Credible Purpose. Transformational Results.

Purpose has its fair share of critics, and they have every right to criticise. Because when it’s done poorly it can be an entirely superficial exercise that leads to cliched, forgettable and ineffective work.

But when purpose is credible, that is to say when it is impactful, progressive, memorable, committed, and relevant (as we outline in our Purpose Pentagon model), the data shows it can be extremely effective. Unlocking transformational results both for the world and the business.

Working in a different way to traditional marketing, purpose comes with a wider breadth of benefits that cascade inside and outside the organisation, positively influencing consumers, employees and investors.

If we start with consumers, when deployed with depth purpose can be a truly potent marketing asset. Marketing effectiveness legend, Peter Field, analysed the historic purpose cases from the IPA Awards Databank and had this to say on the subject:

“If you are seen to be non-credible, or even hypocritical, and if your brand purpose in no way connects with the business of your brand, it isn’t going to stick.” (…) “when it is done well, when it is genuine and credible, brand purpose can be very powerful."

Field found credible purpose campaigns to be particularly effective in 4 areas vis-à-vis traditional ad campaigns: penetration growth, creating mass appeal, building mental availability and distinctiveness, and developing in-store presence.

For many, the pinnacle of purpose is Dove’s Campaign for Real Beauty, which over two decades has consistently challenged unrealistic beauty standards with a steady stream of arresting, award-winning work. Electing purpose as their primary long-term brand-building strategy, the campaign built a strong emotional connection with female consumers, creating $4.42 in incremental revenue for every $1 spent that saw sales jump from $2.5 to $4 billion over its first ten years.

Whereas for AMEX (and most other brands), purpose operates as a distinct pillar within the larger marketing strategy. With small businesses a key acquisition channel for their services, AMEX created a new day in the calendar to support them, Small Business Saturday. By inviting consumers to ‘Shop Small’, they’ve generated a massive $50 Billion in additional revenue for small businesses, while also increasing brand favourability amongst this vital customer group by 92%.

Turning to employees and the transformational results internally, Deloitte found purpose-driven companies benefit from 30% higher levels of innovation and 40% higher levels of retention versus their competitors. It stands to reason that people work smarter and harder, over longer periods, for businesses they believe in. And we’ve seen from our own experience how the most successful clients are often also the most motivated by their company’s purpose.

Purpose is clearly a pull for investors too. Businesses become more attractive investment propositions, as evidenced by the extraordinary growth we’re seeing in sustainable investing, and research from Dow Jones showing that sustainable investing is considered the number one growth opportunity by investment professionals. It also tends to represent a safer bet, with ethical companies enjoying a 50% higher level of stock price growth than the S&P 500. So with new investment flooding in, and shareholders feeling satisfied, it means a stronger capital position from which to fund expansion and growth.

The net result of all these cascading benefits for consumers, employees and investors is accelerated growth and a business that’s set up for success in the years ahead. In fact, Kantar’s landmark 12 year analysis found that purposeful brands grow more than twice as fast. Backing up the claim made by 80% of CEOs that taking action on social issues helps their businesses competitively.

So clearly purpose can deliver the goods. Building businesses and solving our greatest challenges can go hand in hand. The operative word being can, because it’s only possible when planned and executed with extreme credibility. Which is why we founded That Purpose Collective, to help clients do right by their brand as well as the world.

Hello, we’re That Purpose Collective. We have decades of experience working with brands to transform themselves and the world for the better. So if you’re a brand looking to start your purpose journey, or take your purpose to the next level, get in touch. We work fast, lean and without jargon.