Partly due to the explosive growth of the Internet during the early years of the century, consumers have changed their attitudes with regard to commercialism, giving rise to purpose-driven brands. Before, what they were concerned with is just the ability of the brand to deliver products and services that they will be able to use in an effective and efficient manner. Now, however, customers are known to pick products and services from companies that are socially conscious. The brand to customer relationship must be personal, warm, and beyond the triviality of sales.
Shift in Company Operations
The old-world Corporate Social Responsibility arms of companies are dead. Now people, especially those from the millennial generation, are demanding for a complete overhaul in how some businesses operate. How does this alter the current status quo? Before, companies were already concerned about “giving back,” with less or no regard to what and how they took out in the first place. Progressive politics has played a big role in people calling for corporate centers be responsible in the internal and the external activities of their companies.
This was especially seen in several electoral and referendum battles in recent months in Great Britain, the United States, and France. People have become tired of buying things just because they need certain products. They want to feel that what they purchase does not just line up the company owners’ pockets. One way the purposeful branding is rated in the United States is the Meaningful Brand Index by Havas.
Relevance Resonates Among Consumers
These days, frequent sales and discounts are no longer the only factors that have to be considered by consumers in choosing the brands they will be loyal to. Often, people always seek products and services from companies that they feel are relevant and have the ability to connect to them. Purpose-driven brands, especially, are among the ones that experience consumers actively interacting with them on social media. This usually translates to more interactions and sometimes, better sales.
This recent trend among consumers has made company owners pause. What is a brand purpose going to bring into the business? For one, they can make a core group of your loyal customers. According to a recent market research, an estimated 40 percent of consumers think that having purposeful brands are important. In another study, 87 percent of consumers from different parts of the world believe that it is as much a responsibility of companies to promote the interests of society as it is to make money.
This shift in the interests of the people is so great that a big flub can cause a sharp decline in a company’s fortunes. As an example, the scandal that hit a certain airline company that had a few guards dragging Vietnamese-American doctor resulted in a backlash in the stock market. Its shares dropped by a massive four percent in just a day after the issue went viral and the company’s market value nosedived by $1 billion.
Emphasis on Long-Term Client Relationships
Purpose-driven brands are benefitting well in their quest to adhere to certain values. According to Havos, the top 25 companies on its Meaningful Brand Index (MBI) have performed 120 percent better than their competitors. Being one of the purpose-driven brands in the market is also an effective way for companies to not cave to the urge for immediate financial returns to the company. Businesses tend to go for the traditional managerial logic of putting sales at the top of the priority list. Purpose-driven brands challenge that notion as what is emphasized instead is nurturing relationships with your consumers and clients.
Small Brands Have a Chance to Compete With Bigger Names
One of the main reasons why small companies are excited about the coming explosion of purpose-driven brands is it will level the playing field between them and the bigger, more-established businesses. Due to the great expanse of possibilities that the Internet offers, startups and up-and-coming companies no longer need to compete with bigger brands in spending a huge sum of money on marketing campaigns. They can just upload it on the various social media and video-sharing channels like Facebook, Twitter, and YouTube and wait for it to go viral.
At the end of the day, communication is an integral part in the success of any brand. For the business to succeed, the company’s identity as one of the world’s purpose-driven brands must be reflected in every ad, content or policy released or implemented.
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