Customers increasingly want to support businesses that align with their own values.Getty Images
It all began with a hike – six years ago when Debbie Alger trekked from Patagonia to Chile.
The journey, which took about six months to complete, inspired Ms. Alger to treat her body better and live with less.
“I returned home and I just wanted to be very minimalistic,” she says. “I wanted to minimize the products that we put in our bodies and put in the environment.”
So, at the age of 60, Ms. Alger went back to school and earned two diplomas to become an organic skincare formulator. Soon, she launched her own company: Birch Babe, which creates high quality, natural, cruelty-free and sustainably packaged skincare and beauty products. The purpose-driven company soon added Ms. Alger’s two daughters, Kelsey and Lindsay Irvine, to their team and the family-run business has built up a dedicated customer base.
Like those drawn to Birch Babe’s ethos, many customers these days want to support businesses with values that match theirs. A 2022 poll found that 82 per cent of consumers want a brand’s values to align with their own and three quarters of shoppers stopped buying from a brand because of a conflict over values.
“Younger demographics, like millennials, are increasingly aligning with brands that they feel have shared core values,” says Kelsey Reidl, a marketing consultant for small business owners.
Customers, Ms. Reidl explains, want to feel like they’re putting their money toward a future they want – not just a product. “Plus, it’s this instant connection between you and a business that you may have no other connection with.”
Another reason to have a clearly defined purpose: Customers are inundated with options. There are hundreds of brands for any given product. Ms. Reidl says that having a purpose and clearly stating your brand’s values can help differentiate a brand. However, it should be noted, having a clearly stated purpose can also alienate potential consumers who don’t align with your mission.
Stating their values loudly and proudly has worked well for Birch Babe. Though it can be more costly sometimes to ensure their products are sustainable and all-natural, Kelsey Irvine says that being consistent with their purpose has helped them maintain their customer base and grow it through referrals from happy customers.
“Our values are the business,” Ms. Irvine, Birch Babe’s CEO, says. “We don’t think of our customers as customers, but as our community that’s invested in us, so we want to continue to put our best foot forward with them, which has translated into business decisions.”
But do all businesses need a purpose?
Ms. Reidl says that every business is on a “sliding scale” from “no purpose at all” to “purpose-driven,” but most businesses are in the middle.
“Every single business has some hybrid of ‘we are in this for profit but we still care,’” she explains.
But does that mean you need some higher calling behind your company? While having a purpose can draw in a group of customers that eventually become “brand evangelists” who are in love with your product and will refer customers, Ms. Reidl says that not all businesses need a purpose.
“Sometimes there are just commodity products and services that just get the job done,” she says. “But if you’re looking to start a business that’s not just about getting the job done but really making the world a better place or developing a relationship with people in your community, having a purpose, a vision, a mission can be helpful.”
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