Current trends, opinions, news articles, and musings about branding.

The Future of Profits is Brand Purpose

Written by Alex Valderrama, Founder and Principal of Cranium Agency

This article was originally written for the World CSR Congress 6th edition.

There is an uncanny ability for most consumers to quickly read into a company brand and decide whether the product or service is right for them. Most brands have a predefined purpose and most brands do a terrible job communicating that purpose to their prospective customers.

Communicating the purpose of a brand is the pinnacle of how one might decide if the product or service offering is right for them or not. The brand’s purpose is directly connected to the consumer’s needs. A simple question every brand should ask and answer is “What is the purpose of my brand?”. The answer usually is derived from delving into many other aspects of the brand, it is most often the conclusion of a brand research initiative. It should be straightforward, unique and specific. An example might be “To provide the world with a unique refreshing drink – Coca-Cola”, “To design and produce a vehicle that is very safe to drive – Volvo”, “To change the way people interact with technology for a better life experience – Apple.” These conclusions may seem obvious, although very often it is a very difficult conclusion for many businesses to answer.

Understanding the purpose of your brand will make a major impact on your overall profit. Every day, we are given many opportunities to engage with various brands and we make decisions as to whether we want to use these brands. Using a strong brand strategy and clearly communicating your brands’ purpose, your customers will connect and engage with your brand. Your customers will better understand how your brand can help them, therefore building trust and loyalty. The most successful brands understand the importance of clearly defining their brands’ purpose and communicating it in a unique and simple way.  Your prospective customers will most likely choose a brand over the others based on how clear the brand communicates its purpose, therefore provide a unique brand experience and the opportunity helps them achieve their needs.

In conclusion, never underestimate the power of a clear written out brand purpose and how it affects all other brand communication elements such as positioning, differentiation, and most importantly your bottom line.


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