Brand purpose post-COVID 19: how one-off gestures can become long term intentions
A crisis can bring out the best or worst in people. In Mandarin the word for ‘crisis’ is composed of two Chinese characters signifying “danger” and “opportunity” respectively. When we are forced to look a crisis in the face, our first response is denial, panic and anxiety. Then we learn how best to deal with the situation, both for ourselves and for those we love and our communities.
Businesses are no different. The ongoing COVID-19 crisis has forced many brands to take a long hard look at a) what do they need to do to survive? and b) what can they do to help and keep their employees as well as their consumers through this?
For many brands this has meant being agile and rethinking their business models, products or services and operational procedures. For some brands it’s meant taking time to remind themselves of why they are here. What was the societal need or challenge that triggered the need for the product or service being provided? In essence, what is the brand’s purpose? Revisiting and perhaps re-invigorating your purpose is a worthy thing to do, it has the ability to accelerate your rebound growth as well as lay the foundations which are in line with who and what you stand for as a brand.
Brand purpose is important because it shows your customers that you’re not just your products, services, or advertising campaigns.
However, purpose is one of the most misunderstood and misused words in business today. But there is no need to over-complicate its meaning. A brand’s purpose is simply the reason why it exists and what people would miss if it didn’t. So every single brand has a ‘purpose’ otherwise it wouldn’t be a brand! But not all brands are PURPOSE-DRIVEN and that’s the differentiator.
The way brands react during the COVID-19 crisis is a good indication of those who are truly driven by purpose. Some are simply doing what they’ve always done but perhaps ramping up activity. Some are pivoting their business to best respond to an immediate need and some are digging deep into their corporate pockets to help communities through monetary means. All of these reactions are great and much-needed. But it does make one think about how much of this is a short-term gesture as opposed to longer term intention. How many of the brands taking action now will consider how they can have a positive impact on the world post COVID-19?
Doing well by doing good isn’t just the right thing to do, there is a strong commercial imperative for brands to become more purpose-driven. Harvard Business School’s George Serafeim, says that purpose-driven companies have been shown to outperform their competitors over the long term by enjoying higher employee productivity and customer loyalty and satisfaction. It can mean higher sales (creating retail preference; opening up new markets); strengthened license to operate (by demonstrating your commitment to making a difference to civil society); more effective marketing (providing fresh briefs that inspire creatives and meaningful content that encourages sharing) and greater employee engagement and satisfaction which has a positive impact on productivity.
We’re seeing evidence of this commercial benefit from companies at the forefront of purpose-driven action. Purpose is also driving purchasing behaviour. Younger consumers have always been more savvy in their purchasing decisions but the pandemic is seeing older consumers also rethinking which brands are worthy of their dollars.
How can brands maintain this purpose-driven mindset post-COVID 19?
As countries start to come out of lockdown, there is no time to lose for brands to start preparing for what comes next. The Five Stages of Crisis Recovery model presents a framework that can lead a company from an adrenaline-fueled crisis response mindset to a more strategic, methodical, purpose-driven approach.
Five stages of crisis recovery are:
- Recognize the acute crisis has ended, time for a shift to recovery mode.
- Recalibrate activities, assess the damage to the company, brand.
- Repair reputation, articulate an outreach strategy for key stakeholders.
- Redirect negative dialogue, pre-empt with positive programming.
- Reinvigorate brand values and the stated social contract.
Revisiting and revitalising your brand purpose is part of this recalibration. But where to begin?
Go back to where it all began
What is the societal need the brand is looking to solve?
What is happening in the world today where you could have a positive impact?
What are the tensions between what your consumers want and the social and cultural expectations in which they live? There may a few potential areas you could focus on so worth exploring a few and perhaps testing them with internal and external stakeholders
Authenticity is key — stay true to who you are
Does your product or service have a legitimate role to play in addressing that tension?
Take others along with you
Getting your employees and other stakeholders involved from the outset is key as they should be your strongest supporters. Your purpose should also align to your brand’s values.
‘Do’ don’t just ‘say’
How do you bring your purpose to life for your customers and employees in a meaningful and authentic way? How do you create real and lasting change?
Think long term
This shouldn’t be a one-off campaign or a single internal employee newsletter. Being a truly purpose-driven brand means putting it at the centre of every decision you make. It requires real investment and commitment.
With this, brands have the opportunity to leave a legacy, by balancing making a profit with doing social good. Purpose needs to be at the core of your business, and will take years to build, but you need to start now.
Radhe Vaswani, Chief Operating Officer, Global Clients, MullenLowe Profero & Suzy Goulding, Director, MullenLowe salt
