Purpose-driven marketing is more than a strategy

What is Purpose-Driven Marketing and why it resonates with today’s consumers

Purpose-driven marketing is now recognized as a vital strategy for brands, especially for those aiming to connect with consumers on a deeper level. You can see many businesses in the healthcare, insurance, and geotech sectors becoming very 'purpose-driven.' This approach moves beyond mere profit generation to foster genuine relationships with customers.

We believe purpose-driven marketing has become essential for brands today, especially those targeting Gen Z consumers. Younger generations are increasingly discerning, expecting brands to champion meaningful causes. According to research from Brandwatch, 80% of consumers feel more connected to brands whose values align with their own. So when brands align with ethical practices, they don’t just gain repeat buyers—they cultivate a community of passionate supporters."

date published

Aug 21, 2024

date published

Aug 21, 2024

date published

Aug 21, 2024

date published

Aug 21, 2024

reading time

5 min read

reading time

5 min read

reading time

5 min read

reading time

5 min read

Author

Author

Author

Author

So now let's talk about how to incorporate purpose-driven marketing into your campaigns

A great example is Stripe, the payment processing fintech that we use for our services. Stripe is encouraging businesses to contribute a portion of their earnings to combat carbon emissions through every transaction made on Stripe. Theyve made it incredibly simple for companies to donate, offering eye-catching stats that make it rewarding to be part of the solution. Plus, you receive beautifully crafted reports that are perfect for sharing with customers and followers. Stripe has seamlessly integrated a feel-good, eco-friendly approach into their product.

As a Stripe customer, were proud to join their initiative of donating 1% of our revenue to projects that help reduce carbon emissions.You can take a look at our sustainability report generated by Stripe to see it in action. Explore more about our green initiatives report here.

So now let's talk about how to incorporate purpose-driven marketing into your campaigns

A great example is Stripe, the payment processing fintech that we use for our services. Stripe is encouraging businesses to contribute a portion of their earnings to combat carbon emissions through every transaction made on Stripe. Theyve made it incredibly simple for companies to donate, offering eye-catching stats that make it rewarding to be part of the solution. Plus, you receive beautifully crafted reports that are perfect for sharing with customers and followers. Stripe has seamlessly integrated a feel-good, eco-friendly approach into their product.

As a Stripe customer, were proud to join their initiative of donating 1% of our revenue to projects that help reduce carbon emissions.You can take a look at our sustainability report generated by Stripe to see it in action. Explore more about our green initiatives report here.

  1. Identifying your brand's purpose with precision

Understanding your audience is the first step in crafting a purpose-driven approach. Utilize tools like GA4, social media analytics, and big data solutions such as Criteo to pinpoint what drives engagement and loyalty among your customers.

Pangaia recognizes the growing consumer trend toward purpose-driven brands. They utilize market research and consumer insights to understand the values that resonate with their audience. For instance, research studies indicate that a significant percentage of consumers are willing to pay more for products from brands that demonstrate a commitment to social and environmental responsibility. Pangaia effectively communicates its sustainability initiatives, aligning its offerings with the values of conscious consumers.

Employee growth at Pangaia also serves as social proof, showing that more and more people want to work for a company that’s making a positive impact on the environment.

  1. Integrate Purpose Into Your Business: Understand Your Audience, the Future Generation

Purpose-driven marketing should be woven into the fabric of your operations. Whether it’s sustainable product development or ethical business practices, your actions should reflect your commitment to your brand’s purpose. Brands that integrate purpose into every aspect of their operations create stronger connections with consumers who share similar values.

Pangaia, a materials science company, has positioned itself at the intersection of nature and technology to create innovative, eco-friendly products. The company’s mission is to provide sustainable, high-performance materials, aiming to reduce the environmental impact of the fashion industry. Pangaia’s marketing efforts emphasize their commitment to sustainability, including the use of natural materials like seaweed fiber and recycled plastics (Pangaia, 2025). The company also focuses on "circular" fashion, incorporating biodegradable materials to ensure products leave a minimal carbon footprint.

By highlighting their innovative approach to sustainable fashion, Pangaia appeals to conscious consumers who prioritize ethical and environmentally-friendly choices. Their products not only embody these values but also become a tool for consumers to express their commitment to sustainability. Pangaia’s philosophy is clear - Miroslava Duma, the founder of Pangaia, has articulated the company's mission clearly: “Our mission is to design an earth-positive business model,” emphasizing that every product should be better for the planet than if it did not exist. She also highlights the importance of innovation in sustainable fashion, stating, “We can’t suddenly stop producing. People need jobs and an income – that’s how today’s economy works”.

