Max Firsau is co-founder and CEO of Accel Club. He is a serial entrepreneur with over 15 years of e-commerce experience.
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It is sometimes said that a great consumer product sells itself. If that were true, we wouldn’t need a sales and marketing department, but it isn’t. (I’m sure brand managers will be relieved to hear this.) Product experience still matters. But beyond product features and benefits, today’s discerning customers are increasingly looking for brands that share their values and stand for something beyond just making a profit. In other words, consumers want to know if they can trust the brand.
Do your customers trust you to do the right thing? That could be a fair return policy, a sustainable supply chain, authenticity, putting people before profit, etc. Brands are expected to demonstrate consistency in aligning their operations and strategies with their purpose, values and ethos.
According to a Edelman Report 2018, two-thirds of consumers around the world said they would buy from or boycott a brand solely because of its stance on a social or political issue. We have witnessed big brands like Balenciaga And Victoria’s Secret held accountable and forced to reconsider their actions and ethos. It is clear that consumers are not afraid to use their social media voice and purchasing power to effect change.
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What does it mean to be a purpose-driven brand?
A purposeful business is not just a trend or strategy deployed to bring in customers, but it is part of the DNA of your brand that your company lives by. The responsibility lies with the brand owners and leadership teams to define the values and work ethic that are common across all areas of the business.
A brand’s purpose can be kept simple and down to earth. In fact, it must be achievable and measurable. A good example is The honest company which was founded to provide “safe products, simple solutions and clear information” to consumers so that they can make better decisions.
Integrating purpose into business operations can take many forms, from adopting sustainable practices to supporting social goals such as community building, inclusiveness, accessibility, etc.
Your brand purpose shouldn’t be a best-kept secret. Formulate it clearly and simply for the consumer. When shared effectively, there are many benefits.
Take, for example, Allbirds’ approach to shake up the clothing industry. a certified B Corporation, Allbirds has implemented environmentally friendly practices such as using renewable materials and energy and regenerative agriculture. They keep their promises to provide comfortable, eco-friendly footwear in a sustainable way. Their marketing campaigns include strong phrases like “fashion pollutes the planet” and “the most comfortable shoes in the world.” Their customers seem to agree, as Allbirds is a billion dollar sneaker brand since its inception in 2016.
Another example is Airbnb. The company’s nonprofit Airbnb.org, launched in 2017, has more than helped 100,000 people need temporary shelter– including those displaced from their homes due to natural disasters, refugees and frontline workers and first responders. This initiative brought together hosts who want to actively contribute to a more inclusive and supportive society. Leveraging its existing technology and network, Airbnb found success by embracing purpose in its operation.
How do brands balance profit and purpose?
Integrating purpose into business operations is not without challenges. One of the biggest challenges is the balance between profit and purpose.
Rising operating costs – from inventory and logistics to borrowing and rising interest rates – can derail our social and/or environmental goals. For this reason, brand owners must be realistic and understand the resources required. Think creatively about how you can do things differently or use technology to streamline processes. There will be compromises, so be honest with your team and customers about what you can deliver.
Another challenge is maintaining transparency and accountability. Substantiating claims with concrete actions and measurable results is no sinecure. Consumers are adept at greenwashing and other forms of false advertising, so it’s important for brands to be honest and transparent in their communications. Consider the quality of your information to build trust. Provide helpful content about your products or services to give customers more choice.
It takes time and discipline to create great things, so start small and build up your processes. Despite these challenges, as consumers demand more from the companies they support, targeted companies will be better positioned to succeed in the modern marketplace by actively listening and building a loyal customer base. In the long run, purposeful brands can play an important role in shaping the future of commerce.
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Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.