The Power of Purpose: Why Purpose-Driven Businesses Succeed

Purpose-driven businesses grow up to 5 times faster than their competitors. But what exactly is brand purpose? Let’s find out.

What is Purpose?

Purpose is not about what your business does or sells. It goes much deeper.

Your purpose is why you exist: it's the positive difference you want to make in the world.?

As human beings, purpose is the core driver of our most important decisions and motivates our most daring actions.

A strong sense of purpose is very powerful in enabling an individual to achieve long-term goals, especially when facing adversity and setbacks.

Purpose also instantly creates a deep connection with others. It creates instant rapport and trust.

In a world where everyone is seeking meaning, purpose is what connects us and makes us feel part of something greater.

In his famous TED Talk ‘How great leaders inspire action’, Simon Sinek explains that ‘people don’t buy what you do, they buy why you do it.’

Accenture’s report ‘To affinity and beyond’ states: ‘Companies looking to build their competitive agility need to find new ways to stand apart. Purpose provides the differentiation that many seek.’

A sense of purpose, both for businesses and individuals, is vital to the sustainable achievement of ambitious long-term goals.

"People don’t buy what you do, they buy why you do it" (Simon Sinek: "How Great Leaders Inspire Action")

How does being purpose-driven improve business performance?

An authentic and inspiring purpose is the best differentiator. Purpose is a core differentiator that sets your business apart from competitors.

It’s what customers and employees connect with, enabling your business to recognise emerging opportunities first.

Purpose-driven businesses also tend to outperform those without one. For example, Unilever’s purpose-led brands grew 69% faster than the rest of the business in 2019 and delivered 75% of the company’s growth.

Additionally, purpose drives innovation and attracts and retains the best talent. Business leaders prioritising purpose see higher market share gains and grow three times faster on average than their competitors while achieving higher workforce and customer satisfaction.

Moreover, PwC’s research shows that millennials who strongly connect with their company’s Purpose are 5.3 times more likely to stay.

Purpose-driven businesses also tend to outperform those without one. They grow 3 to five times faster on average.

Why it's vital to communicate purpose effectively

Communicating your purpose well is as important as having one. A poorly communicated purpose is the same as having no purpose at all.

To effectively articulate and communicate purpose, put it at the heart of your brand.

Having a well-communicated purpose will powerfully connect you with your audience. This will give you a lasting competitive advantage in an age of constant disruption.

Conclusion

In conclusion, having a clear sense of purpose is vital for business success today.

Data shows that purpose-driven businesses can grow five times faster than their competitors and are more resilient during disruption and economic uncertainty.

Purpose drives innovation, attracts and retains the best talent, and provides a core differentiator that sets your business apart.

By effectively communicating your purpose, you can build deep connections with your audience and create a lasting positive impact on the world.

To get started with purpose, enrol Acacia's FREE brand strategy course here.

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