Today is March 8th, International Women's Day. Many companies and brands have marked this day on their calendars because they use it for purpose marketing. We want to clarify: what exactly is purpose marketing, and what does it offer companies and brands? Also, what challenges can arise? We at Mawave have also put together some fails and best-practice examples of purpose campaigns for you.
What is Purpose Marketing?
The term "purpose"</1> refers to a higher objective. It is not about the goal of generating as much revenue and profit as possible, but rather the higher calling—the values that a company stands for. Brands take a clear stance and position themselves on issues such as gender equality, society, sustainability, human rights, or diversity.
The Relevance of Purpose Marketing
Purpose marketing has increasingly become a communication trend in recent years. There is a growing expectation for companies to act like people online—and people have their own opinions on all these topics.
Furthermore, purpose marketing captures the zeitgeist. Whether it's gender issues, science, energy, or the economy—much of what was long considered set in stone is now being rethought. The primary drivers for this are two events from recent years: the Fridays for Future movement and the COVID-19 pandemic. As a result, many people are questioning the meaning of their lives more than ever while consuming more consciously. This means they are focusing on their own social, ecological, and economic responsibility and, as a result, are making more conscious choices about which companies they support.
Opportunities of Purpose Marketing
The shift in society and consumer mindset offers several economic advantages for companies, which we would like to explain in more detail.
The right use of purpose marketing pays off for (e-commerce) companies in the long run
1. Competitive Advantage
According to a McKinsey survey, three-quarters of German consumers pay attention to the sustainability of products when shopping.
Consequently, they prefer plastic-free packaging, support fair working conditions and animal welfare, and want to leave the lowest possible carbon footprint with their consumption. Furthermore, the younger the consumers, the more they value purpose and sustainability. For instance, over 80% of Gen Z state in the "OK Zoomer" study that they would be more likely to buy products from companies that take a stand on socio-political issues.
For companies and brands, this means that a strong purpose sets you apart from the competition, strengthens your image and branding, and definitely provides a competitive advantage.
US author and business consultant Simon Sinek shares this view: In his TEDx Talk "Start with Why," he recommends that companies identify and communicate their "why"—their purpose—instead of focusing solely on the "what" (products) or "how" (manufacturing methods). According to Sinek, this is the only way for companies to differentiate themselves from competitors and win over customers. For e-commerce brands in particular, this could be the deciding factor that distinguishes them from all the similar products or services available online.
2. Branding & Customer Loyalty
Purpose marketing also influences customer loyalty to a company. When you stand up for a cause together and pursue a higher purpose, a sense of belonging develops between customers and the brand. It acts like a positive emotional experience that strengthens loyalty and builds trust. In times when customer acquisition costs are rising and retention is more important than ever, purpose marketing is of extreme importance.
3. Higher AOV and CLV
The shift in society has led to another trend: most consumers are no longer necessarily looking for the lowest price. Many are willing to pay more for products and return to shop in the future—if the company's stance aligns with their own. Thus, purpose marketing also potentially increases the Average Order Value (AOV) and the Customer Lifetime Value (CLV).
Challenges of Purpose Marketing
As described above, taking a stand can certainly pay off for companies. However, this only applies if the message comes across as authentic and communication aligns with actions.
The Risk: Woke Washing
A term that plays a major role in this context is woke washing. Being "woke" essentially means having an awareness of socio-political issues and social injustice. Woke washing, therefore, refers to a company that only pretends on the surface to be particularly sustainable, socially engaged, or gender-inclusive. In its actual operations or day-to-day business, however, it implements none of these things. In extreme cases, it even does the exact opposite of what it claims. In short: woke washing describes the discrepancy between words and actions.
Tips for Communication
To ensure a company is not confronted with such accusations, it is important to define the purpose correctly. "Correctly" means that it credibly fits the company and its DNA and is also actively lived out. That is why it makes little sense to simply use target group analysis to pick the purpose that happens to be popular at the moment.