  1. Communicating your purpose: Transparency is key

Once you've defined and embedded your purpose, it's crucial to communicate it clearly and honestly. Share impactful stories and transparently report on your contributions to build trust and engage your audience.

Stripe's Commitment to Carbon Removal

At Sapiens Growth Agency, we admire Stripe for its dedication to environmental sustainability. Stripe has committed to donating 1% of its revenue to carbon removal initiatives through its Stripe Climate program. This initiative supports the development and scaling of permanent carbon removal technologies, aiming to mitigate climate change.

TOMS' Evolution of the "One for One" Model

Another example is the "One for One" model" by a footwear brand TOMS donates a product for every one sold, initially providing shoes to children in developing countries. Despite donating over 94 million pairs, the model faced criticism for potentially harming local economies by providing free goods, which can disrupt local markets and businesses. Critics argue that such donations may not address the root causes of poverty and could lead to dependency rather than sustainable solutions. In response to these concerns, TOMS has evolved its strategy, shift to supporting local manufacturing to promote sustainable development.

The concept of giving back became central to many brands' marketing strategies, inspiring companies like Warby Parker to adopt similar models.

Warby Parker, the eyewear brand, also integrated a giving back philosophy into its business model. With its "Buy a Pair, Give a Pair" campaign, the company has distributed millions of pairs of glasses to people in need around the world. The brand’s CSR initiative aligns with TOMS’ ethos, showing that businesses can thrive while making a positive impact on society.

While the "One for One" model and similar initiatives have been praised for their generosity, they have also faced criticism regarding their long-term sustainability. Critics argue that these approaches can disrupt local markets and create dependency, as they provide free goods without addressing the underlying issues such as infrastructure, education, and economic development. In response, brands like TOMS have evolved their strategies to incorporate local sourcing, entrepreneurial support, and community empowerment to create more sustainable solutions that go beyond mere donation.

This shift demonstrates how brands can use their platforms to contribute to solving societal problems while ensuring that their actions are not inadvertently harming the very communities they seek to support.

Sources:

  • "One for One: The Impact and Evolution of TOMS' CSR Model," Knowledge@Wharton. Link

  • "How Warby Parker’s Giving Campaign Has Changed the Eyewear Industry," The Guardian. Link

  1. Measuring the success of your purpose-driven Initiatives

To gauge the effectiveness of your purpose-driven efforts, set clear goals and track them with Key Performance Indicators (KPIs). Metrics such as brand recognition, customer loyalty, and social impact assessments will help you refine your strategy over time. Regularly reviewing these metrics ensures that your initiatives align with your brand's purpose and resonate with your audience.

For example, at Sapiens Growth Agency, we donate 1% of our revenue through Stripe (note that not all of our revenue is processed via Stripe) to support Stripe's carbon removal initiatives and help offset emissions.

How Gen Alpha's mindful consumer behavior is shaping a sustainable future and how purpose-driven marketing is leading the way.

As the youngest generation of consumers, Gen Alpha is setting a new standard for how businesses approach sustainability. Unlike previous generations, their purchasing decisions are driven by thorough research, mindfulness, and a deep consideration of the impact their choices have on the world. This shift in consumer behavior is pushing businesses to integrate sustainability into their operations, not just as a marketing strategy, but as a core value.

Gen Alpha’s focus on purpose-driven marketing is making sustainability the norm rather than the exception. They demand transparency and authenticity from brands, expecting them to demonstrate a genuine commitment to sustainable practices. This generation’s influence is growing, driving a significant shift towards more responsible and ethical business operations.

Businesses that embrace purpose-driven marketing and align with Gen Alpha’s values will not only gain their loyalty but also be at the forefront of a more sustainable future. Recognizing and adapting to this change is crucial—not just for staying relevant, but for contributing to a global movement that prioritizes the well-being of our planet for generations to come.

Summary

In conclusion, purpose-driven marketing isn't just a nice-to-have; it's essential for brands that want to thrive in today's market. By focusing on what truly matters to your audience and reflecting that in every aspect of your business, you can build a brand that stands the test of time and change. Just look at TOMS shoes— their "One for One" model has evolved to support broader causes, proving that a strong purpose can deeply engage and inspire consumers.

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