What is the purpose of your company? If you have not figured it out yet, then you should get started. If you have a clear image of what it should be, we have good news for you. Purpose-driven companies are the next Silicon Valley startups in terms of relevance for the growth of the global economy.
We are experiencing a paradigm shift in business: the market is flooding with products and services, so customers are looking for that extra item which makes the difference between companies. And right now purpose is the golden ticket to success. Once a company has developed a clear mission statement and is consistent in embodying it in their CSR and marketing efforts, the sales will come and its reputation will grow.
But why does purpose mean so much for consumers and for corporate clients? Here are a few key reasons:
1. Purpose Induces the Feeling of Self-Actualization
Maslow’s scale of human needs put the need of self-actualization at the very top. It is the most advanced need, triggered by our characteristic of being social beings. We like to socialize with each other because we like to feel that we belong.
The need of self-actualization can be fulfilled in many ways: by supporting sports teams, joining clubs, political parties and supporting various charities and businesses. When they feel that a business shares their own values and beliefs, they will become its loyal customers.
2. The Right Employees Promote Creative Thinking and Excellence in Business
When a company has purpose, it attracts top talents who look beyond the paycheck. They want to feel that they are a part of something special. If the purpose of the company coincides with their goals, employees give their best: talent, experience, dedication, and loyalty.
Such company has all the chances to succeed, to stay innovative, and to offer its customers the products and services they want and need.
3. Purpose-Driven Companies Create Great Stories
The future of brand building relies on storytelling. People relate to companies that have a narrative they can identify with and they can believe as authentic. Purpose-driven companies can create such stories. From the CEO to junior employees, each member of the organization adds their own personal narrative to the brand story.
Added together, these narratives build trust and create strong brands — which are easily recognizable and whose marketing and advertising efforts are more effective for this reason.
4. Purpose-Driven Companies Turn Customers into Fans
Word of mouth has gained a new meaning in the age of social media. A product endorsed by a friend will be clearly preferred over another product, with a lot more promotion and advertising behind it. When a company is purpose driven, its customers become fans and brand ambassadors.
They are always willing to share their purchase on the social media, to refer a friend or a family member, and to support the brand with positive reviews and testimonials. This is what really makes a company thrive in the 21st century. And these types of companies are most likely to become the engine of global economy.
5. Purpose Is a Key Promoter of Shared Values
A purpose-driven company always looks at the bigger picture, at the way it can give back to the community. It becomes the glue that brings people together through shared value. CSR work is not just to make the annual report look good. It is genuine and determined to add value to people’s lives.
And these efforts turn into a positive cycle of higher spending power and more sales for the company itself. As the saying goes, whatever you send out, it comes back to you tenfold.
Last but not least, purpose-driven companies are organizations that believe in sustainable growth, beyond the immediate financial profit. They have a vision, of a better world for everyone, and year by year they bring the whole world closer to this vision.
This article was originally published on pldx.org.
