, the investment is worth it. A well-defined "Why" can serve as a beacon, guiding your company's decisions, inspiring employees, and attracting loyal customers who share your values. So, embrace the journey of discovering your brand's purpose and unleash its potential to make a lasting impact.
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