Genuinely ‘purpose-led’ brands stand to grow at twice the rate of those without any higher-order societal aim, according to Kantar Consulting’s new Purpose 2020 research released today.
Kantar Consulting surveyed more than 20,000 consumers and carried out 100 deep dive interviews with leading brands. Major findings include:
• Brands with a high sense of purpose have seen their brand valuation increase by 175% over past 12 years vs a median growth rate of 86% and a growth rate of 70% for brands with a low sense of purpose.
• 76% of marketing leaders believe their organisation has a defined purpose, but only one in ten actually have a corporate purpose statement backed by a meaningful activation plan.
• While two-thirds of marketing leaders believe that purpose delivers long-term growth only one third of them believe purpose is regarded as a ‘company-wide movement’ within their company.
• Looking to the future, almost two-thirds of millennials and centennials, who are fast becoming the economic engine, express a preference for ‘brands that have a point of view and stand for something’.
Commenting on the new report Robert Jan d’Hond, global lead, brand practice, observed: “Between revenue and social footprint many brands now have more power than elected leaders, and there is a clear expectation from consumers that this power is used for positive change.” He continued: Brands need to aim high to find a meaning beyond the category while navigating the terrain at ground level without stumbling. That means identifying a long-term societal tension that is relevant but unique while staying true to the brand and company.”
The Purpose 2020 report represents the first findings from Kantar Consulting’s new Business Purpose practice which came in to being with the launch of Kantar Consulting in January this year. The practice outlines three key steps to inspiring purpose-led growth: Articulation, Infusion and Amplification. The study finds that brands are over-investing in purpose “articulation”, but under-investing in the “infusion” and “amplification” phases which embed the purpose within the organisation and customer base. The current 80-20 investment model needs to be reversed.
The full Purpose 2020 study and on-demand webinar, which includes the key criteria and characteristics necessary to move from “purpose as an isolated tactic” to “purpose as a business-led movement” is available here.