Credibility
The example of GotBag shows how important credibility is in purpose communication. Until the summer of 2022, the Mainz-based company advertised that it produced backpacks from 100 percent recycled ocean plastic. With this, the start-up wanted to position itself as an eco-label and communicate the purpose of acting particularly sustainably. However, this communication resulted in a shitstorm. Because Zeit Online and the research network Flip discovered through their investigations that the company's products were sometimes only 59 percent ocean plastic and that Gotbag had portrayed itself as more sustainable than reality reflected. The brand blamed its behavior on communication errors: it was not the finished products, but only the fabric that consisted of 100 percent ocean plastic. Regardless of whether it was intentional or unconscious woke washing, the image is damaged.
Social media, in particular, exposes woke washing quickly. This marketing trick not only harms customer credibility and loyalty, but also has an enormous impact on employee satisfaction within a company. An Austrian study reached this conclusion. According to surveys by "Purpose ready," satisfaction among employees rises from a grade of 2.2 to 1.7 when their employer has defined a purpose and actively lives and implements it. In contrast, companies without a purpose have a hard time when it comes to being attractive employers and building a bond with their staff.
Sensitivity
In addition to the right purpose, it also takes a great deal of tact and a good feel for the current social climate to be successful with purpose marketing. Otherwise, users can quickly perceive a message negatively.
Pepsi had to learn this the hard way: during the “Black Lives Matter” debate, the corporation launched a commercial featuring Kendall Jenner. With a can of Pepsi in her hand, the model acted as a kind of peacemaker between officers and protesters. The spot received so much criticism on social media that Pepsi removed it from the web within 24 hours and issued a public apology. Many users criticized the fact that the campaign made a privileged, wealthy white woman a peacemaker – an image that does not correspond to the core idea of the Black Lives Matter movement and trivialized the issue. Furthermore, the spot gave the impression that a can of Pepsi was the cure-all for eradicating racism, which is, of course, absurd.
For companies, such a shitstorm is, of course, a no-go. However, it should always be taken into account that not all social media users share the same opinion. Because a polarizing opinion automatically makes many users feel called upon to share their own views on the topic and either react with a positive response or vent their frustration in the comments. Therefore, good PR crisis management is essential in any case to remain reactive and to take the wishes and criticism of the target group seriously.
However: if companies are constantly changing their opinions, it appears less than authentic. Only when companies stick to their values and also handle negative criticism well will customers trust them and remain loyal.
Credibility and sensitivity are the basic prerequisites for successful purpose communication
Ways to Implement Purpose Marketing
Basically, as with all themed days in marketing, it makes sense to adapt landing pages and newsletters, offer special discount codes, etc. But we want to focus more on what you can do differently with purpose marketing.
Long-term Initiatives
Many companies rely on long-term initiatives to communicate their purpose. The Swiss fashion label Nikin, for example, advertises with the slogan “Tree by tree,” because for every product sold, the brand donates an amount to reforestation projects around the world, which are regularly organized by OneTreePlanted. This means the entire corporate philosophy is inherently built on social and societal impact.
Tip: Supporting a good cause is a great way to engage in purpose marketing. The only important thing is to find meaningful partnerships and create added value for the target group through the cooperation.
Purpose marketing for special themed days
There are also countless brands that use special days like International Women's Day or Pride Day for themed campaigns: Nivea Germany, for example, launched their classic cream in new packaging to coincide with Pride Month. Instead of the usual blue tin, the packaging featured a rainbow design. One advantage of special products in purpose marketing is that they can increase customer engagement and loyalty. Customers who identify with a company's mission are happy to buy products that visibly support that purpose. In addition, it provides differentiation from competitors who focus solely on sales and do not represent a purpose with their products.
Many companies also collaborate with inspiring figures or specific influencers to raise awareness for a particular issue during events like International Women's Day. It is important, however, that these public figures are genuinely committed to the cause independently of the campaign so that the communication remains credible. A personal and emotional alternative to giving a campaign a face is to feature individuals or employees within your own company who have something to say on the topic.
Depending on the company's focus, long-term purpose strategies or themed campaigns can be worthwhile
Conclusion
Of course, all companies aim to operate efficiently and maximize profits. Purpose marketing, however, helps to navigate rising expectations and shifting societal values, thereby strengthening image and branding and, in turn, increasing long-term revenue. Because if you succeed in using purpose marketing to build a loyal community that shares and stands up for the same values, you can hold your own against the competition.
