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Why Purpose Matters: A Gen Z’s Take on Purpose-Driven Brands

November 28, 2024

As a Gen Z, I find myself routinely encountering discussions on climate change and social justice movements such as #MeToo through various channels, including social media, news platforms, and dialogues with friends.

A particularly impactful moment for me happened when I came across a social media post from a school senior sharing her personal experience with sexual harassment under #MeToo, alongside her learnings and advice for others in similar situations. This brought home the reality that these issues are not as distant as I imagined but are real events impacting people within my own social circles. Our current actions, or lack thereof, will significantly shape our future, with global warming serving as one stark example of how neglect could hasten our societal and environmental decline.

These experiences and realisations have not only impacted my personal perspective but also influence the buying decisions of many others in my generation. These shifts prompt us to reconsider what we value in brands. How do our personal values impact the buying decisions we make? That is also a key question that today’s brands are asking: What is the new generation of consumers looking for, and what will make them choose to buy from a brand?

What Gen Zs Need

In the context of Maslow’s Hierarchy of Needs, many of us in the new generation are fortunate to have our basic needs met, providing a stable foundation for exploring higher-level needs. With our fundamental needs for food, shelter, and safety adequately addressed, we find ourselves navigating a digital age where identity can often feel fleeting, with social media as our reality and where there is a constant quest for instant gratification. To bridge this gap, we turn to other sources to fulfil our needs for belonging, self-esteem, and self-actualisation.

The Purchase Decision Process of a Gen Z

If products are cheap and serve immediate needs, transactional business models may suffice. However, to cultivate loyalty and advocacy among Gen Z consumers, this transactional approach falls short. In today’s market, brands are perceived not just as providers of products or services but are expected to embody meaningful causes or missions that resonate with our values. Studies show that around 44 percent of global consumers are “purpose-driven,” highlighting the necessity for brands to communicate their sense of purpose and build connections with consumers.

I find myself gravitating towards products that align with my personal preferences and values. Functional products that offer practical benefits particularly appeal to me. For instance, in choosing footwear, brands known for comfort catch my attention over those emphasising style and aesthetics. Brands need a defined purpose that aligns with consumer values, making the purchasing experience feel personally resonant.

For brands to effectively connect with their audience, they must incorporate societal values that consumers hold dear into their business operations. Some brands excel at this, while others clearly need to reassess their approach.

How Brands Embody Their Purpose

Authentic integration of purpose is essential for its legitimacy and impact. Companies like Unilever, Cisco Systems, and Patagonia demonstrate how purpose-driven initiatives, such as digital well-being and sustainability, can be integrated into business practices. These successful brands align their purpose-driven efforts with their business nature, values, and operations, not just to improve their image but to make a meaningful impact in their communities.

Conversely, I have observed initiatives that seem solely aimed at portraying a positive company image, which often feel superficial and misaligned. Such endeavours come across as insincere, casting doubt on the company’s intentions and sometimes leading to public backlash.

Purpose For Non-profit Brands

For non-profit organisations, clearly articulating their purpose is crucial to help people understand the brand’s mission and engage with its services. An example of this is our work with Youthline, as part of FINN’s purpose project, addressing their need to raise awareness of mental health struggles among youths and extending the right support amidst growing demand.

We helped Youthline to tell their brand story. Through the power of the media, we were able to shine the spotlight on different aspects of Youthline’s impact work, from a volunteer’s journey into social work, to building supportive communities for young people, offering professional mental health advice, and providing a glimpse into the operation of their live helpline. These efforts not only increased Youthline’s visibility as a key mental health support system but also led to an increase in demand for their service, evidenced by a surge in calls to the live helpline.

Building Your Purpose-Driven Brand

Alignment is key for building a purpose-driven brand. I believe categorising purpose into four main types can help brands to align better with their identity and mission:

Social Purpose: Aiming to positively impact society or the environment, focusing on initiatives that contribute beyond the business’s direct interests.
Emotional Purpose: Connecting with consumers emotionally, inspiring confidence, happiness, or satisfaction, thereby creating a deeper bond.
Cultural Purpose: Creating a community around shared beliefs or values, fostering a culture that resonates with both employees and consumers.
Functional Purpose: Delivering practical benefits to consumers, focusing on essential and relevant needs.

In addition, brands should also ensure that their purpose is:

Authentic: Genuinely reflecting the brand’s core beliefs and values.
Relevant: Aligning with the brand’s products or services and resonating with customer needs.
Distinct: Providing a meaningful differentiation in the market.
Sustainable: Guiding the brand’s strategy and operations over the long term.
Actionable: Demonstrating the brand’s commitment through tangible actions and initiatives.

By thoughtfully defining and integrating these aspects, consumers can get a better understanding of what the brand stands for and connect with the brand.

Purpose as a Pillar of Growth

In today’s world, brands must evolve their operational approaches to resonate with contemporary consumers. Those that authentically integrate purpose into their business are well positioned to build strong, lasting relationships with their audience, securing a competitive edge in the process.

At FINN, our belief in being a force for good guides our actions and decisions. This philosophy shapes our aim to be more than just a world-class agency; we strive to operate as a brand with a heart and conscience, placing our focus on valuing our people, and ethical practices. Our commitment to being a force for change especially in the area of social impact has not gone unnoticed, and we were recognised as one of 2024 Fast Company Most Innovative Companies.

Working in a purpose-driven company has clear benefits: it makes me feel like my work has a meaningful impact, increasing my job satisfaction. Being part of a purpose-led organisation also serves as a constant reminder, nudging me towards engaging in work that is both positive and impactful. It seems there’s a symbiotic benefit here; nothing is lost, yet much is gained on multiple levels: for me, the company, our clientele, society, and the wider world.

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Consumer