It’s no longer enough for a brand to rely solely on a great product to attract customers. It’s now essential to showcase their values. In other words, brands should focus on the why, not the what.
Image Credits: Erik Mclean / Unsplash
Purchasing decisions are emotional
According to a recent study by Harvard professor, Gerald Zaltman, 95% of purchase decision making happens subconsciously, largely driven by emotion. So, a brand can share all the facts they like to show they have a superior product, but if they can’t connect with consumers emotionally, they won’t make the sale. Consumers are more likely to purchase from brands they feel share their values and trigger an emotional response. They’re also likely to continue to buy from it. According to a recent Deloitte study, 60% of long-term customers use emotional language to describe their connection to favoured brands. Emotional connection equals loyalty.
Consumers look for socially conscious brands
Consumers – especially millennials and Gen Z – have been drawn to companies that take a position on societal issues they care about. The events of 2020 – COVID-19, Black Lives Matter and the climate crisis – have accelerated this, particularly for experience-centred brands.
According to a 2020 CapGemini survey, 78% of consumers believe that organisations have a larger role to play in society than just looking after their self-interests. An Accenture report supports this, showing 52% of consumers are attracted to brands that stand for something bigger than just their products and services. By highlighting shared values with their target audience, companies can build stronger connections. This should lead to increased engagement and higher sales.
Purpose-led brands instil trust
Through deeper connections with consumers, brands can build trust. According to Accenture, 62% of consumers are attracted to buy from a brand that has ethical values and demonstrates authenticity in everything it does.
Authenticity is key. Organisations cannot just say they believe in a certain cause. They have to show it – in their supply chains, the way they treat employees, and their investments. If companies just pay lip service to certain values, they will lose trust.
And there’s a price to pay for this. Customers will walk away from brands who break their trust, which has a direct impact on revenue. For a US$30 billion company, the loss could be as much as US$4 billion.
Source: https://www.accenture.com/us-en/insights/strategy/trust-in-business
Strong values improves employee retention
It’s not just pleasing customers that businesses should be focusing on. Employee engagement is also important. In the same way you need to connect authentically with your customers, a brand also needs to build genuine affinity with staff. A McKinsey study shows 72% of employees believe that purpose should have more weight than profit. Yet, many feel that organisations are falling short.
Employee engagement is so important because they can be your brand’s greatest advocate. Social media means that you no longer have to be a celebrity to have a platform. So, your staff could become the biggest influencers for your brand.
All in all, by focusing on the values that drive your brand, and highlighting the why in everything you do, both for customers and employees, you stand to build strong connections which creates loyalty and, over time, growth.
