Anatomy of a Successful Brand: The Power of Purpose
Welcome to the first post in this series, "Anatomy of a Successful Brand." Cutting through the noise in today’s landscape is hard. Truly understanding and articulating a brand's purpose isn't some lofty abstract exercise—it's a powerful tool and a game-changer.
We live in an era where trust is a rare commodity, and authenticity speaks volumes (see here for my thoughts on brand trust). A brand's purpose isn't just a tagline; it's the secret sauce. Join me as we break down what makes brands tick, starting with the North Star that guides them: brand purpose. I’ll try to keep it real, dive into real-world examples, and explore why this isn't just jargon but a strategic necessity.
Defining Brand Purpose
At the heart of every influential brand lies a clear and compelling purpose. It is the guiding force, directing the company's decisions and actions. Much like the soul of an organization, a brand purpose is essential for creating an identity that resonates with both customers and employees.
Purpose matters now… more than ever
We are living in a world drowning in information overload, with the proliferation of digital channels intensifying competition, and to make it even harder, attention spans have never been shorter. A strong brand purpose can guide consumers through the maze of choices. Now, more than ever, understanding brand purpose is not just a choice; it's a necessity.
Think about the explosion in the number of technology brands we’ve seen in the last 20 years. In the early 2000s Silicon Valley was already a tech hub, but the emergence of ‘unicorn’ startups, booming app ecosystem, and flow of VC funding has caused a significant increase in the number tech brands today. According to Microsoft, there are 137,000 startups launching every day on average.
Amidst the noise of competing messages and the evolving expectations of today's discerning consumers, grasping the essence of a brand's mission becomes the key to staying relevant.
Exemplars of Strong Brand Purpose:
Patagonia: A Commitment to Environmental Stewardship
Patagonia's brand purpose transcends selling outdoor gear; it's a commitment to environmental activism. Yvon Chouinard, founder of Patagonia, once said, "We're in business to save our home planet." This purpose echoes throughout their marketing campaigns, product innovations (like the recycled fleece), and customer engagement initiatives.
Patagonia has been involved in various campaigns supporting public lands, climate action, and conservation efforts. For example in 2017 Patagonia sued the U.S. government over the reduction of protected lands and they did not do so quietly. Patagonia replaced the usual product promotions and images on its website’s homepage with the campaign message: “The President Stole Your Land”. They also created educational content including articles, blog posts, and videos to provide context and information about the importance of protecting public lands (example: “Why Should the Public Care about Public Lands” blog post on Patagonia website). This content helped customers understand why this issue was important and encouraged them to advocate for the cause as well.
The brand’s strong purpose also is a helpful tool for making seemingly difficult decisions rather quickly. When making the decision to join a coalition of Native American and grassroots groups challenging the legality of the government’s actions, it didn’t take days or weeks of deliberation. “It took exactly one email to the board,” says Patagonia General Counsel Hilary Dessouky. “And the response was instant: ‘Yes. Absolutely. Go for it.’”
Many of Patagonia’s customers appreciate the brand’s activism and advocacy initiatives, and are loyal to the brand because of this. Accenture's 2018 Global Consumer Pulse Research reported that 63% of consumers prefer to purchase products and services from companies that stand for a purpose that reflects their values and beliefs, and they are willing to pay a premium for such products.
Google: Organizing the World's Information
For Google, the mission is clear: to organize the world's information and make it universally accessible. Sundar Pichai, CEO of Google's parent company Alphabet, emphasizes the company's commitment to "building products for everyone." Google's purpose drives not only their technological advancements but also shapes their inclusive approach to global information accessibility.
This not only shapes how Google shows up to the external world but how they build their culture internally. For example, Google has contracted Performance Paradigm to develop DEI programs Examined Human and Digital Human, which involves 12 weeks of DEI training for leadership of the company. Inclusivity is not a ‘check-the-box’ activity but instead a hefty investment of time and resources, reflecting the importance of this purpose in the company’s overall commitment. Deloitte's "2019 Global Human Capital Trends" Report found that organizations with a strong sense of purpose are more likely to invest in employee development and well-being, leading to a positive impact on employee happiness and engagement.
