Loyalty is Found Through Purpose for Brands

Purpose-driven brands are one of the biggest factors in determining customer loyalty. This week, the 2018 Cone/Porter Novelli Purpose Study found nearly eight-in-10 (79 percent) Americans say they are more loyal to purpose-driven brands rather than traditional brands and nearly three-quarters (73 percent) are more willing to defend them.

The results of the study make sense, as emotional loyalty is no longer a new term in the marketing realm. Younger generations, specifically millennials, are the most emotionally engaged generation in history.

People are hungry for a purpose in their own lives and are looking for brands they can get behind while on that journey. In fact, 67 percent of Americans feel purpose-driven companies care more about them and their families than traditional brands. With that, 78 percent of consumers believe it is no longer acceptable for companies to just make money, they expect companies to positively impact society as well.

The study had six key takeaways:

- Americans are more likely to "endorse" and share content from purpose-driven brands,
- Purpose helps companies grow the bottom-line and expand their consumer base,
- Purpose trumps cost and quality in majority of consumer behaviors,
- Purpose impacts more than just purchase in the eyes of Americans,
- Americans believe companies should address hot-button issues through purpose,
- Americans believe all industries must lead with purpose.

From an industry standpoint, it appears there’s not a single industry that is immune to this trend in consumer preferences towards purpose.

When asked which industries it was most important to have and communicate a sense of purpose, Health and Wellness topped the list at 87 percent, Food and Beverage (81 percent), Technology (81 percent), Manufacturing (79 percent), Automotive (78 percent), Retail (77 percent), Financial Services (77 percent), and Footwear and Apparel and Professional Services (76 percent).

What does all of this mean and why is it important for marketers and loyalty strategists?

Purpose builds deeper bonds with existing consumers, expands the consumer base and enlists those brand advocates to share the brand message. Brands with the support of consumers that fight for them behind the scenes is one of the most powerful connections that can be made between brand and consumer.

For brands struggling with their own loyalty strategy or are experiencing widespread discontinuance from their customer base, finding a deeper purpose could be the key to making a lasting impact on the market and returning to prominence.
 

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