As the way of doing business evolves, it’s become clear that consumer expectations have expanded when deciding which companies to support. In addition to the product or service they are buying, consumers want an experience and a specific outcome, and they especially want to buy from companies that support a higher purpose than their products. Brands have evolved from simply representing a product or service into having deeper, more complex personas.
Enter purpose-driven companies. Purpose-driven companies have a strategic advantage that, when communicated effectively, is beneficial for everyone the company touches. Here’s why:
- Employees will be more dedicated to your company.
In the age of Glassdoor and viral stories of poor working conditions, we know that purpose is paramount when it comes to recruiting and maintaining a happy and healthy workforce. Employees are more likely to be attracted to companies that have a clear purpose and, once onboard, are more engaged in their work. This pays dividends when it comes to producing the products and services your company offers. Using your company’s purpose to attract the best and brightest will increase the caliber of talent at your firm as well as foster innovation and creativity to further improve the solutions your company provides.
- Purpose-driven companies see better results.
There have been countless studies demonstrating the link between purpose-driven companies and stronger business performance. Why? One could argue that consumers care about and are more likely to be loyal to a company that treats its employees, the environment, and its communities well. They connect with brands and want to be associated with those that are seen as having characteristics they admire. When your company’s mission is relevant and communicated clearly to its audience, you’ll see the return on your balance sheet.
- It’s the right way to do business.
At the end of the day, purpose-driven companies exist to solve problems that their customers face. This should be the North Star that guides you in all your decisions. It’s easy to lose sight of this, as businesses must often answer to other stakeholders, boards of directors, and profit and loss statements that determine, in part, the success of a company. But by being mindful of the impact your company has on everyone it touches, you can truly maximize how it affects people’s lives. The result will be prosperity for years to come.
To build a company that ensures more successful business results, does a better job of attracting and retaining talent, and operates on a clear, purpose-driven compass, keep your customers and the problems you hope to solve for them top of mind in all business decisions. Although the concept of transitioning your business into one that’s purpose-driven can seem abstract, you will see the returns in every aspect of your company.