The Rise Of The Purpose-LED Brand

Consumers are increasingly preferring to buy goods and services from companies that stand for a shared purpose that reflects their personal values and beliefs, and are ditching those that don’t

In an era of radical visibility, technology and media have given individuals the power to stand up for their opinions and beliefs on a grand scale. This power, reflected in everything from the #MeToo movement to the growing intolerance for “fake news,” is infiltrating every aspect of people’s lives, including their purchasing decisions.

Companies are under the spotlight like never before as they struggle for competitive advantage in the context of this reality. Their customers aren’t just making decisions based on the stalwarts of product selection or price. They’re now assessing what a brand says. What it does. What it stands for.

Accenture Strategy’s most recent global survey of nearly 30,000 consumers found that 62 per cent of customers want companies to take a stand on current and broadly relevant issues like sustainability, transparency or fair employment practices. The closer a company’s purpose aligns to their own beliefs, the better.

Companies that don’t step up pay the price. More than half (53 per cent) of consumers who are disappointed with a brand’s words or actions on a social issue complain about it. That’s not surprising. Customers have always complained. What’s different now is that 47 per cent walk away in frustration, with 17 per cent not coming back. Ever. Consumers’ expectations that brands align with their personal values is a challenge for companies that underestimated the bottom-line impact of neglecting to stand for something bigger than what they sell. Or falsely believed they could avoid taking a position on hot-button issues.