Learning from Failures:
Yahoo's Brand Purpose Challenge:
While success stories inspire, failures teach valuable lessons. A case in point is Yahoo, a company that faced challenges aligning with a strong brand purpose. The lack of a cohesive and well-communicated brand purpose made it difficult for customers, advertisers, and investors to understand what Yahoo stood for and what differentiated it in the market.
In the 1990s, under the leadership of Timothy Koogle, Yahoo positioned itself as a web portal and directory, helping users navigate the expanding internet. However, in the 2000s, attempts to secure a significant place in the search engine market faced formidable competition from Google. This struggle to innovate and gain market share set the stage for Yahoo's ongoing challenges.
Scott Thompson's brief tenure in 2012 added to Yahoo's woes. A controversy over his misrepresented academic credentials led to his resignation, creating additional hurdles for the company's leadership and tarnishing its image. Following this, Marissa Mayer took the helm, aiming to reshape Yahoo as a tech and innovation hub. The acquisition of startups in mobile, analytics, and advertising technology marked a strategic shift, but increased competition in the digital advertising space posed new obstacles.
The lack of a consistent and clear brand purpose, coupled with leadership changes and difficulties adapting to industry trends, significantly impacted Yahoo's ability to maintain a strong market position. These challenges ultimately resulted in the sale of Yahoo's core internet business to Verizon in 2017. The lessons from Yahoo's journey underscore the importance of a well-defined brand purpose, strategic adaptability, and transparent leadership in navigating the ever-evolving landscape of the tech industry.
Brand Purpose in B2B
Salesforce as a Model:
Salesforce, a leading B2B tech company, serves as an exemplary model with a clear and impactful brand purpose: "We believe businesses can be powerful platforms for change." This purpose not only encapsulates Salesforce's commitment to its clients but also shapes its overall strategies and customer relationships, setting it apart in the B2B landscape.
One key aspect of Salesforce's brand purpose is its dedication to helping businesses drive positive change. This is evident in its innovative cloud-based solutions which empowers organizations to streamline processes, enhance customer experiences, and make data-driven decisions. By providing tools that enable businesses to operate more efficiently and effectively, Salesforce aligns its product offerings with its broader purpose.
Salesforce's commitment to corporate social responsibility is another manifestation of its brand purpose. The company actively promotes initiatives like the 1-1-1 model, where it donates 1% of its product, 1% of its equity, and 1% of its employees' time to charitable causes. This reflects Salesforce's belief in using business as a force for good, extending its impact beyond commercial success to contribute positively to society.
In customer relationships, Salesforce's brand purpose plays a crucial role. The company emphasizes partnerships and collaboration, working closely with clients to understand their unique challenges and providing tailored solutions. By aligning its purpose with the success and growth of its B2B clients, Salesforce fosters long-term relationships built on trust and shared values.
Salesforce's brand purpose has contributed to its recognition as not just a technology provider but a partner in driving positive change for businesses and the communities they serve. This clarity in purpose has undoubtedly influenced Salesforce's position as a standout model in the B2B sector, showcasing the potential impact of a well-defined brand purpose on organizational strategies and success.
Putting this into Practice: Empowering Every Role in the Brand Journey
Brand purpose might sound like a boardroom buzzword. Something reserved for the upper echelons of management. But the truth is, each one of us plays a pivotal role in shaping and living out the brand's purpose. It's not just a leadership prerogative; it's a shared responsibility that extends to every individual within the organization. As you've delved into the stories of successful brands above, it's clear that their purpose is not a distant concept—it's a guiding force in their day-to-day operations.
Here are three questions to ask yourself, ensuring that your daily efforts contribute to the living, breathing entity that is your company's brand.
Does My Work Reflect Our Core Values?
Consider whether your tasks and decisions align with the fundamental values your brand stands for. How can you embody the principles that your brand communicates to the world?
How Does My Contribution Advance Our Brand's Mission?
Reflect on the direct impact of your work on the broader goals and mission of your company. Understanding the broader context helps you see the purpose behind your daily tasks.
Am I Creating a Consistent Brand Experience?
Ensure that your interactions, whether internal or external, consistently reflect the brand's identity. Consistency builds trust, and every action contributes to shaping the perception of your brand.
Whether you're in the C-suite or the mailroom, your role matters in crafting a brand that stands the test of time.
Join me in the upcoming posts as we unravel more secrets behind the success of notable brands!
The views in this article are purely my own. In no way is this article related to, informed by or endorsed by my employer.