Six Reasons Company Purpose Yields Higher ROI
We’ve learned technology has propelled from the Information Economy into the Purpose Economy, a new economic era described by Aaron Hurst as one that connects people to their purpose. It’s an economy that gives employees and society a purpose while giving people an opportunity to be part of something bigger than themselves.
To truly understand this trend and how brands can play a part in this new era, we need to understand people’s search for their meaning in life and how the millennial generation that is driving purpose forward; why brands are discovering their purpose; and how a promise can illustrate a brand’s commitment to purpose.
When people are passionate about their work, they pour their energies into performing their job to the best of their ability. It’s from this observation that we derive meaning and understand how it is driven by three specific, connected needs. To observe meaning in our life, we must face challenges, grow with individuals, and have strong relationships with those around us.
Humans seek purpose because it gives us a sense of direction in life, in addition to acting as a buffer against mortality rates.. That purpose comes when we know we have done something that we believe matters, such as serving others or working for a greater social cause.
Millennials are drivers of a new movement towards finding purpose. 50% state they would buy from a company that supports a social cause. These emerging adults, ages 18-29, are open-minded and considered the least self-actualized generation out there in the world. Their millennial values are defined finding meaningful work and discovering their purpose are their primary motivators for success.
A recent PwC report shows CEOs expect their customers and employees seek to understand purpose and
that demand for purpose will increase nearly 300% by 2020. Customers reward the brands that meet greater social needs, like sustainability and social policies, and big corporations like Deloitte and Pepsi realize purpose is a mandatory 21st century business imperative. Instead of measuring a business’ success in financial terms, brands need to go beyond the money and empower their employees to become part of a process that is bigger than themselves. Purpose driven profit is more than long-term financial success; it’s about building a relationship that provides some meaning in life for your employees and customers.
A brand promise is more than words on paper; it’s an extension of your company’s positioning and gives businesses leverage over the brand experience. A promise is one way to motivate your clients and employees, and a promise to purpose can define your business in the competitive marketplace.
Brand purpose is more than a motivation; it’s the heartbeat of your organization, the reason why you exist and why your employees walk into your office day after day. A purpose inspires meaning and as humans, we seek to find meaning in our life above everything else. As we enter the Purpose Economy, securing your brand’s purpose will be the organizing principle that determines the value of your organization and helps build long-term relationships with those around you.
Unilever, for example, is a pharmaceutical giant that has promised to pursue environmental sustainability and tops the Radley Yeldar’s 2016 list of top 100 companies with social purpose. In keeping their brand promise, Unileverenjoys positive ROI and empowers their employee team to think about how they can make a difference in the world. To get to Unilever-like success, brands need to identify their purpose and, perhaps most importantly, ensure their entire team from top to bottom buys into this purpose.
Kevin Bugielski is the Marketing Manager for Victory Lap, a purpose-driven startup changing the sales game. Avid Snapchatter, SoulCycle lover, newfound runner, but ultimately, a foodie.