Navigating Brand Purpose: 6 Strategies for CMOs

At this year’s ANA Masters of Marketing Annual Conference, brand purpose was identified as one of the top 12 things CMOs should focus on to foster growth in 2018. This wasn’t a huge surprise, as purpose has been a top initiative for many CMOs for some time now. Particularly the Fortune 500s, many of which have taken concrete steps towards purpose. However, few have been able to effectively implement it across their entire organization in a way that delivers upon the intended promise of purpose—growth.

There are several reasons for this. First, it’s not easy to identify a worthy purpose that the entire company can rally behind. Employee motivation and passion for a company’s purpose is critical to increased productivity. Instead, many make the mistake of “rolling out” their purpose, rather than letting their employees and customers play a significant role in creating it. Additionally, the activation of purpose often requires many companies to behave in ways to which they are unaccustomed. This includes things like rigorous transparency and honesty (with all stakeholders), value-led leadership and conscious communication practices. Finally, by not tying the right measurement goals to their purpose, many companies fall short of driving authentic impact. Instead they let a conceptual vision win out over tangible objectives.

Brand Purpose Defined.

So exactly what is purpose? Purpose is at the core of your company’s strategy. It gets to the heart of why you exist and is considered an aspirational reason for being. It’s at the very center of your brand. Purpose serves as a call to action for your employees, customers and stakeholders. It informs your company’s decision making across the entire value chain. Finally, purpose benefits individuals, communities, business or society in a tangible way that is measured.

Purpose is not a marketing campaign or a siloed corporate program. Those efforts typically fall into what’s called cause marketing, social good, or corporate social responsibility. Additionally, purpose is not about “doing good” or being a force for good in the world. This is a misconception, even though, many companies have a purpose that achieves demonstrable societal or environmental impact. However, this is not a requirement to be considered a purpose brand.

Finally, purpose is about growth. It's not a marketing trend or fad, but rather a fundamental consumer-driven paradigm shift that has significant economic implications. Companies who have effectively created and implemented purpose are seeing growth rates anywhere from 4x to 14x versus companies without purpose.

CMOs Often Lead the Charge

CMOs are often at the forefront of identifying and advocating for purpose, because of their close alignment with the consumer. They’ve been among the first to see that consumers prefer brands with purpose. It is the CMO who is seeing that consumers are aligning themselves with the brands who best represent their own values and hold space for important cultural conversations. Additionally, as consumer expectations around honesty and authenticity continue to evolve, it’s the CMO who best understands that purpose has to be treated as much more than a marketing initiative. Instead, as a company-wide endeavor. It must be lived, not just told.

Six Strategies for Navigating Purpose

Making the case for purpose, getting stakeholder buy-in and then evangelizing it across the entire organization can be a daunting task for even the most experienced CMO. Here are six strategies CMOs can employ as they first make the case for purpose and then later evangelize it both internally and externally.

1. Make it about growth, not ‘doing good.’ Anchor your case in the significant growth benefits of purpose. While “doing good” is often a benefit, purpose drives profit and revenue. Additionally, purpose is fast becoming a necessary condition for growth, with the average tenure of Fortune 500 companies continuing to decline. Contrasted, purpose brands are seeing growth rates of over 4x*. It’s an economic reality that can’t be ignored.
2. Reinforce that purpose is an employee mandate. People crave meaning and fulfillment in their lives and are turning to their place of work more and more to provide this. When they find purpose in their work, they are more productive. Unfortunately, roughly 68%* of the U.S. workforce are currently not engaged at work. Meanwhile, purpose-driven companies are seeing higher productivity and retention rates and are also attracting top talent.
3. Make it about the consumer. Another critical point to reinforce when making your case for purpose is to highlight how consumer behavior has fundamentally shifted. People want and expect brands to play a greater role in their lives. They are selecting and staying loyal to brands that honor their values and have a purpose beyond profit.
4. Be authentic + Don’t pursue without buy-in. You must have buy-in from key stakeholders before pursuing purpose. It’s a company-wide pursuit, not a marketing initiative. The potential backlash from treating purpose solely as a marketing campaign isn’t worth the risk. Your customers and employees are too smart and can easily see through an inauthentic, half-measured effort. Additionally, you risk disrespecting people’s values, beliefs and lifestyles.
5. Be honest about progress. Implementation of purpose across your entire value chain isn’t easy but necessary to fully realizing the benefits of purpose. The good news is that it doesn’t need to be done overnight, so long as you are honest about your progress. Honest and open communication with all stakeholders, including obstacles encountered along the way is paramount. Additionally, treat them as a sounding board as you troubleshoot issues along the way.
6. Bring in outside help. An independent consultant or advisor can not only ensure you’re successful, but also validate the effort. When we initially meet with a client, we start by drilling down to the core of what’s driving the potential shift. This serves not only understand the business at large and gauge alignment possibilities, but to identify all potential conflicts, both internal and external. A third party is best to help moderate and mitigate these obstacles.

*People on a Mission, Korn Ferry 2016 / **Gallup Poll, 2016