Only 9% of customers trust a brand when it says it has a deeper purpose.
Though early pioneers – Nike and Patagonia – achieved great success after establishing the contemporary brand purpose, it is not a cure-all. It does have great benefits - around 89% of consumers will pay a premium for a brand with an authentic purpose.
But with more businesses leveraging brand purpose now, consumer fatigue is slowing showing up. An Accenture study found that 53% of consumers disappointed with a brand’s words or actions on social issues complain about it. So, companies must understand that highlighting brand purpose is not a solution for short-term commercial performance but involves long-term vision.
Brands can conduct a three-step evaluation process: Ambition; Permission, and Resources. They should use evaluation insights to find out a suitable brand purpose that works for them. The brand purpose should be relevant to the company and consistent across all campaigns.
[8 minute read]