The topic of purpose-driven branding is on the rise. It’s interesting to notice how many brands are beginning to take stands surrounding topics or causes, effectively creating tactics like “cause marketing” to unfurl and embed themselves in the brand’s strategic vision. Over the past few decades, very few companies would venture into the territory of political or cultural topics for fear of isolating parts of their consumer base. As the world changes and new generations enter the spending spectrum, they also bring with them their own buying behaviors.
In a survey of 1,300 consumers from the United States, Zeno Group found that consumers were 63% more likely to purchase if a brand played a positive role in their lives. We see an example of this with Nike and its bold move in the Labor Day Weekend campaign featuring Colin Kaepernick. CBS reports Nike stock has soared 5% since its launch on Labor Day Weekend, drawing record social media likes and boosting sales, despite calls to boycott the brand.
A survey released by Deloitte Global found that six in ten millennials said they chose to work for their current employer partly because the company has a “sense of purpose,” differing from previous generations. The findings were compiled based on interviews with more than 10,000 millennials across 36 countries, ranging from the United States to Ireland.
The shift in marketing tactics is going to become clearer in the coming years as these millennials join the workforce and become a major driving force as consumers. They are much more comfortable with technology, and according to Pew Research, their generation is the most likely to use public libraries.
But does library usage really help a brand understand millennials’ spending habits? Maybe not, but that information, combined with other key data can help companies formulate millennials’ “spend personality” which can lead to more effective and holistic marketing messaging and strategies. The Deloitte research I mentioned earlier points to a shift in how millennials are eager to have businesses make a positive impact on society. These are the key ideas that will attract and retain spending with brands but also attract and retain this new workforce.
Recently, Patagonia discovered “unexpected” profits of $10M that the brand plans to donate to grassroots organizations that are fighting the causes of climate change.
We’ve seen other brands like Dove also embark on campaigns that are rooted in causes like their incredible ad campaign for real beauty. We also see overtures of this with Volvo Cars and their “Ocean Race” which allowed Volvo to collect data on the concentration of harmful microplastics in the ocean.
Not all brands get it right, which is why authenticity is critical to a brand’s purposeful positioning. Pepsi’s attempt at ‘a global message of unity, peace, and understanding’ didn’t go so well when they featured Kendell Jenner in an ad giving a smiling officer a soda at a protest. The ad was pulled which is why ensuring the brand’s position comes from a place of authenticity will be a critical foundation to becoming more purposeful in consumers’ eyes.
No matter the brand, it’s clear that there are as many effective ways to create a more purposeful brand as there are ineffective. As millennials gain more spending power, we will find that brands will have to align to more of what this generation (along with Gen Z) demands of businesses. As consumer spending shifts between generations, marketers will have to become more aware of the changing needs and align to those or begin to lose share against competitors who will do this sooner and better.