The New Bottom Line: What is Your Brand Good For?

The business sphere, like the entire world, is changing fast. A new bottom line in town is turning the old playbook on its head. Gone are the days when companies could simply focus on product superiority or competitive pricing, and professionals would solely depend on and even brag about their expertise and experience in the field as all they needed to succeed.

Today, we quickly discover that success in business or career is no longer just about being good at what you do; it's about being good for something bigger. Aside from selling, brands must invest in values, social responsibility, and human connection, and this can only be founded on creating a purpose-driven experience.

But what exactly does this mean? How does this shift impact brands, and more importantly, how can your business thrive in this new era of purpose-driven commerce? New trends are reshaping the corporate landscape, and companies must adopt this new bottom line. The question is, what is your brand good for?

From Product to Purpose

Companies operating with the traditional business model focus almost exclusively on their product. The product must be innovative, reliable, affordable, or luxurious; it is the star. In the services sector, all the attention is on the client.

Marketing efforts revolved around telling the consumer what the product could do for them—solve a problem, save time, or make life easier. For clients, service providers work tirelessly to let the client know the exceptional services they offer. But today, consumers are asking more fundamental questions: What does your brand stand for?—the values you represent and, most importantly, how your brand makes the world better.

Several forward-thinking Nigerian brands are making significant strides by creatively integrating purpose-driven initiatives into product selling. These brands recognise today's consumers' perspectives. Customers now value companies that stand for something beyond profit and are increasingly driven by causes that resonate with social, environmental, and cultural impact. What unites these brands is that they are good for something beyond their product. They also commit to a higher purpose that attracts loyal customers, especially those who feel they are participating in something meaningful whenever they support these brands. They're selling not just shoes, ice cream, or jackets but values.

Virtue Over Value: The Rise of Ethical Consumption

Consumers are also evolving—becoming more informed, socially conscious, and selective about where they spend their money. When they shop, they look beyond quality and price. People increasingly seek value alignment. They want to make purchase decisions based on a brand's ethics, sustainability practices, and social responsibility. This shift in consumer behaviour is a crucial aspect of the changing market dynamics that you, as a business leader, need to be aware of.

This is where the new bottom line kicks in: virtue over value. The hard truth is that even the best-made product can lose its place to a lesser competitor if the former doesn't align with the customer's values. IBM and the National Retail Federation conducted a 2022 survey revealing that purpose-driven consumers—those who align their purchasing decisions with brands that share their values—now represent the largest segment across all product categories. This report indicates that 44% of global consumers prioritise purpose over value when making purchase decisions. 37% want value, convenience, and products and services that will simplify their lives. 15% trust brands and prioritise the brand when making purchasing decisions. Only 4% are focused primarily on product functionality and price.

Additionally, 50% of the respondents said they were willing to pay a premium for brands that promote sustainability and align with their personal beliefs, and an average of 70% said they could spend more on these products.

"Purpose" is gradually becoming more important in consumer choices. Brands must now align with values such as sustainability and social responsibility beyond offering a product that gives the customer value.

Brands make significant waves by emphasising transparency, ethical manufacturing, and sustainability. They bet big on virtues, knowing consumers are actively choosing products that are good to own and stand for.

Social Responsibility Over Selling: The True Currency of Modern Business

Brands that fail to embrace social responsibility may soon find themselves left behind. Consumers today expect brands to be more than profit-driven machines. They expect them to take a stand on social, environmental, and political issues. They want businesses to be part of the solution rather than contributors to the problem. This is not just a trend but a fundamental shift in consumer expectations that you must adapt to as a business leader.

The aftermath of major global events like COVID-19, the Black Lives Matter movement, and climate-related disasters has shown this shift. Bringing it home, the OccupyNigeria, EndSars, and EndBadGovernance movements also witnessed a change in customers' expectations of brands. Brands that were silent during these moments were quickly called out, especially on social media.

Brands must demonstrate social responsibility and genuine commitment rather than throwing money at a cause or crafting a catchy campaign. Authentic storytelling and social impact build credibility. Brands must stand by their values to ultimately reap the rewards of a sales surge, and then they will be lauded for backing their message with meaningful action. This emphasis on authentic storytelling is a crucial strategy to build credibility in the eyes of your consumers.

Connection Over Conversion: Building a Loyal Tribe

Consumers now crave genuine connection—rather than being sold to. They are increasingly resistant to hard-sell tactics and inauthentic marketing. That screaming "Buy Now!" traditional approach will no longer have the same impact it once did.

This is where brands need to shift their focus from conversion to connection. Brands that foster genuine relationships with their audience are more likely to cultivate long-term loyalty. This connection is built over time and fostered through consistent engagement, authenticity, and providing value to your audience beyond just trying to sell a product or service.

Brands must now gravitate towards building a community-first approach. Rather than focus solely on pushing sales, prioritise the customers, listen to them, incorporate their feedback, and create an inclusive environment that feels more like a community than a brand.

Nurturing connections earns loyalty and promotes advocacy. Customers who feel deeply connected to a brand are more likely to recommend it to others.

Transformation Over Transaction: Creating Lasting Impact

The era of transactional relationships between brands and consumers is over. Today, people don't just want to exchange money for products—they want brands that help them become better versions of themselves, make their lives easier, and contribute to a better world.

Apple is a master of this approach—promoting a lifestyle of creativity, innovation and forward-thinking, which people buy into in Apple products. Apple's branding has consistently empowered individuals to think differently, create fearlessly, and push boundaries. It's less about the transaction and more about the promise of transformation.

For example, a fitness brand can focus more on transforming into a movement rather than focusing on selling gym attendance through subscriptions and fitness equipment. Let your brand promise be about helping people transform their lives through health, wellness, and community, and then see how quickly you will build a loyal following. To survive and thrive in this new era, your brand needs to offer more than a product—it should provide a path to personal or collective transformation.

Thought Leadership: Leading with Insight and Inspiration

The marketplace is crowded, and thought leadership has become vital for brands to distinguish themselves. But this doesn't mean simply having a CEO with a blog or a CMO who tweets. Thought leadership requires profound, insightful, and authentic engagement with the topics that matter most to your audience.

Brands that invest in thought leadership can position themselves as trusted advisors, not just vendors. Through in-depth white papers, educational webinars, or insightful articles, brands that lead with knowledge and expertise naturally build trust.

Thought leaders "sell" knowledge, strategies, and support to individuals and businesses seeking growth. This has made them indispensable partners for thousands of people and companies worldwide.

So, what is your brand good for?

This is the fundamental question that every brand must now answer. You need to catch up if your brand is only good at making and selling a product. Today, consumers want to know your brand's higher purpose, values, and what you're doing to improve the world.

Your brand doesn't need to save the world—but it does need to contribute meaningfully to it. You can advocate for social change, promote sustainability, or create an inclusive space for your customers. You need to be good for something beyond the transaction.

The question isn't just "What can your product do?"—it's "What does your brand stand for?" Because business success is now less about what you are good at and more about what you are good for.