The purpose-led business model is on the rise and for good reason.
There have been countless market surveys in recent years to evaluate the ascent of purpose-led business and the results have been telling.
These have covered every aspect of this business model which goes beyond what the market dictates from a customer perspective.
Just one year ago, and only weeks before we went into full lockdown here in South Africa, and indeed the world too was coming to grips with the global Covid-19 pandemic, Forbes published a concise register of the multitude of surveys that have been done on the purpose-led business model.
Links to the two-part analysis can be found at the end of this blog, but for your convenience we have compiled some of the most compelling takeouts.
Of course, Bigger Than Me founder, Greg Viljoen, was convinced that purpose-led business was the future which is why he started this creative social change agency to focus on cause-marketing and shared value business models.
READ: Cause Based Marketing- Why every brand needs it!
Purpose-led business
A simple Google search reveals purpose-led business to be:
“Purpose-led businesses take people, their experiences and their well-being, as the primary end or aim of what they do. They look beyond the role – ‘Head of Accounts’ – to the whole person doing the work. They treat people who walk into the shop as individuals rather than simply ‘high-value prospects’.”
“Purpose describes the very core of what a company does, and for whom it creates value. … Leading with Purpose is good for morale and for business but as the world’s leading companies are finding, employees often sense a gap between what leaders say and what the business actually does.”
Strong customer relations, communication and legitimate purpose to your business can no longer be ignored for long-term brand success and growth.
The results are in and they tell the story.
Consumers / customers
The first objection we often hear when a purpose-led strategy is being considered is ‘do my customers actually care as long as my prices are competitive and my products/service provide the desired quality?’
Well, yes, actually they do and this is the changing face of the consumer, circa 2020.
In fact, the global pandemic has shone further light on the significant role that brands and industry need to play in leading purpose-led objectives in their businesses.
Consider these stats:
66% would switch to a new product from a Purpose-driven company. 91% of just Millennials (born 1980–1994) polled said the same. – The Cone/Porter Novelli survey
The impact is global! An Edelman Earned Brand study showed that 50% of consumers across U.S., China, India, Mexico, U.K., The Netherlands, Germany, Brazil, Japan and more are now belief-driven buyers with this figure rising to 60% (Millennials), 53% (Gen-Z).
In fact a Fuse Marketing analysis suggests that among Gen-Z which comes after Millennials, born between 1995 and 2015, ‘consumers are 85% more likely to trust a brand, 84% more likely to buy their products, and 82% likely to recommend that brand to their friends and family.’
Loyalty and advocacy are two cornerstones of a successful brand and the results on these are equally compelling.
Sustainable Brands and Harris Poll revealed that “80% of people are loyal to businesses that help them achieve the Good Life.” Notably 76% of these pollers regard making a difference in the lives of others as necessary for living the ‘Good Life.’
In 2018 the Edelman Earned Brand study claimed that 64% of consumers surveyed globally will buy a brand or boycott that brand based solely on the social or political stance.”
One more compelling survey result to consider about consumers…
The shift toward conscious consumerism also reveals that the market is prepared to pay more for a brand/product or service that is considered eco-friendly or to have a positive social impact. A Nielsen study shows that 2 in 3 consumers will pay more from brands that show a commitment to positive social change and/or issues.
Brand advocacy is where we see the most significant statistical rise and common sense tells us why. It is human nature to share one’s support for positive initiatives. In fact many consumers wear this badge proudly and rightly so.
According to the Cone/Porter Novelli survey as high as 78 % of consumers encourage others to support the purpose-driven they use and 68% are even willing to share content on their social media channels over those from traditional companies. 73% will stand up for a purpose-led brand if spoken badly of.
To read the full articles on Forbes, click the links below.
The Power Of Purpose: The Business Case For Purpose (All The Data You Were Looking For Pt 1)
The Power Of Purpose: The Business Case For Purpose (All The Data You Were Looking For Pt 2)
In our next blog we look beyond consumers as we unpack the other mitigating factors to leading a purpose-led business model.
Here are some more related blogs to digest. Remember to drop us a message on the form below if you’d like more info on how to stategise and implement purpose into your business.
- Eight questions every purpose-driven brand should ask
- Social Impact: Why Brands should be moving from ‘for profit’ to ‘for benefit’ model
- Purpose-led businesses are gaining relevance says Unilever CEO
- What are socially conscious brands?
- A Socially Conscious Brand business model is the future