Defining purpose-driven and what marketers can learn from the 2022 Purpose Power Index
We talk a lot about purpose over here at Plum & Parcel and for good reason. Purpose matters.
Being a purpose-driven brand means you embed a broader purpose across every aspect of your business - from product offerings, to the way you communicate with consumers and the culture created for your employees. A purpose-driven business looks beyond profit and is committed to improving the communities and world around them.
Examples of strong, purpose-driven businesses include TOMS – an early adopter of the one-for-one business model, giving a pair of shoes to someone in need for every pair purchased – and Seventh Generation, which centers its purpose around creating a more sustainable, ethical world.
When a brand adopts a clear, differentiating and authentic purpose, consumers (and the media) take notice. Here’s an example.
The Purpose Power Index
Since 2019, the Purpose Power Index has measured the effectiveness of brands that activate purpose at the core of their business - a first-of-its-kind survey of U.S. consumers and employees.
The 100 most purpose-driven companies of 2022 were selected earlier this year (spoiler: TOMS and Seventh Generation both made the list!) based on an index of survey results that considers the following attributes:
Beyond Profits: has a higher purpose that’s bigger than just making money
Improving Lives: Improving the lives of people and their communities
Better Society: Does things to not just benefit shareholders, employees or customers but society as a whole
Better World: is committed to changing the world for the better.
So, what should today’s marketers take from the Purpose Power Index?
There is an incredible opportunity for purpose-driven brands - big or small - to effectively reach their target audiences today if they keep their higher mission at their core. Nearly 70% of survey respondents cited a brand’s purpose as a key factor in their purchase decisions. It also strongly increased the likelihood that consumers would recommend purpose-driven brands to others.
Corporate Social Activism has an important role to play in a brand’s reputation. In fact, today’s consumers expect companies to reflect their vision and values in their external communications, championing fairness and inclusion and taking a stand on social issues.
A company’s focus on purpose can have a positive impact on employees, as well. The Purpose Power Index revealed that there is a strong link between how engaged an employee is at work and satisfied they are with their job when they see their vision and values reflected in their employers’ purpose.
At Plum & Parcel, we’ve helped brands like Visa, YouCaring (acquired by GoFundMe) and Sevenly bring their purpose to the heart of their marketing and communications efforts - and we can help you, too.
Reach out when you are ready → plumandparcel.com/contact
